FACHE EXAM PREP QUESTIONS ANSWERS STUDY GUIDE VERIFIED SOLUTION
Question:
The CEO of a 125-bed hospital realizes that her hospital is surrounded by three similar institutions
and determines that her institution has no competitive advantage. Which of the following strategies
should she pursue? a) Target many market segments based on demographics b) Prioritize market
segments and heavily promote to key groups c) Advertise broadly to increase general awareness d)
Recruit more physicians to admit to the institution.
Answer:
b) Prioritize market segments and heavily promote to key groups
Question:
The objective of maintenance and repair services si ot keep the facility and its equipment operating
like new. This goal is best achieved by emphasizing: a) Prevention b) Efficiency c) Productivity d)
Safety.
Answer:
a) Prevention
Question:
Ahealthcare facility can best meet its social and economic goals by: a) Developing a realistic and
coordinated approach to long-range planning b) Devoting most of its efforts to the development of
efficient operational practices c) Having a good public relations team that will focus on the facility's
image in the community d) Providing al reimbursable services desired by the community.
Answer:
b) Devoting most of its efforts to the development of efficient operational practices
Question:
,When contracting for services, an organization typically finds the best value when: a) The
organization creates an internal auditor position to oversee the service b) A board member
negotiates for discounted services c) The organization alows the prospective supplier to develop the
contractual service expectations d) There is competition between several suppliers with proven
performance and reputation.
Answer:
d) There is competition between several suppliers with proven performance and reputation
Question:
Which of the following statements is false? a) Much of the art of forecasting relies on the opinions
of experts. b) Forecasting, fi correctly performed by means of technological forecasting approaches,
is an exact science. c) Forecasting includes applying the rates of anticipated future change to the
current status to predict the future. d) Qualitative data are often used in developing assumptions on
which quantitative forecasting can be constructed.
Answer:
b) Forecasting, fi correctly performed by means of technological forecasting approaches, is an exact
science.
Question:
The most successful approach ot strategic planning would include: a) a well-written mission
statement, long-range plan, fiscal plan, plus the history and discussion surrounding them b) A vision
statement that can be achieved in the short-term, and avoidance of high-risk decisions c) Focusing
on the individual organization's strengths and ignoring the activity of competitors d) Using rules and
past experiences solely to guide future action, rather than overemphasizing the needs of
stakeholders.
Answer:
a) a well-written mission statement, long-range plan, fiscal plan, plus the history and discussion
surrounding them
Question:
One of the best ways ot determine market size and share of each competitor ni a market is to: a)
Survey the opinions of the sales force or the medical/professional staff b) Survey a stratified sample
of patients c) Hire a consultant d) Estimate the production capacity of each competitor.
, Answer:
a) Survey the opinions of the sales force or the medical/professional staff
Question:
When data are scarce, the best method of forecasting is to use: a) Computer-based simulation
methods b) Time series analysis c) Econometric forecasting d) Qualitative techniques.
Answer:
d) Qualitative techniques
Question:
Which of the following best describes a healthcare organization's recognized service reputation that
has been earned over the long term within its market: a) Soft assets b) Market share c) Brand equity
d) Community perception.
Answer:
c) Brand equity
Question:
The governing body of a healthcare institution meets its responsibility for the quality of patient care
by: a) Delegating accountability for patient care to the committee appointed by the governing body,
which provides a formal administrative liaison between the governing body, the administration, and
the medical/professional staff. b) Delegating to the CEO responsibility for developing criteria for
making certain that an effective medical/professional audit is carried out. c) Establishing,
maintaining, and supporting through the medical/professional staff and management staff an
ongoing program of review, evaluation of patient/client care, and action on findings. d) Establishing
an effective system for utilization review, medical/professional audit activities, and credentialing of
the medical/professional staff.
Answer:
c) Establishing, maintaining, and supporting through the medical/professional staff and management
staff an ongoing program of review, evaluation of patient/client care, and action on findings.
Question:
Question:
The CEO of a 125-bed hospital realizes that her hospital is surrounded by three similar institutions
and determines that her institution has no competitive advantage. Which of the following strategies
should she pursue? a) Target many market segments based on demographics b) Prioritize market
segments and heavily promote to key groups c) Advertise broadly to increase general awareness d)
Recruit more physicians to admit to the institution.
Answer:
b) Prioritize market segments and heavily promote to key groups
Question:
The objective of maintenance and repair services si ot keep the facility and its equipment operating
like new. This goal is best achieved by emphasizing: a) Prevention b) Efficiency c) Productivity d)
Safety.
Answer:
a) Prevention
Question:
Ahealthcare facility can best meet its social and economic goals by: a) Developing a realistic and
coordinated approach to long-range planning b) Devoting most of its efforts to the development of
efficient operational practices c) Having a good public relations team that will focus on the facility's
image in the community d) Providing al reimbursable services desired by the community.
Answer:
b) Devoting most of its efforts to the development of efficient operational practices
Question:
,When contracting for services, an organization typically finds the best value when: a) The
organization creates an internal auditor position to oversee the service b) A board member
negotiates for discounted services c) The organization alows the prospective supplier to develop the
contractual service expectations d) There is competition between several suppliers with proven
performance and reputation.
Answer:
d) There is competition between several suppliers with proven performance and reputation
Question:
Which of the following statements is false? a) Much of the art of forecasting relies on the opinions
of experts. b) Forecasting, fi correctly performed by means of technological forecasting approaches,
is an exact science. c) Forecasting includes applying the rates of anticipated future change to the
current status to predict the future. d) Qualitative data are often used in developing assumptions on
which quantitative forecasting can be constructed.
Answer:
b) Forecasting, fi correctly performed by means of technological forecasting approaches, is an exact
science.
Question:
The most successful approach ot strategic planning would include: a) a well-written mission
statement, long-range plan, fiscal plan, plus the history and discussion surrounding them b) A vision
statement that can be achieved in the short-term, and avoidance of high-risk decisions c) Focusing
on the individual organization's strengths and ignoring the activity of competitors d) Using rules and
past experiences solely to guide future action, rather than overemphasizing the needs of
stakeholders.
Answer:
a) a well-written mission statement, long-range plan, fiscal plan, plus the history and discussion
surrounding them
Question:
One of the best ways ot determine market size and share of each competitor ni a market is to: a)
Survey the opinions of the sales force or the medical/professional staff b) Survey a stratified sample
of patients c) Hire a consultant d) Estimate the production capacity of each competitor.
, Answer:
a) Survey the opinions of the sales force or the medical/professional staff
Question:
When data are scarce, the best method of forecasting is to use: a) Computer-based simulation
methods b) Time series analysis c) Econometric forecasting d) Qualitative techniques.
Answer:
d) Qualitative techniques
Question:
Which of the following best describes a healthcare organization's recognized service reputation that
has been earned over the long term within its market: a) Soft assets b) Market share c) Brand equity
d) Community perception.
Answer:
c) Brand equity
Question:
The governing body of a healthcare institution meets its responsibility for the quality of patient care
by: a) Delegating accountability for patient care to the committee appointed by the governing body,
which provides a formal administrative liaison between the governing body, the administration, and
the medical/professional staff. b) Delegating to the CEO responsibility for developing criteria for
making certain that an effective medical/professional audit is carried out. c) Establishing,
maintaining, and supporting through the medical/professional staff and management staff an
ongoing program of review, evaluation of patient/client care, and action on findings. d) Establishing
an effective system for utilization review, medical/professional audit activities, and credentialing of
the medical/professional staff.
Answer:
c) Establishing, maintaining, and supporting through the medical/professional staff and management
staff an ongoing program of review, evaluation of patient/client care, and action on findings.
Question:
