ACHE Board of Governors (BOG) Exam 2027 |
Sample Test Questions & Correct Answers |
Complete FACHE Exam
1. According to the Code of Ethics, one way executives can avoid or minimize negative
implications of conflict of interest is:
A) Develop a PR plan to address conflict of interest scenarios
B) *Not participate in specific decisions where conflict may exist
C) Ensure members submit annual holdings for inspection
D) Make the conflict known to those in superior positions
Answer: B
Rationale: Recusal from decisions where a conflict exists is the most direct way to avoid ethical
violations.
2. The principles of quality improvement require that executives change their management
philosophy from:
A) *Finding fault with employees to finding problems with processes
B) Finding fault with employees to involving them in the improvement of processes
C) Focusing on enhancing inspection techniques to focusing on variance
D) Focusing on employee's roles to focusing on process outcomes
Answer: A
Rationale: CQI focuses on system and process improvement rather than blaming individuals.
,3. What type of problem arises when an executive knowingly allows organization to continue in
double billing?
A) An ethical issue but may not be grounds for dismissal if policy is unclear
B) *An actual conflict of interest even absent a direct economic benefit to executive
C) An ethical problem for the employee if the executive receives direct economic benefit
D) An ethical problem if it clearly violates state or federal law
Answer: B
Rationale: Allowing double billing is a conflict of interest regardless of personal gain.
4. Which of the following is a unit of measure commonly used to determine physicians' clinical
productivity?
A) *RVU
B) CMS
C) IPO
D) CPU
Answer: A
Rationale: Relative Value Units (RVUs) are the standard measure of physician productivity and
reimbursement.
5. Which of the following third-party reimbursement methods provides the largest incentive for
the provider to reduce costs?
A) Charge-based
B) Cost-based
C) *Prospective payment
D) Per diem
Answer: C
Rationale: Prospective payment (e.g., DRGs) pays a fixed amount regardless of actual costs, incentivizing
efficiency.
,6. Statements of earnings, financial positions, changes in financial position and retained earnings
are required to be submitted yearly by all:
A) *Publicly owned HCOs
B) Privately owned HCOs
C) Government owned HCOs
D) Faith-based owned HCOs
Answer: A
Rationale: Publicly traded companies must file annual financial reports with the SEC.
7. Which of the following is an example of a capital expenditure?
A) Land purchased for resale
B) Surgical equipment with a useful life of 6 months
C) *A building with a useful life of 20 years
D) Medical supplies used in patient care
Answer: C
Rationale: Capital expenditures are long-term assets with useful lives exceeding one year.
8. What is the correct order of stages of accomplishing organizational change?
A) *Identifying, planning, implementing, evaluating
B) Planning, identifying, evaluating, implementation
C) Evaluation, planning, implementation, identifying
D) Planning, evaluating, identifying, implementation
Answer: A
Rationale: Change begins with identifying the need, then planning, implementing, and evaluating.
9. Boards make better decisions if they use information that is:
A) Readily available on their website
, B) Generated from computer studies of departmental activity reports
C) Summarized in graphs
D) *Focused on measurable outcomes of service quality and economic vitality
Answer: D
Rationale: Outcome-focused data enables strategic and accountable decision-making.
10. The central role of the HCO board includes all of the following except:
A) Setting the strategic plan and service values of the organization
B) Support for assessing changing market needs
C) *Support in managing important service programs or departments
D) Assuring the recruitment, hiring, support and reward of the CEO
Answer: C
Rationale: Day-to-day management of departments is the CEO's responsibility, not the board's.
11. The first role of the governing body is to:
A) Manage inputs of the HCO to achieve outputs that are its goals
B) Recruit members who understand the health services field
C) *Set objectives and develop policy to guide the organization in achieving its mission
D) Develop the operating plan and monitor departmental performance
Answer: C
Rationale: The board's primary role is policy-setting and strategic direction.
12. Internal members of the healthcare organization governing body:
A) Serve on an ad hoc basis and are rarely voting members
B) Are kept to a minimum due to confidentiality concerns
C) *Often include the CEO, medical director and CFO
D) Often include the executive staff in planning and information management
Answer: C
Sample Test Questions & Correct Answers |
Complete FACHE Exam
1. According to the Code of Ethics, one way executives can avoid or minimize negative
implications of conflict of interest is:
A) Develop a PR plan to address conflict of interest scenarios
B) *Not participate in specific decisions where conflict may exist
C) Ensure members submit annual holdings for inspection
D) Make the conflict known to those in superior positions
Answer: B
Rationale: Recusal from decisions where a conflict exists is the most direct way to avoid ethical
violations.
2. The principles of quality improvement require that executives change their management
philosophy from:
A) *Finding fault with employees to finding problems with processes
B) Finding fault with employees to involving them in the improvement of processes
C) Focusing on enhancing inspection techniques to focusing on variance
D) Focusing on employee's roles to focusing on process outcomes
Answer: A
Rationale: CQI focuses on system and process improvement rather than blaming individuals.
,3. What type of problem arises when an executive knowingly allows organization to continue in
double billing?
A) An ethical issue but may not be grounds for dismissal if policy is unclear
B) *An actual conflict of interest even absent a direct economic benefit to executive
C) An ethical problem for the employee if the executive receives direct economic benefit
D) An ethical problem if it clearly violates state or federal law
Answer: B
Rationale: Allowing double billing is a conflict of interest regardless of personal gain.
4. Which of the following is a unit of measure commonly used to determine physicians' clinical
productivity?
A) *RVU
B) CMS
C) IPO
D) CPU
Answer: A
Rationale: Relative Value Units (RVUs) are the standard measure of physician productivity and
reimbursement.
5. Which of the following third-party reimbursement methods provides the largest incentive for
the provider to reduce costs?
A) Charge-based
B) Cost-based
C) *Prospective payment
D) Per diem
Answer: C
Rationale: Prospective payment (e.g., DRGs) pays a fixed amount regardless of actual costs, incentivizing
efficiency.
,6. Statements of earnings, financial positions, changes in financial position and retained earnings
are required to be submitted yearly by all:
A) *Publicly owned HCOs
B) Privately owned HCOs
C) Government owned HCOs
D) Faith-based owned HCOs
Answer: A
Rationale: Publicly traded companies must file annual financial reports with the SEC.
7. Which of the following is an example of a capital expenditure?
A) Land purchased for resale
B) Surgical equipment with a useful life of 6 months
C) *A building with a useful life of 20 years
D) Medical supplies used in patient care
Answer: C
Rationale: Capital expenditures are long-term assets with useful lives exceeding one year.
8. What is the correct order of stages of accomplishing organizational change?
A) *Identifying, planning, implementing, evaluating
B) Planning, identifying, evaluating, implementation
C) Evaluation, planning, implementation, identifying
D) Planning, evaluating, identifying, implementation
Answer: A
Rationale: Change begins with identifying the need, then planning, implementing, and evaluating.
9. Boards make better decisions if they use information that is:
A) Readily available on their website
, B) Generated from computer studies of departmental activity reports
C) Summarized in graphs
D) *Focused on measurable outcomes of service quality and economic vitality
Answer: D
Rationale: Outcome-focused data enables strategic and accountable decision-making.
10. The central role of the HCO board includes all of the following except:
A) Setting the strategic plan and service values of the organization
B) Support for assessing changing market needs
C) *Support in managing important service programs or departments
D) Assuring the recruitment, hiring, support and reward of the CEO
Answer: C
Rationale: Day-to-day management of departments is the CEO's responsibility, not the board's.
11. The first role of the governing body is to:
A) Manage inputs of the HCO to achieve outputs that are its goals
B) Recruit members who understand the health services field
C) *Set objectives and develop policy to guide the organization in achieving its mission
D) Develop the operating plan and monitor departmental performance
Answer: C
Rationale: The board's primary role is policy-setting and strategic direction.
12. Internal members of the healthcare organization governing body:
A) Serve on an ad hoc basis and are rarely voting members
B) Are kept to a minimum due to confidentiality concerns
C) *Often include the CEO, medical director and CFO
D) Often include the executive staff in planning and information management
Answer: C
