ACHE BOG PRACTICE EXAM QUESTIONS WITH CORRECT AND COMPLETE SOLUTIONS

1 According to the ACHE’s Code of Ethics, one way that healthcare executives can avoid or minimize the negative implications of conflict of interest is to: Make the conflict known to those in superior positions. 3 MULTIPLE CHOICE OPTIONS #2 The principles of quality improvement require that healthcare executives change their management philosophy from: Finding fault with employees to finding problems in processes. 3 MULTIPLE CHOICE OPTIONS #3 What type of problem arises when a healthcare executive knowingly allows the organization to continue double billing? An actual conflict of interest, even absent a direct economic benefit to the healthcare executive. 3 MULTIPLE CHOICE OPTIONS #4 Which of the following is a unit of measure commonly used to determine physicians’ clinical productivity? RVU 3 MULTIPLE CHOICE OPTIONS #5 Which of the following third-party reimbursement methods provides the largest financial incentive for the provider to reduce cost? Prospective payment 3 MULTIPLE CHOICE OPTIONS #6 Statements of earnings, financial positions, changes in financial position and retained earnings are required to be submitted yearly by all: Publicly owned healthcare organizations. 3 MULTIPLE CHOICE OPTIONS #181 In a healthcare organization, who has ultimate fiduciary responsibility? Board of directors 3 MULTIPLE CHOICE OPTIONS #182 Medicare DRG payment is highly dependent upon a hospital’s case mix index. This index represents the average relative weight for all Medicare patients treated in a: Specific period 3 MULTIPLE CHOICE OPTIONS #183 If a CEO wanted to look at a “snapshot” of the financial condition of the healthcare organization, he/she would review which of the following? Balance Sheet 3 MULTIPLE CHOICE OPTIONS #184 Where should charity care be shown in a healthcare organization’s financial statement? In the notes to the financial statements 3 MULTIPLE CHOICE OPTIONS #185 Which of the following is the best way to assign costs in responsibility management Assign costs to the department manager who is responsible for making decisions about those costs 3 MULTIPLE CHOICE OPTIONS #186 You are planning to conduct an assessment of the utilization patterns in your organization’s emergency department over the past three years. Which of the following techniques would be most appropriate? Trend Analysis 3 MULTIPLE CHOICE OPTIONS #187 A manager who seeks input from others prior to making a decision is engaging in which leadership style? Participative 3 MULTIPLE CHOICE OPTIONS #188 When a specialist within the organization provides a directive or states an opinion, there is recognition of that individual as an expert in the field. This is an Example of what type of authority? Functional 3 MULTIPLE CHOICE OPTIONS #189 Which of the following is not an Example of marketing function? Reviewing organizational costs. 3 MULTIPLE CHOICE OPTIONS #190 The arrival of women for obstetrical deliveries or patient flow in an emergency department can best be analyzed through the use of which technique? Stochastic Modeling 3 MULTIPLE CHOICE OPTIONS #191 One approach for measuring technical quality of clinical support services is: Process review 3 MULTIPLE CHOICE OPTIONS #192 Which financial statement is updated daily to reflect changes in assets or composition of financing? The balance sheet 3 MULTIPLE CHOICE OPTIONS #193 An organization’s long-term competitive position is substantially dependent on its credit rating. Which of the following is a direct benefit of an excellent credit rating? Improved cost of capital 3 MULTIPLE CHOICE OPTIONS #194 The applicability of continuous improvement in healthcare organizations assumes: An organizational commitment 3 MULTIPLE CHOICE OPTIONS #195 Which of the following is an output-related performance measure? Provider productivity 3 MULTIPLE CHOICE OPTIONS #196 The thrust of antitrust legislation as applied to the healthcare field is to: Protect the public's economic interest 3 MULTIPLE CHOICE OPTIONS #197 The primary function of an extended-care unit is to provide: Post-acute care services in a rehabilitation-oriented environment. 3 MULTIPLE CHOICE OPTIONS #198 All of the following are essential components of strategic planning except: Timetables for activity completion 3 MULTIPLE CHOICE OPTIONS #199 Which one of the following conditions must be met for human subjects to be used in a medical research program? Risk should be clearly explained in understandable language to each individual subject. 3 MULTIPLE CHOICE OPTIONS #200 Controlling the costs of accounts receivable is heavily affected by The time or length of the payment cycle 3 MULTIPLE CHOICE OPTIONS #201 Operational planning can be correctly defined as: The process by which short-range objectives and actions are established and implemented in accordance with the strategic plan 3 MULTIPLE CHOICE OPTIONS #202 Short-range planning is enhanced if a strategic plan has been adopted because: A frame of reference is already in place 3 MULTIPLE CHOICE OPTIONS #203 In the field of healthcare services, which of the following trends has significantly increased the need to develop more comprehensive and more systematic credentialing processes in healthcare facilities? The growth of liability of healthcare facilities for malpractice by health practitioners 3 MULTIPLE CHOICE OPTIONS #204 In a sound human resources program, the primary purpose of the job classification system is to: Rank jobs by kind and level of work performed. 3 MULTIPLE CHOICE OPTIONS #205 Which of the following statements best defines increased productivity? An increase in productivity occurs when a reduction occurs in the ratio of hours worked to the number of units of service rendered. 3 MULTIPLE CHOICE OPTIONS #206 Which of the following is the depreciation method that best recognizes changes in the general purchasing power of the dollar and/or changes in the replacement cost of specific assets? Price-level depreciation 3 MULTIPLE CHOICE OPTIONS #207 When third-party policies and programs impede the healthcare facility’s fiscal capacity to renovate and model its plant as routinely scheduled, the healthcare facility—to protect itself—should first: Delay capital improvements until funds are available 3 MULTIPLE CHOICE OPTIONS #208 The method referred to as value analysis is used in inventory control activities to: Reduce cost without impairing functional efficiency 3 MULTIPLE CHOICE OPTIONS #209 Under generally accepted accounting standards, bad debts are reported as a/an: Operating expense 3 MULTIPLE CHOICE OPTIONS