©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
BOG Practice Exam – FACHE Questions
With Correct Answers
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:
a. Develop a public relations plan to address potential conflict-of-interest scenarios.
b. Not participate in the specific decision where conflict may exist.
c. Ensure members submit annual lists of major activities and holdings for inspections.
d. Make the conflict known to those in superior positions. - answer✔✔d. Make the conflict
known to those in superior positions
The principles of quality improvement require that healthcare executives change their
management philosophy from:
a. Finding fault with employees to finding problems in processes.
b. Finding fault with employees to involving them in the improvement of processes.
c. Focusing on enhanced inspection techniques to focusing on variance.
d. Focusing on employees' roles to focusing on process outcomes. - answer✔✔a. Finding fault
with employees to finding problems in processes.
What type of problem arises when a healthcare executive knowingly allows the organization to
continue double billing?
a. An ethical problem for the healthcare executive, but may not be grounds for dismissal if
organizational policy is not clearly stated.
b. An actual conflict of interest, even absent a direct economic benefit to the healthcare
executive.
c. An ethical problem for the employee if the healthcare executive receives direct economic
benefit.
d. An ethical problem if it clearly violates state or federal law. - answer✔✔b. An actual conflict
of interest, even absent a direct economic benefit to the healthcare executive.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
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. RVU
Which of the following third-party reimbursement methods provides the largest financial
incentive for the provider to reduce cost?
a. Charge-based
b. Cost-based
c. Prospective payment
d. Per diem - answer✔✔c. Prospective payment
Statements of earnings, financial positions, changes in financial position and retained earnings
are required to be submitted yearly by all:
a. Publicly owned healthcare organizations.
b. Privately owned healthcare organizations.
c. Government owned healthcare organizations.
d. Faith-based owned healthcare organizations. - answer✔✔a. Publicly owned healthcare
organizations.
Which of the following is an Example of a capital expenditure?
a. Land that is purchased for resale.
b. Surgical equipment with a useful life of six months.
c. A building with a useful life of 20 years.
d. Medical supplies used for patient care. - answer✔✔c. A building with a useful life of 20 years.
What is the correct order of stages for accomplishing organization change?
a. Identifying, planning, implementation, evaluation.
b. Planning, identifying, evaluation, implementation.
c. Evaluation, planning, implementation, identifying.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
d. Planning, evaluation, identifying, implementation. - answer✔✔a. Identifying, planning,
implementation, evaluation.
Boards make better strategic decisions if they use information that is:
a. Readily available on special board website.
b. Generated from computer studies of departmental activity reports.
c. Summarized in graphs for better understanding.
d. Focused on measurable outcomes of service quality and economic vitality. - answer✔✔d.
Focused on measurable outcomes of service quality and economic vitality.
The central role of the health services organization board includes all of the
following:
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, hire, support and reward of the CEO. - answer✔✔c. Support in
managing important service programs or departments
The first role of the governing body is to:
a. Manage inputs of the healthcare organization to achieve the output 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. Set
objectives and develop policy to guide the organization in achieving its mission.
Internal members of the healthcare organization's governing body:
a. Serve on an ad hoc basis and are rarely voting members.
b. Are kept to a minimum due to concerns regarding confidentiality.
c. Often include the CEO, medical director and CFO.
d. Often include the executive staff in planning and information management - answer✔✔c.
Often include the CEO, medical director and CFO.
In assessing the advantage of using a focus group over a survey in
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
evaluating a program, one could say that focus groups:
a. Are likely to use a larger sample size.
b. Are more useful in designing improvements to a program.
c. Are more precise in designing improvements to a program.
d. Are useful only when maintaining objectivity is not important - answer✔✔b. Are more useful
in designing improvements to a program.
From a marketing viewpoint, the development of standards of practice, clinical pathways,
clinical guidelines and protocols can all be viewed as efforts to deal with which unique aspect of
delivering services:
a. Inseparability.
b. Intangibility.
c. Heterogeneity.
d. Perishability. - answer✔✔c. Heterogeneity.
What purpose do market plans fulfill for the healthcare organization?
a. Provide a business plan (or plans) as a subset of the organization's marketing plan.
b. Present general goals for the organization to attain in the next three to five years.
c. Develop promotion methods to be used in attaining the organization's objectives.
d. Provide specific objectives for utilization attainment the next fiscal year. - answer✔✔d.
Provide specific objectives for utilization attainment the next fiscal year.
The five major functions of marketing are:
a. Identifying markets, promoting the organization, recruitment of providers, managing external
relationships, patient selection.
b. Identifying markets, health promotion, managing external relationships, patient selection,
attracting capable workers.
c. Identifying markets, promoting the organization, managing external relationship, convincing
patients to select the organization, attracting capable workers.
d. Identifying markets, promoting the organization, managing external relationships, strategic
planning, physician recruitment. - answer✔✔c. Identifying markets, promoting the organization,
managing external relationship, convincing patients to select the organization, attracting capable
workers.
BOG Practice Exam – FACHE Questions
With Correct Answers
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:
a. Develop a public relations plan to address potential conflict-of-interest scenarios.
b. Not participate in the specific decision where conflict may exist.
c. Ensure members submit annual lists of major activities and holdings for inspections.
d. Make the conflict known to those in superior positions. - answer✔✔d. Make the conflict
known to those in superior positions
The principles of quality improvement require that healthcare executives change their
management philosophy from:
a. Finding fault with employees to finding problems in processes.
b. Finding fault with employees to involving them in the improvement of processes.
c. Focusing on enhanced inspection techniques to focusing on variance.
d. Focusing on employees' roles to focusing on process outcomes. - answer✔✔a. Finding fault
with employees to finding problems in processes.
What type of problem arises when a healthcare executive knowingly allows the organization to
continue double billing?
a. An ethical problem for the healthcare executive, but may not be grounds for dismissal if
organizational policy is not clearly stated.
b. An actual conflict of interest, even absent a direct economic benefit to the healthcare
executive.
c. An ethical problem for the employee if the healthcare executive receives direct economic
benefit.
d. An ethical problem if it clearly violates state or federal law. - answer✔✔b. An actual conflict
of interest, even absent a direct economic benefit to the healthcare executive.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
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. RVU
Which of the following third-party reimbursement methods provides the largest financial
incentive for the provider to reduce cost?
a. Charge-based
b. Cost-based
c. Prospective payment
d. Per diem - answer✔✔c. Prospective payment
Statements of earnings, financial positions, changes in financial position and retained earnings
are required to be submitted yearly by all:
a. Publicly owned healthcare organizations.
b. Privately owned healthcare organizations.
c. Government owned healthcare organizations.
d. Faith-based owned healthcare organizations. - answer✔✔a. Publicly owned healthcare
organizations.
Which of the following is an Example of a capital expenditure?
a. Land that is purchased for resale.
b. Surgical equipment with a useful life of six months.
c. A building with a useful life of 20 years.
d. Medical supplies used for patient care. - answer✔✔c. A building with a useful life of 20 years.
What is the correct order of stages for accomplishing organization change?
a. Identifying, planning, implementation, evaluation.
b. Planning, identifying, evaluation, implementation.
c. Evaluation, planning, implementation, identifying.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
d. Planning, evaluation, identifying, implementation. - answer✔✔a. Identifying, planning,
implementation, evaluation.
Boards make better strategic decisions if they use information that is:
a. Readily available on special board website.
b. Generated from computer studies of departmental activity reports.
c. Summarized in graphs for better understanding.
d. Focused on measurable outcomes of service quality and economic vitality. - answer✔✔d.
Focused on measurable outcomes of service quality and economic vitality.
The central role of the health services organization board includes all of the
following:
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, hire, support and reward of the CEO. - answer✔✔c. Support in
managing important service programs or departments
The first role of the governing body is to:
a. Manage inputs of the healthcare organization to achieve the output 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. Set
objectives and develop policy to guide the organization in achieving its mission.
Internal members of the healthcare organization's governing body:
a. Serve on an ad hoc basis and are rarely voting members.
b. Are kept to a minimum due to concerns regarding confidentiality.
c. Often include the CEO, medical director and CFO.
d. Often include the executive staff in planning and information management - answer✔✔c.
Often include the CEO, medical director and CFO.
In assessing the advantage of using a focus group over a survey in
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
evaluating a program, one could say that focus groups:
a. Are likely to use a larger sample size.
b. Are more useful in designing improvements to a program.
c. Are more precise in designing improvements to a program.
d. Are useful only when maintaining objectivity is not important - answer✔✔b. Are more useful
in designing improvements to a program.
From a marketing viewpoint, the development of standards of practice, clinical pathways,
clinical guidelines and protocols can all be viewed as efforts to deal with which unique aspect of
delivering services:
a. Inseparability.
b. Intangibility.
c. Heterogeneity.
d. Perishability. - answer✔✔c. Heterogeneity.
What purpose do market plans fulfill for the healthcare organization?
a. Provide a business plan (or plans) as a subset of the organization's marketing plan.
b. Present general goals for the organization to attain in the next three to five years.
c. Develop promotion methods to be used in attaining the organization's objectives.
d. Provide specific objectives for utilization attainment the next fiscal year. - answer✔✔d.
Provide specific objectives for utilization attainment the next fiscal year.
The five major functions of marketing are:
a. Identifying markets, promoting the organization, recruitment of providers, managing external
relationships, patient selection.
b. Identifying markets, health promotion, managing external relationships, patient selection,
attracting capable workers.
c. Identifying markets, promoting the organization, managing external relationship, convincing
patients to select the organization, attracting capable workers.
d. Identifying markets, promoting the organization, managing external relationships, strategic
planning, physician recruitment. - answer✔✔c. Identifying markets, promoting the organization,
managing external relationship, convincing patients to select the organization, attracting capable
workers.
