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BOG Practice Exam - FACHE With correct answers 2025

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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. correct answersd. 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. correct answersa. 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. correct answersb. An actual conflict of interest, even absent a direct economic benefit to the healthcare executive. Which of the following is a unit of measure commonly used to determine physicians' clinical productivity? a. RVU b. CMS c. IPO d. CPU correct answersa. 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 correct answersc. Prospective payment

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BOG Practice ExaFACHE
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ACHE BOG

For the routine service cost center, an increase in the number of patient
days over the budgeted number of patient days will result in:
1.A higher average cost per patient day.
2.A lower average cost per patient day.
3.An increase in the budgeted fixed costs for the routine service cost
center.
4. No change in the average cost per patient day. correct answers2.A
lower average cost per patient day.

Which of the following balance sheet items would differ between a for-profit
and a not- for-profit healthcare organization?
5.Retained earnings.
6.Plant, property, and equipment.
7.Real estate.
8.Investments. correct answers1.Retained earnings

Which of the following leadership actions most clearly supports
organizational transformation toward total quality management?
9.Convening and chairing the Quality Council.
10. Changing the name of the quality department from QA
to CQI. 3.Requiring all direct reports to attend an
introductory course in TQM.
4. Hiring a customer service representative. correct answers1.Convening
and chairing the Quality Council.

In the healthcare field, the accountability of management is best
measured by the:
1.Balance maintained between service quality and operational efficiency.
2.Results shown on the annual expense and income statement.
3.Balance maintained between physician satisfaction and patient needs.
4. Degree to which management's needs are met. correct answers1.Balance
maintained between service quality and operational efficiency.

Consumer "report card" development and distribution has become a high
priority for managed care organizations because:
1. Measurements of performance have now become well established,
standardized, and accepted by all parties.
2. Purchasers are pressuring for disclosure of meaningful performance
information for use by buyers and consumers.
3. Consumers in healthcare are now well organized, and managed care
organizations feel a need to satisfy them.
4. Physicians are increasingly encouraging their patients to evaluate
managed care organizations based on these report cards. correct
answers2.Purchasers are pressuring for disclosure of meaningful
performance information for use by buyers and consumers.

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