Healthcare Administration Evolution,
Systems, and Leadership Test
Questions With 100% Correct Answers
2025-2026 Updated.
health care - Answer an act or deed between the healthcare provider and the patient to
maintain or improve the patient's healthcare status
biomedical model - Answer a theoretical framework in healthcare that views illness and
disease as primarily resulting from biological factors
holistic health - Answer an approach to wellness that simultaneously addresses the physical,
mental, emotional, social, and spiritual components of health
holistic medicine - Answer the practice of healthcare professionals using a diverse range of
disciplines, religious philosophies, and cultural practices to heal individuals, communities, and
the environment
functional organizational structure - Answer The organization is split into departments based
on the employees' expertise, such as the manager or chief executive officer, commercial and
marketing, finance, accounting, managerial, facilities, etc.
functional organizational structure advantages - Answer -Enhanced coordination & control
-Centralized decision-making
-Enhanced organizational-level perspective
-More efficient use of managerial & technical talent
-Facilitated career paths in specialized areas
functional organizational structure disadvantages - Answer Specialization can lead to
departments operating in silos
Potential for decreased communication
Narrow business perspectives
,multi-divisional organizational structure advantages - Answer Ability to hold corporate
executives accountable for the results of local operations that are within their control
multi-divisional organizational structure disadvantages - Answer Duplication of functions,
such as products and services across divisions, which threatens the quality and costs of
healthcare
Increased operational costs due to the inability to achieve economies of scale
Leads to a lack of standardization and inefficiencies
Matrix organizational structure - Answer comprises the functional structure and a temporary
project structure, which requires using two managers simultaneously
Matrix organizational structure advantages - Answer Clearly defined project objectives
Seamless integration of project and functional objectives
Efficient use of limited human resources
Fluid streaming of information throughout the project
Prompt diffusion of team members back into the functional organization upon project
completion without organizational disruption
Ability of functional management to handle conflicts arising at the project level
Matrix organizational structure disadvantages - Answer Increases the complexity of the
organization
Problems derived from having employees answer to too many bosses and having conflicting
managerial directives
Difficulty in establishing priorities for functional and project management
Delay in management reactions
accountable care organization (ACO) - Answer a network of doctors, hospitals, and other
healthcare providers that voluntarily come together to provide coordinated, high-quality care to
their patients
managed care organization (MCO) - Answer a type of healthcare delivery system that aims to
manage the cost, quality, and accessibility of healthcare services; MCOs are commonly
associated with HMOs, PPOs, and POS plans
,health maintenance organization - Answer a type of managed care organization that
provides health insurance coverage through a network of healthcare providers who offer
services to members for a fixed fee
Integrated Delivery System (IDS) - Answer a network of organizations that provides or
arranges to provide an organized variety of services to specific populations and is held
accountable for the outcomes and health status of those populations
consumer-driven health plan (CDHP) - Answer (also known as a high-deductible health plan)
a type of health insurance plan that encourages individuals to manage their healthcare costs
Fee-for-service (FFS) - Answer a system wherein healthcare is provided as individual units of
service, such as magnetic resonance imaging (MRI) or other X-ray, medical examination, flu
shot, or other service
preferred provider - Answer a type of organization that provides services based on contracts
with groups of physicians and hospitals that are referred to as preferred providers
First contact as the gateway to the healthcare system. - Answer primary care
Occur when needed after the patient has been seen at primary care. - Answer specialty care
In integrated systems such as managed care, Primary care physicians (PCP) serve as - Answer
gatekeepers to control cost, usage of services, and allocation of resources.
Treats the person holistically - Answer primary care physicians
Trains in ambulatory care setting to learn how to treat many patient conditions and diseases. -
Answer Primary care
public health services - Answer services provided by local health departments, including
well-baby care, venereal disease clinics, family planning services, screening and treatment for
tuberculosis, and ambulatory mental health services
Which organizational structure used by healthcare facilities incorporates a temporary project
, Which type of healthcare organization is described in this scenario? - Answer accountable
care organization (ACO)
Which type of healthcare financing includes savings options such as a health savings account or
a health reimbursement account? - Answer consumer-driven health plan
health insurance marketplace - Answer system established to facilitate the purchase of
health insurance in organized markets (also referred to as health insurance exchanges)
consumerism - Answer the trend of patients increasingly acting as consumers who make
informed choices about their healthcare services based on quality, cost, and other factors
Radio Frequency Identification (RFID) - Answer a technology used in healthcare to track and
manage medical equipment, pharmaceuticals, and sometimes patient information, using radio
waves for automatic identification and tracking
Information Technology (IT) - Answer the use of digital technologies, like EHRs and
telemedicine, for managing patient information, delivering healthcare services, and supporting
decision-making processes
Affordable Care Act (ACA) - Answer Enacted in 2010, the ACA aimed to increase the quality
and affordability of health insurance. It expanded Medicaid, created health insurance
marketplaces, and implemented regulations prohibiting insurers from denying coverage due to
pre-existing conditions
Food and Drug Administration Safety and Innovation Act (FDASIA) - Answer Enacted in 2012,
FDASIA aimed to enhance the regulation of medical products by the FDA. It included provisions
to expedite the review of new drugs and medical devices, improve drug safety monitoring, and
strengthen the FDA's authority to regulate drug-compounding pharmacies.
Health Information Technology for Economic and Clinical Health Act (HITECH Act) - Answer
Enacted in 2009, the HITECH Act promotes the adoption and meaningful use of electronic
health records (EHRs) and strengthens HIPAA privacy and security provisions related to
electronic health information
Consolidated Omnibus Budget Reconciliation Act (COBRA) - Answer enacted in 1985,
requires employers with 20 or more employees to offer temporary continuation of health
Systems, and Leadership Test
Questions With 100% Correct Answers
2025-2026 Updated.
health care - Answer an act or deed between the healthcare provider and the patient to
maintain or improve the patient's healthcare status
biomedical model - Answer a theoretical framework in healthcare that views illness and
disease as primarily resulting from biological factors
holistic health - Answer an approach to wellness that simultaneously addresses the physical,
mental, emotional, social, and spiritual components of health
holistic medicine - Answer the practice of healthcare professionals using a diverse range of
disciplines, religious philosophies, and cultural practices to heal individuals, communities, and
the environment
functional organizational structure - Answer The organization is split into departments based
on the employees' expertise, such as the manager or chief executive officer, commercial and
marketing, finance, accounting, managerial, facilities, etc.
functional organizational structure advantages - Answer -Enhanced coordination & control
-Centralized decision-making
-Enhanced organizational-level perspective
-More efficient use of managerial & technical talent
-Facilitated career paths in specialized areas
functional organizational structure disadvantages - Answer Specialization can lead to
departments operating in silos
Potential for decreased communication
Narrow business perspectives
,multi-divisional organizational structure advantages - Answer Ability to hold corporate
executives accountable for the results of local operations that are within their control
multi-divisional organizational structure disadvantages - Answer Duplication of functions,
such as products and services across divisions, which threatens the quality and costs of
healthcare
Increased operational costs due to the inability to achieve economies of scale
Leads to a lack of standardization and inefficiencies
Matrix organizational structure - Answer comprises the functional structure and a temporary
project structure, which requires using two managers simultaneously
Matrix organizational structure advantages - Answer Clearly defined project objectives
Seamless integration of project and functional objectives
Efficient use of limited human resources
Fluid streaming of information throughout the project
Prompt diffusion of team members back into the functional organization upon project
completion without organizational disruption
Ability of functional management to handle conflicts arising at the project level
Matrix organizational structure disadvantages - Answer Increases the complexity of the
organization
Problems derived from having employees answer to too many bosses and having conflicting
managerial directives
Difficulty in establishing priorities for functional and project management
Delay in management reactions
accountable care organization (ACO) - Answer a network of doctors, hospitals, and other
healthcare providers that voluntarily come together to provide coordinated, high-quality care to
their patients
managed care organization (MCO) - Answer a type of healthcare delivery system that aims to
manage the cost, quality, and accessibility of healthcare services; MCOs are commonly
associated with HMOs, PPOs, and POS plans
,health maintenance organization - Answer a type of managed care organization that
provides health insurance coverage through a network of healthcare providers who offer
services to members for a fixed fee
Integrated Delivery System (IDS) - Answer a network of organizations that provides or
arranges to provide an organized variety of services to specific populations and is held
accountable for the outcomes and health status of those populations
consumer-driven health plan (CDHP) - Answer (also known as a high-deductible health plan)
a type of health insurance plan that encourages individuals to manage their healthcare costs
Fee-for-service (FFS) - Answer a system wherein healthcare is provided as individual units of
service, such as magnetic resonance imaging (MRI) or other X-ray, medical examination, flu
shot, or other service
preferred provider - Answer a type of organization that provides services based on contracts
with groups of physicians and hospitals that are referred to as preferred providers
First contact as the gateway to the healthcare system. - Answer primary care
Occur when needed after the patient has been seen at primary care. - Answer specialty care
In integrated systems such as managed care, Primary care physicians (PCP) serve as - Answer
gatekeepers to control cost, usage of services, and allocation of resources.
Treats the person holistically - Answer primary care physicians
Trains in ambulatory care setting to learn how to treat many patient conditions and diseases. -
Answer Primary care
public health services - Answer services provided by local health departments, including
well-baby care, venereal disease clinics, family planning services, screening and treatment for
tuberculosis, and ambulatory mental health services
Which organizational structure used by healthcare facilities incorporates a temporary project
, Which type of healthcare organization is described in this scenario? - Answer accountable
care organization (ACO)
Which type of healthcare financing includes savings options such as a health savings account or
a health reimbursement account? - Answer consumer-driven health plan
health insurance marketplace - Answer system established to facilitate the purchase of
health insurance in organized markets (also referred to as health insurance exchanges)
consumerism - Answer the trend of patients increasingly acting as consumers who make
informed choices about their healthcare services based on quality, cost, and other factors
Radio Frequency Identification (RFID) - Answer a technology used in healthcare to track and
manage medical equipment, pharmaceuticals, and sometimes patient information, using radio
waves for automatic identification and tracking
Information Technology (IT) - Answer the use of digital technologies, like EHRs and
telemedicine, for managing patient information, delivering healthcare services, and supporting
decision-making processes
Affordable Care Act (ACA) - Answer Enacted in 2010, the ACA aimed to increase the quality
and affordability of health insurance. It expanded Medicaid, created health insurance
marketplaces, and implemented regulations prohibiting insurers from denying coverage due to
pre-existing conditions
Food and Drug Administration Safety and Innovation Act (FDASIA) - Answer Enacted in 2012,
FDASIA aimed to enhance the regulation of medical products by the FDA. It included provisions
to expedite the review of new drugs and medical devices, improve drug safety monitoring, and
strengthen the FDA's authority to regulate drug-compounding pharmacies.
Health Information Technology for Economic and Clinical Health Act (HITECH Act) - Answer
Enacted in 2009, the HITECH Act promotes the adoption and meaningful use of electronic
health records (EHRs) and strengthens HIPAA privacy and security provisions related to
electronic health information
Consolidated Omnibus Budget Reconciliation Act (COBRA) - Answer enacted in 1985,
requires employers with 20 or more employees to offer temporary continuation of health
