ACHE
Practice Exam 2026 | Board of Governors Exam (BOG)
Questions, Answers & Detailed Rationales | FACHE Study Guide
This Resource Includes
➢ACHE Board of Governors Exam practice questions
➢Answers with detailed rationales
➢Healthcare management and leadership review
, ACHE Practice Exam 2026 | Board of Governors
Exam (BOG) Questions, Answers & Detailed
Rationales | FACHE Study Guide
1. As a condition of participation, the Centers for Medicare &
Medicaid Services (CMS) requires a hospital to have an organized
medical staff that operates under
A. privileges granted to individual practitioners.
B. criteria set forth by the hospital quality committee.
C. contractual obligations set by CMS.
D. bylaws approved by the governing body.
Correct Answer: D
Rationale: CMS Conditions of Participation require hospitals to have an
organized medical staff that operates under bylaws approved by the
governing body. The medical staff bylaws establish the framework for
self-governance, credentialing, privileging, and peer review. While
individual practitioners are granted privileges (A), and quality
committees set criteria (B), the fundamental requirement is that the
medical staff operates under bylaws approved by the governing body.
CMS does not set contractual obligations directly with medical staff (C).
,2. A member of the American College of Healthcare Executives (ACHE)
has reasonable grounds to believe that another member has violated
the ACHE Code of Ethics. The member has the duty and obligation to
A. refer the member to the ACHE Board of Governors.
B. counsel the member.
C. refer the member to their organization's chief executive officer.
D. report the member to the ACHE Ethics Committee.
Correct Answer: D
Rationale: The ACHE Code of Ethics requires members who have
reasonable grounds to believe another member has violated the Code
to report the violation to the ACHE Ethics Committee. This is a
professional obligation to maintain the integrity of the profession.
While counseling a colleague (B) may be appropriate in some situations,
the formal duty when a violation is suspected is to report it to the
Ethics Committee. The Board of Governors (A) is not the initial
reporting body, and the organization's CEO (C) is not the appropriate
recipient for ACHE Code violations.
3. Which of the following documents specifically presents financial
projections for a five-year period?
, A. business plan
B. communication plan
C. Strategic plan
D. pro forma
Correct Answer: D
Rationale: A pro forma financial statement presents projected financial
information, typically for a five-year period. Pro formas are used to
forecast revenue, expenses, and profitability for future periods. A
business plan (A) may include financial projections but is broader in
scope. A communication plan (B) addresses messaging and stakeholder
communication. A strategic plan (C) focuses on long-term
organizational direction and goals, not specifically financial projections.
4. Which of the following methods of cost evaluation requires
discounting to compare at least two different information technology
systems over time?
A. total cost of ownership (TCO) analysis
B. cost-utility analysis
C. sensitivity analysis
D. lifecycle analysis
Correct Answer: D
Practice Exam 2026 | Board of Governors Exam (BOG)
Questions, Answers & Detailed Rationales | FACHE Study Guide
This Resource Includes
➢ACHE Board of Governors Exam practice questions
➢Answers with detailed rationales
➢Healthcare management and leadership review
, ACHE Practice Exam 2026 | Board of Governors
Exam (BOG) Questions, Answers & Detailed
Rationales | FACHE Study Guide
1. As a condition of participation, the Centers for Medicare &
Medicaid Services (CMS) requires a hospital to have an organized
medical staff that operates under
A. privileges granted to individual practitioners.
B. criteria set forth by the hospital quality committee.
C. contractual obligations set by CMS.
D. bylaws approved by the governing body.
Correct Answer: D
Rationale: CMS Conditions of Participation require hospitals to have an
organized medical staff that operates under bylaws approved by the
governing body. The medical staff bylaws establish the framework for
self-governance, credentialing, privileging, and peer review. While
individual practitioners are granted privileges (A), and quality
committees set criteria (B), the fundamental requirement is that the
medical staff operates under bylaws approved by the governing body.
CMS does not set contractual obligations directly with medical staff (C).
,2. A member of the American College of Healthcare Executives (ACHE)
has reasonable grounds to believe that another member has violated
the ACHE Code of Ethics. The member has the duty and obligation to
A. refer the member to the ACHE Board of Governors.
B. counsel the member.
C. refer the member to their organization's chief executive officer.
D. report the member to the ACHE Ethics Committee.
Correct Answer: D
Rationale: The ACHE Code of Ethics requires members who have
reasonable grounds to believe another member has violated the Code
to report the violation to the ACHE Ethics Committee. This is a
professional obligation to maintain the integrity of the profession.
While counseling a colleague (B) may be appropriate in some situations,
the formal duty when a violation is suspected is to report it to the
Ethics Committee. The Board of Governors (A) is not the initial
reporting body, and the organization's CEO (C) is not the appropriate
recipient for ACHE Code violations.
3. Which of the following documents specifically presents financial
projections for a five-year period?
, A. business plan
B. communication plan
C. Strategic plan
D. pro forma
Correct Answer: D
Rationale: A pro forma financial statement presents projected financial
information, typically for a five-year period. Pro formas are used to
forecast revenue, expenses, and profitability for future periods. A
business plan (A) may include financial projections but is broader in
scope. A communication plan (B) addresses messaging and stakeholder
communication. A strategic plan (C) focuses on long-term
organizational direction and goals, not specifically financial projections.
4. Which of the following methods of cost evaluation requires
discounting to compare at least two different information technology
systems over time?
A. total cost of ownership (TCO) analysis
B. cost-utility analysis
C. sensitivity analysis
D. lifecycle analysis
Correct Answer: D
