ACHE BOG Sample Test with correct answers 2024

According to the Code of Ethics, one way executives can avoid or minimize negative implications of conflict of interest is: a) develop a PR plan to address conflict of interest scenarios b) not participate in specific decisions where conflict may exist c) ensure members submit annual holdings for inspection d) make the conflict known to those in superior positions - answers-D The principles of quality improvement require that executives change their management philosophy from: A) finding fault with employees to finding problems with processes B) finding fault with employees to involving them in the improvement of processes C) focusing on enhancing inspection techniques to focusing on variance D) focusing on employee's roles to focusing on process outcomes - answers-A What type of problem arises when an executive knowingly allows organization to continue in double billing A) an ethical issues but may not be grounds for dismissal is policy is unclear B) an actual conflict of interest even absent a direct economic benefit to executive C) an ethical problem for the employee if the executive receives direct economic benefit D) an ethical problem if it clearly violates state of federal law - answers-B Which of the following is a unit of measure commonly used to determine physicians' clinical productivity A) RVU B) CMS C) IPO D) CPU - answers-A Which of the following 3rd party reimbursement methods provides the largest incentive for the provider to reduce costs A) charge-based B) cost-based C) prospective payment D) per diem - answers-C Statements of earnings, financial positions, changes in financial position and retained earnings are required to be submitted yearly by all A) publicly owned HCOs B) privately owned HCOs C) government owned HCOs D) faith-based owned HCOs - answers-A Which of the following is an example of a capital expenditure A) land purchased for resale B) surgical equipment with a useful life of 6mo C) a building with a useful life os 20 yrs D) medical supplies used in patient care - answers-C What is the correct order of stages of accomplishing org change A) identifying, planning, implementing, evaluating B) planning, identifying, evaluating, implementation C) evaluation, planning, implementation, identifying D) planning, evaluating, identifying, implementation - answers-A Boards make better decisions if they use information that is A) readily available on their website B) generated from computer studies of departmental activity reports C) summarized in graphs D) focused on measurable outcomes of service quality and economic vitality - answers-D The central role of the HCO board includes all of the following except 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, hiring, support and reward of the CEO - answers-C The first role of the governing body is to: A) manage inputs of the HCO to achieve outputs 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 - answers-C Internal members of the healthcare organization governing body: A) serve on an ad HCO basis and are rarely voting members B) are kept to a minimum due to confidentiality concerns C) often include the CEO, medical director and CFO D) often include the executive staff in planning and information management - answers-C In assessing the advantages of using a focus group over a survey to evaluate a program, one could say 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 in NOT important - answers-B From a marketing point of view, the development of standards, clinical pathways, clinical guidelines, and protocols can all be viewed as efforts to deal with whic unique aspect of service delivery: A) inseparability B) intangibility C) heterogeneity (variation) D) perishability - answers-C What purpose to market plans fulfill for the HCO A) provide a business plan as a subset of the marketing plan B) present general goals for the organization to attain in 3-5 yrs C) develop promotion methods to be used in obtaining HCO objectives D) provide specific objectives for utilization attainment the next fiscal year - answers-D Five functions of marketing are: A) identifying markets, promoting the HCO, recruiting providers, managing external relationships, patient selection B) identifying markets, health promotion, managing external relationships, patient section, attracting capable workers C) identifying markets, promoting the HCO, managing external relationships, convincing patients to select the HCO, attracting capable workers D) identifying markets, promoting the HCO, managing external relationships, strategic planning, physician recruitment - answers-C Forecasting need for HR by focusing on specific position openings that are likely to occur and using these for planning is called: A) demand-pull B) supply-push C) succession analysis D) transition matrix - answers-A A HCO should use which of the following sequential processes to help establish HR objectives and policies A) analyze the current HR situation, forecast demand, reconcile budget, forecast supply B) design recruitment and selection activities, develop a comp plan, establish appraisal systems C) determine best job structure, perform job evaluation, establish training and development plan D) conduct job analysis, determine best job structure, establish HR information system - answers-A Probability models that forecast the internal flow of employees from one job category to another us a: A) graphic rating approach B) supply-push approach C) transition matrix D) curriculum path - answers-C Forecasting the internal supply of employees as they move from their current jobs to other through promotion, lateral moves, and termination is called: A) graphic rating approach B) supply-push C) demand-pull D) rating scale method - answers-B Which of the following describes the conflict management strategy that would have the most immediate effect on reducing conflict behavior? A) Imposition of formal authority to resolve or suppress conflict B) Implementation of substantial, super-ordinate goals that require cooperation among units C) rotation of members of one unit into another unit D) provision of intergroup training tat requires listing of perceptions and identifying differences - answers-A Multi-rater assessment (360 degree feedback) of managers in healthcare organizations is best used: A) in the development of a specific action plan by appraises B) as part of a training or coaching session C) as part of the performance appraisal system of the organization D) when the appraisers are held accountable for their ratings - answers-A Behaviorally anchored rating scales (BARS) for specific jobs can be: A) used to identify components of job behaviors B) developed in a short period of time C) Used for evaluation but not for the employee development D) subjective on some scale items - answers-A If the amount of charity care increased from one reporting period to the next, which of the following would occur? A) provision for bad debts would increase B) unrestricted net asset would increase C) unrestricted net assets would neither increase nor decrease D) unrestricted net assets would decrease - answers-D Which would be a reasonable basis on which to allocate administrative overhead costs? A) Salaries B) Amount of supplies needed C) Hours worked D) Square footage - answers-B The effective costs of debt is roughly the same for both not-for-profit and investor-owned organizations because: A) both types of organizations can issue tax-exempt debt B) the interest rate is the same on both tax-exempt and regular debt C) neither type of organization can issue tax-exempt debt D) the tax deductibility of interest for the investor-owned firm offsets the lower coupon rate on tax-exempt debt - answers-D The master site plan for a HCO A) describes future facility needs (either renovation or new construction) necessary to meet strategic and operational needs B) provides detailed design documents for all construction programs along with specific costs for each project C) must be prepared by an outside planning or architectural firm to ensure sufficient objectivity D) is necessary to ensure that the organization complies with CON and other regulatory requirements - answers-A Which of the following statements best describes the statistics budget? A) it combines volume and expense rates to forecast costs B) it is a profit forecast for the coming year C) it combines volume and reimbursement data to forecast revenues D) it provides input data for other budgets - answers-D All areas of healthcare facilities are subject to safety, convenience and other regulatory requirements as dictated by the state life safety codes, JCAHO, OSHA, the State fire marshal etc,. Which area of the facility typically has the highest standards? A) the energy plant B) highly used public areas C) areas under construction D) patient care areas - answers-D The best way to reduce/contain the costs of distributing supplies throughout the organization is to: A) purchase the most modern supply distribution system for your organization B) minimize the number of times an item is handled from the time it is received by the organization to the time it is used C) utilize a computerized materials management system that allows the organization to minimize inventory levels D) negotiate a contract with an outside vendor who specializes in supply distribution to provide these services - answers-B The objective of maintenance and repair services is to keep the facility and its equipment operating like new. this goal is best achieved by emphasizing: A) prevention B) efficiency C) productivity D) safety - answers-A The facility's plan for a HCO may include plans for renovation and new construction, energy requirements, acquisition of new property, financing options, etc. However, the facility plan begins with an estimate of each service or department's A) operational needs B) parking needs C) staffing needs D) equipment needs - answers-A An important management principle that should guide the development of information systems in healthcare organizations is to: A) treat information as an essential organizational resource B) delegate all decisions about information technology to technical specialists C) employ consultants to set priorities for systems to be developed D) always buy the newest system available to avoid technical obsolescence - answers-A Which of the following is a major priority for system development in the managed care environment? A) development of enterprise-wide computer networks B) development of repositories of computerized patient records C) development of operational inpatient systems D) development of strategic decision support systems - answers-C which of the following is considered the best source of information to help HCO improve its existing services? A) ongoing patient and internal customer satisfaction surveys B) focus groups to gather information and statistics from non-patients C) telephonic surveys of anyone who may decide to use the HCO D)weekly meetings with staff members to determine the HCOs deficiencies - answers-D which of the following is an example of an asset A) accounts payable B) accrued employee benefits C) property plant and equipment D) unrealized gain - answers-C which statement about short-term debt reduces liquidity A) increased use of short term debt reduces liquidity B) short term debt provides greater certainty about interest costs over time C) the interest rates for short term debt area typically higher than interest rates for long term debt D) an organization that relies on short term debt replaces the need for working capital - answers-A which of the following is likely to provide useful information for evaluating the profitability of a hospital's managed care business? A) payer mix B) fixed C) contract terms D) changes - answers-D a master patient index (MPI) can best be described as A) a relational database containing all identification numbers assigned to patients B) a system for converting SS# to medical records #s C) a system for converting MR #s to patient account Numbers D) a longitudinal record for all patient encounters for a fixed period of time - answers-A A typical use of the internet by HCOs is to A) deliver educational programs to employees B) provide medical staff with electronic access to patient records C) advertise services available to the community D) communicate financial information to business units of the organization - answers-C The best way to facilitate information system integration within an HCO is to A) centralize all computer activities B) use computer equipment from only one manufacturer C) use computer software from only one vendor D) standardize data definitions and data structures - answers-D Which of the following is a developing technology that will help control unauthorized access to computerized information A) optical scanners B) biometric access control devices C) wireless terminals D) high speed modems - answers-B In negotiating a contract for an information system, healthcare organizations should A) form a negotiating team and utilize legal council B) use the standard contract provided y the vendor C) employ a consultant from among a list provided by the vendor D) use a cost plus contract to maximize flexibility in system design - answers-A Which of the following is the most important factor to consider in evaluating vendor software packages? A) size of the vendors marketing staff B) ability of the software to interface with existing systems C) programming language used to write the software D) geographic location of the vendors corporate headquarters - answers-B The CIO for a HCO is typically responsible for which of the following functions A) Information Systems and finance B) medical records and patients registration C) telecommunications and PR D) Information systems and telecommunications - answers-D In selecting an Information system a consultant can be best used to A) chair the selection committee B) provide technical information and outside perspectives C) make the final selection decision D) handle all communication and prospective vendors - answers-B The IT steering committee for an HCO should perform which of the following duties A) IT planning, selection of software, and development of related organization policies B) selection and supervision of key IT personnel C) negotiations of contracts with vendors D) design and development of the IT systems software - answers-A All of the following are primary functions of the IT department except A) ensuring the integrity,quality and security of data B) archiving and retrieving data C) training and supporting users D) utilizing information for operational decision making - answers-D IT departments most often utilize which of the following methods to ensure confidentiality A) issue security codes and limit access to the system B) centralize access to the computer system C) do not allow physician and vendor access to the system D) monitor and audit all entries into the system - answers-A Who has the primary responsibility to assure and maintain the integrity and security of electronic data in an HCO A) the IT steering committee B) the IT department C) the CIO D) the Safety and Security department - answers-B An efficient Formulary and Therapeutics Committee in many hospitals evaluates all except the following A) symptoms and adverse reactions B) patients current medication effectiveness C) contraindications D) specific drugs in terms of appropriateness to caseload - answers-B HCOs often utilize special purpose software which allows rapid access to large archives of integrated data to assist management I. Making decisions. This is typically referred to as an A) System analysis program B) report writer C) decision matrix management tool D) executive decision making support system - answers-D Which of the following would represent the most common cause of adverse drug events (ADE). A) lack of standardization B) lack of knowledge of drug C) preparation errors D) transcription errors - answers-B What is the primary advantage of the corporate form of organization for a healthcare provider A) it exists by virtue of a statute providing for its formation B) it has powers granted to it by its charter C) its continued existence is not affected by death or disability of owner D) it has limited liability - answers-D Law and tradition have established basic criteria for healthcare governing boards. Our criteria is that A) all members agree to receive care at the governed organization B) members provide a specified amount of financial support C) the actions of the board are reasonable and prudent D) the board must meet a minimum of two times each year - answers-C Continuous quality improvement assumes that A) achievement be rewarded B) there is direction from top management C) there is no upper limit to excellence D) interconnected work teams are in place - answers-C Which of the following best describes the responsibility of a hospital with an ED when a person comes to the ED for examination and treatment A) the hospital must admit the patient for observation and treatment if an emergency condition exists B) the hospital must provide an appropriate medical screening to determine whether an emergency condition exists, and if so, stabilize the patient C) the hospital may inquire as to the individual's method of payment or insurance status prior to rendering service D) if the individual is hospital must transfer the patient to the nearest public hospital designated for medically indigent patients - answers-B What was the first major law to have a significant impact on individual privacy in the workplace A) the civil rights act B) the fair credit reporting act C) polygraph protection act D) privacy act - answers-A How does a physician self referral or Stark Law apply to Medicare payments A) the law applies to private party insurance and does not apply to Medicare payments B) it establishes an additional payment to normal Medicare payment fees due to the added complexity of referrals C) It allows a claim to be filed with Medicare for a service provided by the physician with a financial interest in DHS D) it prohibits a provider from presenting a claim to Medicare or any person or entity for a prohibited DHS referral - answers-D Which of the following is not an advantage of an effective corporate compliance program for an HCO A) initiating immediate and appropriate corrective actions B) costs of implementation and operations C) developing processes to allow employees to report potential problems D) identifying and preventing criminal and unethical conduct - answers-B a privilege of confidentiality exists in a physician-patient relationship when the physician-acquired Information is A) documented in the patient record B) substantiated by the nurse C) related to the care and treatment of the patient D) confirmed and documented by the patient - answers-C Participating providers in the federal Medicare program must A) be accredited by JCAHO B) serve Medicaid beneficiaries C) meet the conditions of participation D) be in compliance with the CON laws - answers-C Which physician organization is responsible for accrediting residency training programs A) ACGME B) AAMC C) CAT D) BPQA - answers-A Which of the following are important aspects to consider when establishing a JV A) JVs involve independent management teams and independent governance structures B) JVs involve capital investment by all parties, can be difficult to dissolve, and are usually expected to be permanent C) JVs are managed like an internal organization and are usually renegotiated annually D) JVs are developed to acquire portions of a parent organization and are generally accepted as reversable - answers-B A balanced scorecard is a set of performance measurements used to A) assess patient satisfaction B) ensure the organization does not exceed one performance metric at the expense of another C) provide a scorecard for annual performance monitoring D) gather and monitor financial data - answers-B What is the correct order of Maslow's Hierarchy of Needs A) physiological, safety, esteem, belonging, self-actualization B) safety , physiological, belonging , esteem, self-actualization C) physiological, safety, belonging, esteem, self-actualization D), safety, esteem, physiological , belonging, self-actualization - answers-C Communication Health Intranet Networks (CHINs) are developed for what purpose A) to provide a platform for an electronic medical records B) to provide a way to disseminate community-level health data C) to provide an inexpensive way to share health information D) to provide a community-based hub for sharing health information - answers-D Which organizational theory is illustrated by governing activities with explicit and specific procedures, arranging offices in a hierarchical fashion, and selecting candidates on the basis of technical competency A) bureaucratic B) contingency C) institutional D) technological - answers-A In planning for future community health resources, it is important to understand population health needs. Which ethnic category tends to proportionally use physician services the most? A) African-American B) Asian C) Latino D) white - answers-D Which of the following limitations would cause a hospital OB unit to see no change in volume over a four year period A) organizational B) market C) financial D) clinical - answers-B According to the CMS Conditions of Participation, under what circumstances, if any, is it permissible to deny a patient access to his/her medical record A) the Information contains psychotherapy notes B) the Request comes from the patient's personal representative instead of the patient C) the provider organization will incur significant costs in copying and forwarding the records D) it is new permissible to deny access - answers-A The overall goal of HIPPA Act of 1996 is A) to ensure privacy and confidentiality of medical records B) to standardize the sharing of clinical and administrative Information C) to strengthen the healthcare data security standards and practices D) to improve portability and continuity of health insurance, and combat fraud - answers-D Congress enacted Stark II to prohibit which of the following A) a physician or an immediate family member from referring a patient to an entity with which they have a financial relationship B) hospitals and physicians from partnering to build in patient acute care facilities C) hospitals and physicians from JVing in offering OP imaging D) a hospital from referring a patient to a wholly owned entity - answers-A Which of the following activities should be performed by the Board of Directors A) calculating patient care fees B) determining staffing patterns C) recruiting new medical staff D) hiring the CEO - answers-D Performance improvement teams should consist of A) experts in process management B) members from the involved Microsystems C) middle managers with experience D) physician and other users - answers-B The 4 important aspects of clinical support services (CSS) are technical quality, patient satisfaction, continuity or integration and: A) cost-benefit analysis B) outcome C) appropriateness D) health promotion - answers-C A bar chart format, with the items rank ordered on a dependent variable such as cost, profit, or satisfaction, that examines the components of a problem in terms of their contribution to it is known as a A) a run chart B) a frequency table C) Pareto analysis D) deeming cycle - answers-C Governing boards are typically more effective at what size A) 10-15 B) 15-20 C) 5-10 D) 25+ - answers-A What type of review involves evaluation of management staff by their superiors, subordinates, and internal/external customers A) annual review B) 360 degree review C) competency review D) peer review - answers-B The role of a non-profit HCO's governing board includes all of the following except: A) delineate clinical privileges B) ensuring quality healthcare is delivered C) overseeing day to day operations D) setting broad institutional policy - answers-C Medicare Conditions of Participation for hospitals require that a prescribing practitioner authenticate verbal orders within ______, if not defined by the State A) 24 hrs B) 48 hrs C) 7 days D) 30 days - answers-B Cost accounting is an important tool that allows the CFO to A) meeting JCAHO fiscal requirements B) ensure supplies are competitively purchased C) determine the actual cost of providing patient care D) improve revenue cycle returns - answers-C What is true about the relationship between acute care hospitals and long term care organizations A) Hospitals and patients frequently have difficulty arranging for nursing home care services B) hospitals generally don't want to refer patients to SNFs since the revenue must be shared C) SNFs generally do not want to refer patients to hospitals since this interferes with State LOS requirements D) SNFs generally thought to be superior to hospitals for chronic disease management - answers-A The 1st step in any strategic management scenario is to A) develop "what if" scenarios B) gather Information from as many sources possible C) develop courses of action that fit within future organizational resources D) conduct a make/buy analysis - answers-B Which of the following is the least serious limitation of decision analysis A) oversimplification if the problem B) inadequate data C) the decision makers values D) the statistical model - answers-D In a unionized organization what is the most effective contract dispute resolution finalization alternative A) mediation B) corporate campaigns C) arbitration D) strike - answers-C What does a liquidity ratio measure A) a firm's ability to meet its current obligations in a timely manner B) size of dividends to be paid to shareholders C) the percent of total funds provided by creditors D) days in AR - answers-A The real value of financial statements lies in the fact they can be used to help A) predict the firms financial condition B) compute total margin vs periodic gains C) relate the industry average new product/loss over time D) understand that a large portion of a hospitals net income may come from non-operating gains - answers-A Facing struggle such as declining profit margins, nonprofit HCOs have become more dependent on what source of financing capital needs A) philanthropy B) bond financing C) capital leases D) operational leases - answers-A You work for a county organization that has decided to issue bonds to fund a new building. What type of bond would be sold on behalf of your organization A) mortgage bonds B) corporate bonds C) capital bonds D) municipal bonds - answers-D On a balance sheet, what does the different between total current assets and total current liabilities indicate A) cash on hand B) net working capital C) liquid assets D) equity - answers-B How should supervisors behave toward informal leaders in the organization A) maintain a positive attitude toward informal leaders B) ensure informal leaders remain st a moderately low status within the work group C) grant informal leaders occasional favors D) pass informs on to informal leaders before giving it to formal leaders - answers-A Budgets for new capital expenditures include requests for A) infrastructure B) wage adjustments C) new employee insurance plans D) new gain sharing agreements with physicians - answers-A The Capital Asset Pricing Model (CAPM), an equilibrium model, describes the relationship between which of the following A) market risk and required rate of return B) expected rate of return and actual rate of return C) price and market risk D) expected rate of return and required rate of return - answers-A What is the most common operating indicator used to measure overall staff productivity A) full-time equivalents pr occupied bed B) total salaries and benefits as a percent of operating expenses C) FTEs per adjusted ADC D) nursing salary and benefits as a percentages total expenses - answers-C Determining whether the help desk function is effective and whether projects are well managed are examples of measuring an information system department's A) strategic competency B) political competency C) vendor competency D) operational competency - answers-D When seeking information about fixed assets, payroll, regulatory and tax reporting, and accounts payable, an administrator will access what information management system A) physician practice management B) patient and administration management C) home health management D) general financial management - answers-D The main role of the board is A) selecting the CEO B) overseeing operations C) setting institutional policy D) running the institution in the CEO's absence - answers-C Which of the following is not considered part of the labor budget A) staff salaries B) hourly wages C) employees benefits D) contract staff expenses - answers-D Health Savings Accounts, HSAs, were established through which law A) Consolidated Omnibus Budget Reconciliation Act B) Medicare Prescription Drug Improvement and Modernization Act C) Health Insurance Portability and Accountability Act D) Americans with Disabilities Act - answers-B The only law that mandates a particular type of payment for time not worked is A) FMLA B) EMTALA C) ADA D) CMS - answers-A Which position is included in the NLRB Bargaining rules A) physician independent contractor B) nurse supervisors C) pharmacists D) certified accountant - answers-C There were eight bargaining units (employees) identified in NLRA v AHA. They included registered nurses, physicians, all other professionals, all technical employees, all skilled maintenance employees, all business office clerical employees, all guards and all other nonprofessional employees. What years was this passed? A) 1935 B) 1976 C) 1947 D) 1991 - answers-D One method of evaluating relative value of different jobs is A) Broad banding B) gant charting C) scalability D) benchmarking - answers-D When discharging a patient from a hospital the institution can be held liable A) for providing post-discharge medication for ongoing care B) if a patient uses public transportation and is involved in an accident resulting in injuries C) for abandoning the patient if the patient is in need of further medical care D) when patients are transferred to less costly setting where adequate care can be provided - answers-C Under EMTALA A) benefits on,y those who are uninsured and unable to pay B) originated due to concerns of patient dumping C) excludes women in labor D) does not require facility to forward medical records to receiving facility - answers-B Which of the following HMO models exerts maximum control over physician providers A) closed panel B) open panel C) network D) point of service - answers-A What is generally prohibited by Stark II Law A) a hospital paying for admissions B) a physician receiving payment from another physician for referral C) a physician referring a patient to a service owned by the physician D) a hospital referring a patient to its own HH agency - answers-C Under HIPAA, congress required the Secretary of HHS to adopt standards to : A) create pay for performance standards for CMS B) provide for standard data elements and code sets C) requires electronic record by 2010 D) publish clinical outcomes on Medicare patients - answers-B Which is the Shewhart process for PI A) plan, check, do, Act B) plan do check act C) analyze, formulate, implement, evaluate D) analyze, formulate, evaluate ,implement - answers-B Which of the do,owing are dimensions of a balanced scorecard A) financial performance B) new technology C) competitor activity D) board/management team - answers-A The CEO of a 125 bed HCO realizes her hospital is surrounded by 3 similar institutions and determines her institution has no competitive position. Which strategy should she pursue? A) target many market segments based on demographics B) prioritize market segments and heavily promote to key groups C) advertise broadly to increase general awareness D) recruit more physicians to admit to the institution - answers-B If the ADC on a IP surgical unit is 19 and the productive hrs/pt day is 7.2 and the productivity % calculation is 8.5, how many FTEs should be budgeted for core staffing? A) 24 B) 26 C) 30 D) 35 - answers-A What in the revenue cycle process is a major impediment to prompt payment? A) payment receipt and posting B) claims submission C) poor financial counseling D) claim denial - answers-D When evaluating capital budget performance what is the best indicator of operating leverage? A) debt to capitalization ratio B) expense ratio C) average age of plant D) depreciation - answers-B An analysis of a proposed capital investment typically includes all of the following except: A) cost of capital B) cash flow projections C) liquidity ratio D) risk assessment - answers-C Revenue cycle billing management typically includes what broad activities? A) billing collections for IP, OP and Surgical Services B) claims processing, denial management, and claims payment C) processing accounts payable, denial management, and billing fo OP services D) activities before services are rendered, activities that occur simultaneously with services, activities after services are rendered - answers-D Who gives final approval of the medical staff bylaws? A) the board B) the medical staff C) the board's executive committee D) the MEC - answers-A Which of the following courts has jurisdiction to hear cases involving such matters as surgery for an incompetent person or the IVC of mentally ill persons? A) family court B) juvenile court C) appellate court D) probate court - answers-D To guard against the loss of assets an administrator should do which of the following A) encourage off site storage of equipment B) allow directors to determine the frequency of asset inventories C) ensure that billing and collections are handled by the same team D) implement detailed procedures, risk control, and annual outside audits - answers-D A food service director is assigned responsibility for EVS. This is an example of A) redundant management B) matrix management C) oversight management D) service line management - answers-B Which of the following management styles allows the highest subordinate freedoms and lowest personal authority A) autocratic B) participative C) democratic D) laissez-faire - answers-D Under the regulations of the IRS, a tax exempt entity A) must provide benefit to those institutions operating or affiliated with the entity B) must limit the benefit to any private individual C) must provide a public benefit to the community D) can minimize penalties if it limits private benefits to >50% - answers-C Network of hospitals, physicians and other healthcare providers that provide services for a negotiated fee are called: A) HMO B) PSO C) PPO D) MSO - answers-C The practice of a provider seeing a patient more often than medically necessary primarily to increase revenue through an increase number of services is called A) cost shifting B) buffering C) turfing D) churning - answers-D Which of the following regulations exempted self-funded employer-sponsored health insurance plans from state insurance regulation? A) BBA B) TEFRA C) COBRA D) ERISA - answers-D Hospitals that were acquired by hospital systems generally have which characteristic? A) they operate at a net gain B) they incur higher debt levels C) they are located in markets with smaller numbers of HMO's D) they are younger not for profit hospitals with higher occupied beds - answers-B Hospital is known for their ability to attract and retain nurses despite the significant nursing shortages are called A) professional excellence center B) shared governance facilities C) magnet hospitals D) baldridge winners - answers-C The reimbursement method that was first adopted by Medicare and later by third-party payers is known as A) ICD9 B) RBRVS C) RUG D) DRG - answers-D The principal goal of a health service organization's hospital model is A) security B) disease treatment C) quality of life D) comfort - answers-B Which segment of the healthcare delivery system is exclusively dedicated to terminally ill patients A) Trauma centers B) tertiary care centers C) hospice programs D) pastoral care services - answers-C Emerging physician organizations are usually private for-profit corporations. In order to gain not-for-profit status such organizations must A) give 50% of profits to charity B) have a community dominated board of governments C) create a partnership with a not for profit hospital D) Minimize double taxation to members by passing proceeds directly to the members - answers-B Which of the following is a key responsibilities of a governing board A) recruit and select the CEO B) operationalize the organization strategic plan C) assist the CEO with evaluation of the rest of the management team D) develop a physician recruitment plan - answers-A Which of the following is intended to reduce cost improve quality by giving access to financial, clinical and administrative information A) CHIN B) LAHN C) VPHN D) HFTN - answers-A When introducing a new information technology system to a healthcare organization resistance can be effectively addressed by A) eliminating social groups that appear within the organization B) employing a policy mandated used throughout the organization C) focusing on the system users and being responsive to their needs D) The system changes to allow staff to see the cost savings - answers-C Which of the following would be a DISCRETE measure of continuous improvement A) gender B) weight C) height D) temperature - answers-A The qui tam provision of the federal false claims act is a statute aimed at those who commit fraud against the government A) have minimal impact in the healthcare industry B) prohibits the citizen from sharing the recovered funds C) allows any citizen to bring suit in the name of the United States D) Can be generated from the media reports - answers-C Which of the following activities is illegal for tax exempt healthcare organizations A) allowing an employee to testify before a legislative body regarding pending decisions that would affect the organization B) lobbying members of Congress for healthcare reform C) endorsing a candidate for public office D) Sponsoring a political action committee and a for-profit subsidiary - answers-C Which statement best describes the status of health organizations under antitrust law? A) The medical staff appointments are exempt from antitrust litigation B) they are subject to antitrust law relative to price-fixing and boycotts C) they are exempt from most anti-trust principles because they are charitable D) they are subject to antitrust law just as any other industry - answers-D Which of the following best summarizes the legal status of the physician-patient relationship? A) it is based on an expressed or implied contract, from which certain elements of duty arise B) it is based on acceptance of remuneration for services rendered unless chair to care is designated C) it has no legal status and that it is a private business relationship, unless the patient is a Medicare beneficiary D) it is governed by the hospital or health systems medical staff bylaws - answers-A A major advantage of capitation for primary care gate keepers is that it A) guarantees primary care physicians will make more money than they ever made in the fee-for-service environment B) encourages primary care physicians to be more judicious in their referrals to specialists C) elevate the primary care physician's status in the eyes of his patients D) Makes it easier for health plans to collect utilization data from physicians - answers-B Bundled pricing (paying a single fee for all services) for such services as total hip replacement or coronary artery bypass surgery effects physician-hospital relationships by: A) reducing the need to devote administrative effort to measuring outcomes and performance indicators B) putting the physician and hospital at odds with one another over the distribution of fees C) promoting efforts to collaborate and integrate efforts to provide for efficient care D) guaranteeing that only top-quality physicians will be allowed to participate in such programs - answers-C A healthcare executive is serving on the board of a community mental health center. The mental health center board is evaluating proposals for inpatient psychiatric services. Proposals were received from the executive's facility and other facilities. The healthcare executive should: A) participate in the discussion and the vote if the benefit to the community outweigh the possible conflicts of interest B) not participate in the discussion or the vote C) declare a potential conflict of interest an excuse herself from participating in both the discussion and a vote D) participate in the discussion but not the vote on the proposals - answers-D What is the primary reason for conducting continuing education for staff A) staff will think the organization cares about them B) there are significant short-term operating efficiencies C) it is a long-term commitment to the patient D) The Joint Commission and the NCQA require it - answers-C What is the first effect of demographic trends on a health service organizations strategic planning process A) Appraising financing sources and payment levels for programs B) establishing future staff by type in estimating staffing levels C) determining the locations of delivery units for the next period D) Determining the range and types of services to be offered - answers-D Managers who use their authority to greatly enhance their salaries, benefits, and accoutrements of office may be causing a disbenefit to patients. This personal aggrandizement is known as self-dealing and can: A) Be seen mostly in for profit HMOs B) occur only in for profit organizations C) occur in any health service organization D) be seen only in non-health services field charities - answers-C The primary stimuli that causes educational programs to be made available to and required of staff are the A) legal demand resulting from medical malpractice B) regulations issued by government at all levels C) demands and expectations of stakeholders D) Increasingly stringent expectations of consumers - answers-C Research in behavioral science has consistently found that once basic needs are met, staff is motivated most A) by an incentive payment program B) only by a significant increase in salary C) by factors such as being kept informed D) when performance sets them apart from the group - answers-C Resource allocation and health service organizations involves balancing the needs of the organization, staff, and patients. However, the essential primary focus on patients can be met only if the: A) strategic planning process has been effective and thorough B) Mission and vision statements are appropriate to the task C) organizational culture makes a basic commitment to it D) Basic needs of the organization and staff are addressed first - answers-D Which of the following best describes the healthcare organization's recognize service reputation that has been earned over the long-term within its market A) soft assets B) market share C) brand equity D) Community perception - answers-C Which technique would provide the most beneficial information to a healthcare organization about customer satisfaction A) Direct mail surveys B) mall intercepts C) Focus groups D) Competitor analysis - answers-A You have been assigned to develop a marketing strategy for your organization. The most important issue to consider is that the marketing strategy be A) broad-based B) customer centered C) accessible on the Internet D) Short term oriented - answers-B What is the first stage in the strategic planning process A) A board retreat B) Situation analysis C) Mission statement development D) Action planning - answers-B Which of the following analyses is used in workforce planning and forecasting A) qualified inventory analysis B) Job analysis C) productivity analysis D) Ratio analysis - answers-D Which of the following techniques would play a central role in an organization being able to demonstrate equal employment compliance A) Job questionnaires B) EEOC postings in the human resource department C) Job analysis procedure D) an establish complaint process - answers-C An organization has made a commitment to begin training employees to fill anticipated job openings in upcoming years. This is an example of A) succession planning B) reengineering C) position control D) Quality improvement - answers-A Which of the following is an example of direct costs A) utility bill B) parking operations C) department service D) drug prescriptions - answers-D Healthcare organizations require the filing of annual disclosure statements on the part of board members and officers. This policy is intended to address A) inurement B) theft C) exploitation D) Incompetence - answers-A Healthcare organizations are routinely faced with accommodating competing space needs. The key considerations in resolving such issues should be based upon which of the following? A) Long range facility plan B) return on investment for each use C) prospective donors interest in the program D) board of trustee preference - answers-A Information systems management security is concerned with the policies and procedures for ensuring the security of A) Data B) software C) hardware D) firmware - answers-A A patient files a complaint relating to a negative hospital experience. The proper handling of this patient's complaint is to A) cite organizational policy B) side against the organization C) minimize the complaint D) clarified the problem - answers-D The single most important way patients can help prevent medical errors from affecting them is to A) interact with their caregivers B) research medical error rates among organizations C) read and understand consent forms D) Choose large, reputable healthcare providers - answers-A In a hospital setting, a critical pathway is best described as A) A document that focuses on efficiency and describes a standard set of activities to be performed for a defined category of patients B) A set of guidelines that focuses on identifying those decision points which should lead to the consistent provision of appropriate clinical practice C) Any attempt to standardize clinical activities based on diagnostic categories and projected outcomes D) Decision tree that focuses and physician decision making - answers-A One reason healthcare entities should document their credentialing procedures is to A) meet federal compliance mandates B) maximize medical staff understanding of the process C) minimize inconsistency and liability D) Assist with practitioner auditing - answers-C One feature that distinguishes non-integrated healthcare organizations from integrated organizations is a A) regional community vision B) widely accepted brand identity C) seamless continuum of care D) Define market image - answers-D Hospitals pursuing strategic alliances are faced with issues of vertical integration. One example of vertical integration is A) acquiring a long-term care facility B) creating a "super" physician-hospital organization C) developing a system of local hospitals D) Outsourcing laboratory services - answers-A Govern its challenges faced by fully integrated healthcare delivery systems are more complex than those faced by non-asset merged multi hospital system because: A) The components of integrated systems function in highly interdependent manner B) Multihospital systems usually have been in existence for a long period C) Multihospital systems often have an independent governance structure D) Boards of multi hospital systems have different board selection processes - answers-A The purpose of the ACHE Ethics Committee is to review and recommend action on ethical violations to which group A) executive committee B) board of governors C) Council of regents D) Membership committee - answers-B According to the ACHE Code of Ethics, what action can the ethics committee take against an affiliate after a grievance procedure has been initiated A) fine the affiliate B) Report the violation to the affiliate's employer C) issue a written reprimand to the affiliate D) Recommend expulsion of the affiliate - answers-D ACHE's Ethical Policy Statement on Ethical Issues Related to Downsizing recommends that healthcare executive should consider providing which of the following when downsizing? A) Financial aid B) Child care C) Family counseling D) Out placement assistance - answers-D According to the ACHE's Ethical Policy Statement on creating an ethical environment for employees, the organization should A) ensure maximum utilization of an employees skills and abilities B) create a working environment that provides freedom from coercion C) develop a committee that addresses employee diversity and compliance D) Provide sensitivity training to new employees during orientation - answers-B What are the three basic categories of quantitative performance measures used in conventional accounting systems A) market share, customer satisfaction, and quality B) demand, sales, and cost C) demand, cost, and output/productivity D) Services rendered, market share, and access - answers-C Under a capitated payment system, the risk sharing arrangement involves which parties A) insurers and patients B) physicians and purchasers C) hospitals and patients D) hospitals and insurers - answers-D Which concept of profitability analysis listed below is correct? A) The internal rate of return ( IRR) measuresmeasures a project's percentage of cash flow B) Net present value (NPV) is the profit ability measure that uses discounted cash flow C) The modified internal rate of return (MIRR) is a less accurate measure than a projects actual return right D) Profitability return rate (PRR) provides the most accurate measure - answers-B Which of the following must be included when determining a capital project's incremental cash flow A) opportunity costs B) cash inflows C) inflation D) The internal rate of return - answers-A The critical link that brings patients and providers together is A) marketing B) advertising C) strategic planning D) External analysis - answers-A The concept of demand management consists of A) concurrent review B) risk assessment C) disease management D) Chart review - answers-A The primary purpose of generally accepted accounting principles (GAAP) in the healthcare setting is to A) provide regulators with increased access to high-quality financial statements of organizations within their jurisdiction B) ensure that financial information that is reported to outsiders is consistent across businesses and presented in a manner that facilitates interpretation and judgments C) allow interested individuals a rapid means of collecting financial data about hospitals and managed-care organizations D) facilitate the training of accountants and other finance professionals in the fundamentals of hospital and health services accounting - answers-B The internal rate of return measures the A) Number of years to recover the original investment B) discounted future cash flows C) discount rate at which the net present value is zero D) Discount rate that the firm uses in computing the cost of capital - answers-C The statement of cash flow's is typically organized into three sections: cash flow from operations; cash flow from investing activities; and cash flow from: A) Bad debt recovery B) regulatory recapture C) financing activities D) Donations and foundation support - answers-C Which of the following combines data from a balance sheet and income statement to create a single number that facilitates easy interpretation A) Financial ratio analysis B) acid test ratio C) operating margin ratio D) Cash flow analysis - answers-A In a healthcare organization, who has ultimate fiduciary responsibility A) The chief financial officer B) board of Directors C) medical staff officers D) Senior management - answers-B Medicare DRG payment is highly dependent upon a hospitals case mix index. This index represents the average relative weight for all Medicare patients treated in a A) specific nursing unit or specialty area B) specific period C) common geographic market D) Specific facility - answers-B If CEO wanted to look at a snapshot of the financial condition of the healthcare organization, she would review which of the following A) The income statement B) The balance sheet C) retained earnings statement D) The investment portfolio - answers-B Where should charity care be shown in the healthcare organizations financial statement A) in the balance sheet B) in the statement of operations C) in the statement of changes in net assets D) In the notes to the financial statements - answers-D Which of the following is the best way to assign cost in responsibility management A) allow each department manager to be responsible for a different type of fixed cost B) allow each department manager to choose the cost that she prefers to control C) assign cost of the department manager who is responsible for making decisions about those cost D) Assigned cost equally to all managers thus allowing equal responsibility for cost - answers-C 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? A) strategic planning B) trend analysis C) situational analysis D) Survey research - answers-B A manager who six input from others prior to making a decision is engaging in which leadership style A) autocratic B) participative C) democratic D) laissez-faire - answers-B When a specialist within the organization provides a directive or state an opinion, there is recognition of that individual as an expert in the field. This is an example of what type of authority A) positional B) functional C) personal D) charismatic - answers-B Which of the following is not an example of marketing function A) promoting the organization B) convincing patients to select the organization C) managing External relationships D) reviewing organizational costs - answers-D The arrival of women for obstetric deliveries or patient flow in an emergency department can be analyzed through use of which technique A) pert charting B) stochastic modeling C) Gant charging D) Monte Carlo simulation - answers-B One approach for measuring the technical quality of clinical support services is A) patient satisfaction scores B) degree of continuity of care C) appropriateness testing D) Process review - answers-D Which financial statement is updated daily to reflect changes in assets or composition of financing A) The flash report B) The balance sheet C) The statement of operations D) The statement of cash flows - answers-B 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 A) increase market share B). Improve quality of clinical care C) improve cost of capital D) Increase in community rating - answers-C The applicability of continuous improvement in healthcare organizations assumes A) an upper limit of improvement B) The physician's perspective is dominant C) an organizational commitment D) The elimination of outliers - answers-C Which of the following is an output related performance measure A) provider productivity B) board satisfaction C) customer loyalty index D) Paid nursing hours - answers-A The thrust of antitrust legislation as applied to the healthcare field is to A) contain costs B) contain rising cost of independent single unit hospital C) Monitor the scope of health services provided in a given area D) protect the public economic interest - answers-D The primary function of an extended care unit is to provide A) post acute care services and rehabilitation oriented environment B) self care facilities for ambulatory patients C) additional facilities for geriatric cases D) More intensive nursing care for chronically ill patients - answers-A All the following are essential components of strategic planning except A) The corporate mission statement B) timetables for activity completion C) competitive analysis D). Assessment at the external environment - answers-B Which one of the following conditions must be met for human subjects to be used in medical research programs A) no suitable animal model exist for use instead of people B) The research program has to be approved by the medical staff C) research program has been approved by the governing authority D) Risk should be clearly explained and understandable language to each individual subject - answers-D Controlling the cost of accounts receivable is heavily affected by A) The Time or length of payment cycle B) The dollar amount of credit granted to individuals C) The total dollar amount of receivables carried On the books D) working capital management - answers-A Operational planning can be correctly defined as A) A function of establishing the annual budget by accumulating departmental information B) The process by which short range objectives and actions are established C) an annual process of developing, evaluating and implementing goals based on community need D) Determining the major types of services offered based on profit margin's - answers-B Short range planning is enhanced if a strategic plan has been adopted because A) potential program can be a lemonade it easily if not part of the strategic plan B) use of space has already been determined C) A frame of reference is already in place D) Operational problems can be quickly resolved - answers-C In the field of healthcare services, which of the following trends has significantly increased the need to develop more comprehensive and more systematic credentialing process is in healthcare facilities A) The increased number of independent healthcare practitioners B) expansion of governmental regulations covering the operation of healthcare facilities C) The growth of ambulatory healthcare services D) The growth of liability of healthcare facilities for malpractice by healthcare practitioners - answers-D In a sound human resources program, the primary purpose of the job classification system is to A) develop position descriptions for employees B) establish a total wage and salary administration program C) rank jobs by kind and level of work performed D) Define an effective organizational structure - answers-C Which of the following statements best defines increased productivity A) an increase in productivity occurs when the number of units of service rendered in a given year increases over the number rendered in the previous year B) an increase in productivity occurs when an increase occurs in volume or number of units of service rendered C) an increase in productivity occurs when a reduction occurs in ratio of hours worked to the number of units of service rendered D) An increase in productivity occurs when an increase occurs in revenue from a given number of full-time equivalent employees - answers-C Which of the following is the depreciation method that best describes changes in the general purchasing power of the dollar and/or changes in the replacement cost of specific assets? A) declining balance depreciation B) straight-line depreciation C) Price level depreciation D) Sum of the years digits depreciation - answers-C When third-party policies and programs impede the healthcare facilities physical capacity to renovate and remodel it's plant as routinely scheduled, the healthcare facility, to protect itself, should first: A) Delay capital improvements until funds are available B) reduce the level of operating services C) limit the number of admissions from selected third-party payment sources D) Resort to the regulatory agency to obtain a waiver - answers-A The method referred to as 'value analysis' is used in inventory control activities to A) make adequate substitutions for requisitioned items B) reduce the quantity of items issued to the various departments C) reduce cost without impairing functional efficiency D) Relay quantity and quality of items - answers-C Under generally accepted accounting standards, bad debts are reported as a/an A) operating expense B) deduction from net revenue C) contractual allowance D) Deduction from gross revenue - answers-A Incident report should be initiated by A) A member of the medical/professional staff or by an employee B) any person with direct patient care responsibilities C) The department director or supervisor D) The risk manager/quality assurance coordinator - answers-A The governing authority of a healthcare facility can terminate the privileges of any member of the medical/professional staff A) at any time if it follows its own adopted procedures B) at any time, with or without due process C) only if termination is recommended by the medical/professional executive committee D) Only if termination is recommended by the medical/professional staff - answers-A Materials management can best be defined as a system of effective A) purchasing of materials at the lowest possible cost B) distribution of materials on a scheduled basis C) allocation of materials D) Control of inventories - answers-C When facility maintenance is deferred, which of the following outcomes is predictable A) higher cost B) lower cost C) deferred risk D) Higher liability exposure - answers-A The major person purpose of a code of ethics for members of the healthcare executives association is to A) provide guidance to members in their own professional conducts B) increase public understanding of the professional association C) provide a framework for disciplining the members necessary D) Provide a framework for annually evaluating professional performance - answers-A The volume that would be realized if each perspective consumer were to purchase a specified amount of a particular service during a defined future timeframe is called A) A sales forecast B) market forecast C) operational capacity D) market potential - answers-D As an internal control method, a budget is commonly used to A) allow managers to control expenditures in the current year and to justify increases in future budgets B) provide feedback concerning operational expenditures to the governing authority and to allow management to satisfy the governing authorities requirements for accountability C) serve as a numerical specification of plans and to function as a standard of control against which results can be compared D) allow management to monitor operational expenditures and justify future requests for decreased or increased expenditures to rate setting agencies - answers-C The most useful way for healthcare organization to deal with outside regulatory and credentialing bodies is to A) identify opportunities to influence political outcomes B) regularly maintained both formal and informal relationships with these agencies C