FACHE – BOG FINAL EXAM STUDY GUIDE 2025/2026 ACCURATE QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS <LATEST VERSION>

FACHE – BOG FINAL EXAM STUDY GUIDE 2025/2026 ACCURATE QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS &lt;LATEST VERSION&gt; 1. Healthcare Organization - ANSWER A corporation providing the services of multiple patient care teams, such as a hospital or clinic, supporting care providers with clinical, logistic, and strategic services. 2. Mission - ANSWER The central purpose of an organization; its reason for existence 3. Population Health - ANSWER The health of a defined group of individuals, such as a state or civil division, or insured group, measured by the incidence and prevalence of disease or infirmity 4. 3 academic disciplines of healthcare finance - ANSWER Financial accounting, managerial accounting and financial management 5. Financial Accounting - ANSWER Data entry, transaction analysis, and preparation and interpretation of financial statements for internal managers and external stakeholders 6. Managerial Accounting - ANSWER Focuses on the internal uses of accounting information for decision making. These techniques include cost identification and cost/volume/profit models. Should provide information that will improve the effieciency and effectiveness of the use of economic resources. 7. Financial Management - ANSWER Focuses on assets management with an emphasis on cash flow analysis, i.e. working capital, the capital structure composition, risk and cost of various amounts of debt and equity sources, the capital budgeting process, time value of money techniques and financial feasibility studies 8. GAAP- Generally accepted accounting principles - ANSWER Common set of accounting principles, standards and procedures that companies use to compile their financial statements. 9. FASB - Financial Accounting Standards Board - ANSWER A 7 member independent board consisting of accounting principles who establish and communicate standards of financial accounting and reporting in the US. 10. AICPA American Institute of Public Accountants - ANSWER Professional organization of CPA's 11. 3 basic forms of financial statements: - ANSWER Balance sheet, income statement ( statement of revenue and expenses), and statement of cash flows 12. Balance sheet - ANSWER Presents the financial position of the organization at a point in time usually the end of the fiscal year. The values assigned to the assists are accounting values and do not necessarily reflect market values. Prepared in accordance with GAAP. 13. Major components of Balance sheet: - ANSWER Historical cost convention, accrual and "going concern". 14. Historical cost convention - ANSWER Asset values are typically based on the value assigned at the time of purchase and the price paid. 15. Accrual Component - ANSWER Focuses on a matching of the revenues earned and expenses incurred to provide those services not when the cash flow actually occurs. 16. Going Concern Concept - ANSWER Reflects the fact that the values assigned to the assets are based on the premise that the organization will continue to perform the same type of mission I.e. health services in the case of a hospital. 17. When concerned with pricing decisions what must consider _____________cost concepts - ANSWER Per unit 18. Total cost per unit is found by dividing ______ by _______ - ANSWER TC / Volume measure 19. Total Cost = - ANSWER FC + VC 20. When one has FC , Per unit costs cannot be determined without........ - ANSWER A specific volume of output 21. Contribution Margin= - ANSWER Price after discounts-VPCperU 22. BEQ= - ANSWER TFC/ CM -see image in photo gallery for explanation on financial statement 23. MARGIN - ANSWER Equals sales - all product costs (direct materials, direct labor and manufacturing overheads) appears on absorption costing income statement. 24. Contribution MARGIN= - ANSWER Sales -VC 25. Can be calculated in 3 forms: in total, per unit, as a ratio. 26. Explains how different factories in the company, sales price, sales volume, variable costs and fixed costs- interact. 27. Quanity Equation WHERE MARGIN IS = 0 - ANSWER TFC/CM 28. Quality Equation WHERE MARGIN IS &gt; 0 - ANSWER Q= TFC+M/CM 29. Benchmark - ANSWER The best performance on a specific measure of which the organization is aware. 30. Bargaining Unit - ANSWER A group of employees recognized by the National Labor Relations Board to be an appropriate body for collective bargaining under the National Labor Relations Act 31. Barriers to Entry - ANSWER Obstacles that impede an organization as it seeks to enter a market 32. Branding - ANSWER A community-wide communication effort to convey the mission and the competitive advantage of an organization 33. Breach of contract - ANSWER A contracting party's failure or refusal to perform its obligations specified in a contract 34. Business Model - ANSWER The underlying structure of an organization; the means through which an organization creates and delivers value to its customers and earns revenues. 35. Business Plan - ANSWER A model of a specific strategy or function that guides design, operations, and goal setting. 36. Academic Health Center - ANSWER An institution that encompasses all of the health-related components of a university, including its health professions school, patient care operations, and research enterprise. 37. Acute Care Hospital - ANSWER A hospital (typically a community hospital) that delivers services designed to meet the needs of patients who require short-term care for a period of less than 30 days. 38. Ambulatory Care - ANSWER Medical care provided on an outpatient basis. 39. Ancillary Services - ANSWER Services that relate to a patient's care, such as lab work, X-rays, and anesthesia. 40. Average Length of Stay - ANSWER The average number of days in a given period that a patient remains in the hospital; varies by type of admission, age, and sex and is calculated by dividing the total number of bed days by the number of discharges for a specified period. 41. Bundled pricing - ANSWER The act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately; in healthcare, usually means one price for all of the services provided for a given diagnosis or procedure, such as total joint replacement. 42. Centers for Medicare and Medicaid Services - ANSWER The federal agency responsible for administering Medicare, Medicaid, and the State Children's Health Insurance Program. 43. Community Benefit - ANSWER Charitable care, educational services, and other benefits that a healthcare organization provides to its community to qualify as a tax-exempt charity under section 501(c)(3) of the Internal Revenue Code. 44. Community acquired infection rates - ANSWER The measure of infections acquired from a community, in contrast to those acquired in a hospital. 45. continuum of care - ANSWER The full spectrum of healthcare, including preventive, ambulatory, acute, post-acute, long-term, palliative, and hospice 46. Critical Access hospital - ANSWER A rural community hospital that receives cost-based reimbursement. 47. Disproportionate share hospital - ANSWER A hospital that receives Medicare funding for treating a higher proportion of indigent patients (calculated by a formula); the Affordable Care Act would decrease this funding over time. 48. Epidemiologic planning model - ANSWER A statistical analysis and forecast of the health needs of the community served. 49. Evidence-based management - ANSWER A management approach that relies heavily on performance measurement, identification of best practices, formal process specification. 50. Health maintenance organization - ANSWER A health insurance organization licensed at the states level to which subscribers pay a predetermined fee in return for access to a panel of employed physicians and network of facilities. 51. Health savings account - ANSWER An account created for individuals who are covered under high-deductible health plans to save for medical expenses that the plans do not cover. 52. Healthcare Effectiveness Data and Information Set (HEDIS) - ANSWER A comprehensive set of standardized performance measures designed to provide purchasers and consumers with the information they need for reliable comparison of health care plan performance; HEDIS measures relate to significant public health issues such as cancer, heart disease, smoking, asthma, and diabetes. 53. Hospice - ANSWER An organization that provides medical care and support services (e.g. pain and symptom management, counseling, bereavement services) to terminally ill patients and their families; it may be a freestanding facility, a unit of a hospital or other institution, or a separate program of a hospital, agency, or institution 54. Hospital Preauthorization - ANSWER A managed care technique in which the insured obtains permission from a managed care organization before entering the hospital for nonemergency care. 55. Hospitalist - ANSWER A physician who manages broad categories of hospitalized patients. 56. Indemnity Plans - ANSWER Traditional fee for service health plans 57. urgent care - ANSWER -Care for injury, illness, or another type of condition (usually not life threatening) that should be treated within 24 hours; - Also refers to after hours care and to a health plan's classification of hospital admissions as urgent, semiurgent, or elective. 58. US Department of Health and Human Services - ANSWER a federal regulatory agency that administers and manages many health organizations, systems, and programs 59. Value Based Purchasing - ANSWER a system in which purchasers hold providers of healthcare accountable for both the costs of healthcare and its quality. 60. patient satisfaction score - ANSWER -The measure of a patient's overall satisfaction with the level of care received from a healthcare professional, hospital, or other healthcare provider; -the HCAHPS(Hospital Consumer Assessment of Healthcare Providers and Systems) survey is the first national standardized survey of patient satisfaction. 61. Patient Autonomy - ANSWER The right of a patient to make informed choices regarding his or her health care. 62. Palliative Services - ANSWER -Interdisciplinary Care provided to a patient with serious, life threatening, life limiting illness that aims to manage symptoms, relieve pain and improve quality of life. 63. Outcome - ANSWER The end result of medical care as indicated by recovery, disability, functional status, or patient satisfaction. 64. Occupational Safety and Health Administration - ANSWER An agency of the U.S. Department of Labor, responsible for the enforcement of health and safety regulations 65. Morality - ANSWER The incidence of death in a population. 66. Morbidity - ANSWER the incidence and severity of illness and accidents in a population. 67. Medigap - ANSWER a private insurance policy that pays the difference between the medical charge and the amount that Medicare pays 68. Medicare recovery audit program - ANSWER A program to identify and correct improper payments from Medicare to providers, with the aim of preventing future improper payments by Medicare; a common improper payment is for surgical services provided in the wrong setting (inpatient instead of outpatient). 69. Magnet Recognition Program - ANSWER - A program developed by the American Nurses Credentialing Center that recognizes healthcare organizations for quality patient care, nursing excellence, and innovations in professional nursing practice - Magnet designation is the ultimate credential for high-quality nursing. 70. Long Term Care - ANSWER A continuum of maintenance, custodial, and health services provided to the chronically ill, disabled or mentally handicapped. 71. Joint Commission - ANSWER independent not for profit organization that evaluates and accredits organizations to improve safety and quality of care; voluntary 72. Interdisciplinary Plan of Care - ANSWER A documented process that includes the patient, the family, and all clinical disciplines involved in planning and providing care to a patient from system point of entry, throughout the entire acute care episode, and to the next level of care. 73. Independent Practice Association (IPA) - ANSWER -A legal entity that contracts with a group of independent physicians to provide services to MCO @ a negotiated per capita rate -the arrangement is usually not exclusive 74. Indemnity Plans - ANSWER Traditionally fee-for - service health plans 75. Hospitalist - ANSWER A physician who manages broad categories of hospitalized patients. 76. Hospital preauthorization - ANSWER A managed care technique in which the insured obtains permission from a managed care organization before entering the hospital for nonemergency care. 77. Hospice - ANSWER a home providing care for the sick, especially the terminally ill. 78. Healthcare Effectiveness Data and Information Set (HEDIS) - ANSWER A comprehensive set of standardized performance measures designed to provide purchasers and consumers with information they need for reliable comparison of health plan performance -HEDIS measures related to significant public health issues. 79. Health Saving Accounts (HSAs) - ANSWER A account created for individuals who are covered under high deductible health plans to save for medical expenses that plans do not cover 80. Health Maintenance Organization (HMO) - ANSWER A health insurance organization licensed at state level to which subscribers pay a predetermined amount for access to providers in the network 81. Evidence Based management - ANSWER A management approach that relies heavily on performance measurement, identification of best practices and formal process of specialization 82. Epidemiological planning model - ANSWER A statistical analysis and forecast of the health needs of the community served. 83. Disproportionate Share Hospital - ANSWER -A hospital that receives Medicare funding for treating a higher proportion of indigent patients (calculated by a formula) -the Affordable Care Act would decrease this funding over time. 84. Critical Access Hopsital - ANSWER A rural community hospital that receives cost based reimbursement 85. Continuum of care - ANSWER The full spectrum of healthcare, including preventive, ambulatory, acute, post-acute, long-term, palliative, and hospice.