FACHE Board of Governors (BOG) Exam in Healthcare
Management – Comprehensive Study Guide, Practice Questions &
Exam Review 2026-2027
This document is a comprehensive study resource for professionals preparing for the FACHE
Board of Governors (BOG) Exam in Healthcare Management. The guide covers key
knowledge domains tested on the examination, including healthcare management, leadership,
governance, strategic planning, healthcare finance, quality and performance improvement,
human resources, healthcare law and ethics, organizational structure, and communication and
relationship management. It includes practice questions, answer explanations, study notes, and
exam-focused review material designed to help healthcare leaders strengthen their knowledge
and prepare for board certification.
Which of the following si true about a capitated Managed Care Organization (MCO)
arrangement:
a) The provider shifts financial risk to the MCO
b) The provider can bil separately for each service provided
c) The provider must wait to bil the MCO until services have been provided to a patient
d) The provider is paid a set fee - CORRECT ANSWER d) The provider is paid a set
fee
QUESTION :Which of the following is a unit of measure commonly used to determine
provider productivity?
a) RVU
b) CMS
c) IPA
d) TJC - CORRECT ANSWER a) RVU
QUESTION :What population factor is currently having the greatest impact on
healthcare organizations?
a) Ethnic composition
b) Economic status
c) Geographic distribution
d) Age cohort - CORRECT ANSWER d) Age cohort
QUESTION :The principle reason for small and midsized employers to join buyers'
cooperatives si to enable them to:
a) Drop coverage from existing insurers
,b) Gain leverage to obtain prices similar to large employers
c) Negotiate directly with physicians and hospitals
d) Lobby government agencies for more protection from insurers - CORRECT
ANSWER b) Gain leverage to obtain prices similar to large employers
QUESTION :All areas of healthcare facilities are subject to safety and other regulatory
requirements as
dictated by state life safety codes, The Joint Commission, Occupational Safety and
Health Administration, state fire marshal, and others. 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 - CORRECT ANSWER d) Patient care areas
QUESTION :Participating providers in the federal Medicare program must:
a) Be accredited by The Joint Commission
b) Serve Medicaid beneficiaries
c) Meet the Conditions of Participation
d) Be in compliance with state certificate of need laws - CORRECT ANSWER c) Meet
the Conditions of Participation
QUESTION :Which organization is responsible for accrediting residency training
programs?
a) ACGME
b) AAMC
c) AMA
d) BPQA - CORRECT ANSWER a) ACGME
QUESTION :A patient is requesting their full medical record. Which of the following is
true regarding the record that will be provided to the patient:
a) Psychotherapy notes may be excluded b) Physical therapy notes may be excluded
c) Labs and diagnostic imaging may be excluded d) The full record must always be
provided. - CORRECT ANSWER a) Psychotherapy notes may be excluded
QUESTION :An inpatient admission reimbursed based on the patient's diagnosis and
anticipated length of stay and services is known as:
a) ICD-10 payment
b) Capitation payment
c) Fee for service payment
,d) DRG payment - CORRECT ANSWER d) DRG payment
QUESTION :Bundled pricing (paying a single fee for al services) for such services as
total hip
replacement or coronary artery bypass surgery affected physician-hospital relationships
by:
a) Reducing the need to devote administrative effort to measuring outcomes and
performance indicators
b) Putting the physician and hospital in competition with each other for reimbursement
c) Promoting collaboration and integration efforts to provide more efficient care d)
Guaranteeing only top providers are allowed to participate in such programs -
CORRECT ANSWER c) Promoting collaboration and integration efforts to provide
more efficient care
QUESTION :A hospital acquires another hospital. This would be known as:
a) Vertical integration
b) Diagonal integration
c) Circular integration
d) Horizontal integration - CORRECT ANSWER d) Horizontal integration
QUESTION :Under capitation, the risks of over-utilization are shifted ot the:
a) Patient receiving the health services
b) Provider of the health services
c) Third-party payers
d) Health insurance company - CORRECT ANSWER b) Provider of the health
services
QUESTION :In addition to improving the health of the surrounding community, one of
the primary reasons non-profit hospitals may offer health fairs, screening programs, and
smoking cessation classes is that they contribute to:
a) Demand for services
b) Supply of providers
c) Image of the organization
d) Community benefit - CORRECT ANSWER d) Community benefit
QUESTION :Hospitals designated and known for their ability to attract and retain
nurses, despite shortages, and for exceptional nursing quality outcomes are referred to
as:
a) Shared Governance Hospitals
b) Leapfrog Hospitals
c) Magnet Hospitals
, d) Baldridge Hospitals - CORRECT ANSWER c) Magnet Hospitals
QUESTION :Your board of trustees has voted ot terminate the privileges of a physician.
Which of the following organizations must you inform?
a) American Medical Association
b) Local medical society
c) National Practitioner Data Bank
d) The Joint Commission - CORRECT ANSWER c) National Practitioner Data Bank
QUESTION :The development of preferred provider organizations was originally
intended to:
a) Guarantee that hospitals maintain their occupancies
b) Promote networks that would evolve into multi-hospital systems
c) Offer an alternative to health maintenance organizations
d) Force high-priced hospitals out of local markets via discounts - CORRECT ANSWER
c) Offer an alternative to health maintenance organizations
QUESTION :Efforts to encourage licensed clinical staff to engage in continuing
education are given substantial assistance by the fact that these professionals:
a) Are highly competitive and encouraged by peer pressure
b) Must meet requirements of their certifying group
c) Are interested in opportunities for growth
d) Must meet malpractice standards for continuing education - CORRECT ANSWER
b) Must meet requirements of their certifying group
QUESTION :Magnet hospital designation includes an organizational commitment to all
the following except:
a) Professional autonomy over practice
b) Nursing control over practice environment
c) Competitive benefits for all nurses
d) Effective communication between physicians, administrators, and nurses -
CORRECT ANSWER c) Competitive benefits for all nurses
QUESTION :All areas of healthcare facilities are subject to safety, convenience and
other regulatory requirements as dictated by the state life safety codes, TJC, OSHA,
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. - CORRECT ANSWER d) Patient care areas.
Management – Comprehensive Study Guide, Practice Questions &
Exam Review 2026-2027
This document is a comprehensive study resource for professionals preparing for the FACHE
Board of Governors (BOG) Exam in Healthcare Management. The guide covers key
knowledge domains tested on the examination, including healthcare management, leadership,
governance, strategic planning, healthcare finance, quality and performance improvement,
human resources, healthcare law and ethics, organizational structure, and communication and
relationship management. It includes practice questions, answer explanations, study notes, and
exam-focused review material designed to help healthcare leaders strengthen their knowledge
and prepare for board certification.
Which of the following si true about a capitated Managed Care Organization (MCO)
arrangement:
a) The provider shifts financial risk to the MCO
b) The provider can bil separately for each service provided
c) The provider must wait to bil the MCO until services have been provided to a patient
d) The provider is paid a set fee - CORRECT ANSWER d) The provider is paid a set
fee
QUESTION :Which of the following is a unit of measure commonly used to determine
provider productivity?
a) RVU
b) CMS
c) IPA
d) TJC - CORRECT ANSWER a) RVU
QUESTION :What population factor is currently having the greatest impact on
healthcare organizations?
a) Ethnic composition
b) Economic status
c) Geographic distribution
d) Age cohort - CORRECT ANSWER d) Age cohort
QUESTION :The principle reason for small and midsized employers to join buyers'
cooperatives si to enable them to:
a) Drop coverage from existing insurers
,b) Gain leverage to obtain prices similar to large employers
c) Negotiate directly with physicians and hospitals
d) Lobby government agencies for more protection from insurers - CORRECT
ANSWER b) Gain leverage to obtain prices similar to large employers
QUESTION :All areas of healthcare facilities are subject to safety and other regulatory
requirements as
dictated by state life safety codes, The Joint Commission, Occupational Safety and
Health Administration, state fire marshal, and others. 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 - CORRECT ANSWER d) Patient care areas
QUESTION :Participating providers in the federal Medicare program must:
a) Be accredited by The Joint Commission
b) Serve Medicaid beneficiaries
c) Meet the Conditions of Participation
d) Be in compliance with state certificate of need laws - CORRECT ANSWER c) Meet
the Conditions of Participation
QUESTION :Which organization is responsible for accrediting residency training
programs?
a) ACGME
b) AAMC
c) AMA
d) BPQA - CORRECT ANSWER a) ACGME
QUESTION :A patient is requesting their full medical record. Which of the following is
true regarding the record that will be provided to the patient:
a) Psychotherapy notes may be excluded b) Physical therapy notes may be excluded
c) Labs and diagnostic imaging may be excluded d) The full record must always be
provided. - CORRECT ANSWER a) Psychotherapy notes may be excluded
QUESTION :An inpatient admission reimbursed based on the patient's diagnosis and
anticipated length of stay and services is known as:
a) ICD-10 payment
b) Capitation payment
c) Fee for service payment
,d) DRG payment - CORRECT ANSWER d) DRG payment
QUESTION :Bundled pricing (paying a single fee for al services) for such services as
total hip
replacement or coronary artery bypass surgery affected physician-hospital relationships
by:
a) Reducing the need to devote administrative effort to measuring outcomes and
performance indicators
b) Putting the physician and hospital in competition with each other for reimbursement
c) Promoting collaboration and integration efforts to provide more efficient care d)
Guaranteeing only top providers are allowed to participate in such programs -
CORRECT ANSWER c) Promoting collaboration and integration efforts to provide
more efficient care
QUESTION :A hospital acquires another hospital. This would be known as:
a) Vertical integration
b) Diagonal integration
c) Circular integration
d) Horizontal integration - CORRECT ANSWER d) Horizontal integration
QUESTION :Under capitation, the risks of over-utilization are shifted ot the:
a) Patient receiving the health services
b) Provider of the health services
c) Third-party payers
d) Health insurance company - CORRECT ANSWER b) Provider of the health
services
QUESTION :In addition to improving the health of the surrounding community, one of
the primary reasons non-profit hospitals may offer health fairs, screening programs, and
smoking cessation classes is that they contribute to:
a) Demand for services
b) Supply of providers
c) Image of the organization
d) Community benefit - CORRECT ANSWER d) Community benefit
QUESTION :Hospitals designated and known for their ability to attract and retain
nurses, despite shortages, and for exceptional nursing quality outcomes are referred to
as:
a) Shared Governance Hospitals
b) Leapfrog Hospitals
c) Magnet Hospitals
, d) Baldridge Hospitals - CORRECT ANSWER c) Magnet Hospitals
QUESTION :Your board of trustees has voted ot terminate the privileges of a physician.
Which of the following organizations must you inform?
a) American Medical Association
b) Local medical society
c) National Practitioner Data Bank
d) The Joint Commission - CORRECT ANSWER c) National Practitioner Data Bank
QUESTION :The development of preferred provider organizations was originally
intended to:
a) Guarantee that hospitals maintain their occupancies
b) Promote networks that would evolve into multi-hospital systems
c) Offer an alternative to health maintenance organizations
d) Force high-priced hospitals out of local markets via discounts - CORRECT ANSWER
c) Offer an alternative to health maintenance organizations
QUESTION :Efforts to encourage licensed clinical staff to engage in continuing
education are given substantial assistance by the fact that these professionals:
a) Are highly competitive and encouraged by peer pressure
b) Must meet requirements of their certifying group
c) Are interested in opportunities for growth
d) Must meet malpractice standards for continuing education - CORRECT ANSWER
b) Must meet requirements of their certifying group
QUESTION :Magnet hospital designation includes an organizational commitment to all
the following except:
a) Professional autonomy over practice
b) Nursing control over practice environment
c) Competitive benefits for all nurses
d) Effective communication between physicians, administrators, and nurses -
CORRECT ANSWER c) Competitive benefits for all nurses
QUESTION :All areas of healthcare facilities are subject to safety, convenience and
other regulatory requirements as dictated by the state life safety codes, TJC, OSHA,
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. - CORRECT ANSWER d) Patient care areas.
