ACHE BOG LEARNING COMPANION 2026
HEALTHCARE POLICY AND REGULATORY
ENVIRONMENT FUNDAMENTALS
◉ An essential function of the governing board is to:
a. approve the mission, vision, and long-range plan
b. focus on strategic planning
c. prepare the operating plan
d. review the performance of departmental managers
Answer: a. approve the mission, vision, and long-range plan
◉ The key to enhancing board effectiveness is:
a. getting the right people to serve on the board
b. supporting and selecting the right CEO
c. orientating and training the CEO
d. organizing the board's work
Answer: d. organizing the board's work
◉ Members of the medical staff are eligible for full membership on
the governing board in the same manner as other individuals:
,a. when not legally prohibited
b. when they do not actively practice in the organization
c. when they are not full-time employees
d. if they are not foreign nationals
Answer: a. when not legally prohibited
◉ The Chief Executive Officer:
a. is a member of the board
b. represents the board internally and externally
c. is not a member of the board
d. has a contract with the board
Answer: b. represents the board internally and externally
◉ Regarding the budget, the board:
a. does not use the budget exercise as a way to improve quality and
productivity
b. gets involved in preparing budgets for all operational units
c. decides which personnel are needed in top management
d. establishes guidelines and makes final choices among competing
opportunities
Answer: d. establishes guidelines and makes final choices among
competing opportunities
,◉ The individual or group responsible for establishing policy,
maintaining quality of care, and providing for institutional
management planning is the:
a. COO
b. Medical Staff Medical Committee
c. Governing Body
d. CEO
Answer: c. Governing Body
◉ A correct statement regarding trustee serving as fiduciaries is that
they can:
a. be indicted for alleged theft of facility funds and improper
expenditures of facility funds for personal reasons.
b. be released from responsibility by giving the audit committee final
authority in high risk areas of financial matters, without any action
by the whole board
c. be held personally liable for wrongful acts or omissions by
corporate officers or co-trustees by virtue of their position as
trustees
d. waive their fiduciary responsibility as a community organization
Answer: a. be indicted for alleged theft of facility funds and improper
expenditures of facility funds for personal reasons.
, ◉ Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO
Answer: b. Governing Board
◉ A key reason for choosing board members is because:
a. other board members want to listen to their opinions.
b. of what they can do for the organization
c. have high status in the community
c. physicians will listen to them they can
Answer: b. of what they can do for the organization
◉ The bylaws of healthcare organization should include which of the
following?
a. Committee scope and function
b. The privileges of the medical staff
c. The names of the stockholders in the organization
c. Composition of the governing board, committee, and officers
Answer: c. Composition of the governing board, committee, and
officers
HEALTHCARE POLICY AND REGULATORY
ENVIRONMENT FUNDAMENTALS
◉ An essential function of the governing board is to:
a. approve the mission, vision, and long-range plan
b. focus on strategic planning
c. prepare the operating plan
d. review the performance of departmental managers
Answer: a. approve the mission, vision, and long-range plan
◉ The key to enhancing board effectiveness is:
a. getting the right people to serve on the board
b. supporting and selecting the right CEO
c. orientating and training the CEO
d. organizing the board's work
Answer: d. organizing the board's work
◉ Members of the medical staff are eligible for full membership on
the governing board in the same manner as other individuals:
,a. when not legally prohibited
b. when they do not actively practice in the organization
c. when they are not full-time employees
d. if they are not foreign nationals
Answer: a. when not legally prohibited
◉ The Chief Executive Officer:
a. is a member of the board
b. represents the board internally and externally
c. is not a member of the board
d. has a contract with the board
Answer: b. represents the board internally and externally
◉ Regarding the budget, the board:
a. does not use the budget exercise as a way to improve quality and
productivity
b. gets involved in preparing budgets for all operational units
c. decides which personnel are needed in top management
d. establishes guidelines and makes final choices among competing
opportunities
Answer: d. establishes guidelines and makes final choices among
competing opportunities
,◉ The individual or group responsible for establishing policy,
maintaining quality of care, and providing for institutional
management planning is the:
a. COO
b. Medical Staff Medical Committee
c. Governing Body
d. CEO
Answer: c. Governing Body
◉ A correct statement regarding trustee serving as fiduciaries is that
they can:
a. be indicted for alleged theft of facility funds and improper
expenditures of facility funds for personal reasons.
b. be released from responsibility by giving the audit committee final
authority in high risk areas of financial matters, without any action
by the whole board
c. be held personally liable for wrongful acts or omissions by
corporate officers or co-trustees by virtue of their position as
trustees
d. waive their fiduciary responsibility as a community organization
Answer: a. be indicted for alleged theft of facility funds and improper
expenditures of facility funds for personal reasons.
, ◉ Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO
Answer: b. Governing Board
◉ A key reason for choosing board members is because:
a. other board members want to listen to their opinions.
b. of what they can do for the organization
c. have high status in the community
c. physicians will listen to them they can
Answer: b. of what they can do for the organization
◉ The bylaws of healthcare organization should include which of the
following?
a. Committee scope and function
b. The privileges of the medical staff
c. The names of the stockholders in the organization
c. Composition of the governing board, committee, and officers
Answer: c. Composition of the governing board, committee, and
officers
