FACHE ACHE BOG EXAM TEST BANK – REAL
BOARD OF GOVERNORS EXAM QUESTIONS
& VERIFIED ANSWERS | PASS YOUR
HEALTHCARE EXECUTIVE CERTIFICATION
Question 1
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 2
In planning for future community health services, 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
Correct Answer
d) White
Page 1 of 141
,Question 3
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.
Question 4
The best way to reduce/contain the costs of distributing supplies throughout an
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.
Correct Answer
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.
Page 2 of 141
,Question 5
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 governance.
c) Create a partnership with a nonprofit hospital.
d) Minimize double taxation to members by passing proceeds directly to the
members.
Correct Answer
b) Have a community-dominated board of governance
Question 6
An efficient Formulary and Therapeutics Committee in many hospitals evaluates all of
the following except:
a) Symptoms of adverse reactions.
b) Patients' current medication effectiveness.
c) Contraindications.
d) Specific drugs in terms of appropriateness to caseload.
Correct Answer
b) Patients' current medication effectiveness.
Question 7
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
Page 3 of 141
, Question 8
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.
Correct Answer
c) Development of operational inpatient systems.
Question 1: Which of the following best describes the primary responsibility of
a healthcare organization’s governing board in relation to quality of care?
A. Directly supervising clinical staff performance
B. Setting organizational strategy and ensuring accountability for quality outcomes
C. Approving individual patient treatment plans
D. Managing day-to-day nursing schedules
CORRECT ANSWER: B. Setting organizational strategy and ensuring
accountability for quality outcomes
Rationale: The governing board holds ultimate accountability for the quality of care
provided. Its role centers on establishing strategic direction, approving quality
goals, monitoring performance metrics, and ensuring that management implements
effective systems, rather than engaging in operational or clinical decision-making.
Question 2: In healthcare financial management, what is the primary purpose
of a balance sheet?
A. To report revenues and expenses over a specific period
B. To show the organization’s assets, liabilities, and equity at a point in time
C. To project future cash flows
D. To detail departmental operating budgets
CORRECT ANSWER: B. To show the organization’s assets, liabilities, and equity
at a point in time
Page 4 of 141
BOARD OF GOVERNORS EXAM QUESTIONS
& VERIFIED ANSWERS | PASS YOUR
HEALTHCARE EXECUTIVE CERTIFICATION
Question 1
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 2
In planning for future community health services, 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
Correct Answer
d) White
Page 1 of 141
,Question 3
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.
Question 4
The best way to reduce/contain the costs of distributing supplies throughout an
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.
Correct Answer
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.
Page 2 of 141
,Question 5
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 governance.
c) Create a partnership with a nonprofit hospital.
d) Minimize double taxation to members by passing proceeds directly to the
members.
Correct Answer
b) Have a community-dominated board of governance
Question 6
An efficient Formulary and Therapeutics Committee in many hospitals evaluates all of
the following except:
a) Symptoms of adverse reactions.
b) Patients' current medication effectiveness.
c) Contraindications.
d) Specific drugs in terms of appropriateness to caseload.
Correct Answer
b) Patients' current medication effectiveness.
Question 7
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
Page 3 of 141
, Question 8
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.
Correct Answer
c) Development of operational inpatient systems.
Question 1: Which of the following best describes the primary responsibility of
a healthcare organization’s governing board in relation to quality of care?
A. Directly supervising clinical staff performance
B. Setting organizational strategy and ensuring accountability for quality outcomes
C. Approving individual patient treatment plans
D. Managing day-to-day nursing schedules
CORRECT ANSWER: B. Setting organizational strategy and ensuring
accountability for quality outcomes
Rationale: The governing board holds ultimate accountability for the quality of care
provided. Its role centers on establishing strategic direction, approving quality
goals, monitoring performance metrics, and ensuring that management implements
effective systems, rather than engaging in operational or clinical decision-making.
Question 2: In healthcare financial management, what is the primary purpose
of a balance sheet?
A. To report revenues and expenses over a specific period
B. To show the organization’s assets, liabilities, and equity at a point in time
C. To project future cash flows
D. To detail departmental operating budgets
CORRECT ANSWER: B. To show the organization’s assets, liabilities, and equity
at a point in time
Page 4 of 141
