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ACHE Board of Governors (BOG) Exam Practice Questions 2026 | Complete Q&A Review Pack | FACHE Healthcare Management Exam Prep | Finance, Law & Ethics, Quality, Leadership & Governance

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This 2026 review pack helps you prepare for the ACHE Board of Governors Examination in Healthcare Management, the exam required for FACHE advancement. It pairs practice questions with answers across the main domains: healthcare environment and delivery, financial management, human resources, law and ethics, quality and patient safety, organizational governance, strategic planning, information management, and leadership. Use it for focused revision and to find weak areas before test day. It suits healthcare administrators and managers pursuing Fellow status.

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ACHE BOG Exam Past Questions 2026 | Complete Q&A
Review Pack
1. In a healthcare organization, how might a manager utilize the critical-incidents
technique to improve team performance?

By systematically recording both positive and negative behaviors
exhibited by team members, the manager can identify areas for
improvement and provide targeted feedback.

By only focusing on the highest performing employees to set
benchmarks for others.

By eliminating the need for performance reviews altogether.

By using the technique to solely reward employees based on their
attendance records.

2. If a Health Maintenance Organization (HMO) is found to be financially
insolvent, which agency would likely intervene to address the issue?

U.S. Department of Health and Human Services.

State insurance commission/department.

Medicaid agency/department.

Department of Taxation.

3. If a hospital is struggling to fill nursing positions, how might developing an
affiliation with a nursing education program help address this issue?

By increasing the hospital's advertising budget.

By reducing the salaries offered to nursing staff.

By creating a pipeline of qualified nursing graduates ready to fill
positions.

, By outsourcing nursing positions to other facilities.

4. Describe the significance of retained earnings in distinguishing between for-
profit and not-for-profit healthcare organizations.

Retained earnings are the same for both types of organizations as
they represent total assets.

Retained earnings reflect the accumulated profits of a for-profit
organization, while not-for-profits do not have retained earnings as
they reinvest surplus revenue into the organization.

Retained earnings are irrelevant to the financial health of healthcare
organizations.

Retained earnings indicate the amount of debt a healthcare
organization has incurred.

5. Describe how convening and chairing the Quality Council contributes to total
quality management in an organization.

It emphasizes customer service without addressing quality
management.

It merely changes the department's name without impacting quality.

It fosters collaboration and accountability among stakeholders to
improve quality processes.

It focuses solely on training employees without structural changes.

6. Describe the relationship between patient days and average cost per patient
day in a routine service cost center.

More patient days always increase the average cost per patient day.

Fixed costs are irrelevant to the calculation of average cost per
patient day.

, The average cost per patient day remains constant regardless of
patient days.

An increase in patient days typically leads to a lower average cost
per patient day due to the spreading of fixed costs over a larger
number of patients.

7. Imagine a healthcare organization is struggling with strategic adaptation. If
they decide to focus on developing successful hospital-physician
partnerships instead of pursuing vertical and horizontal integration with out-
of-area providers, what potential benefits might they experience?

Improved collaboration and communication between hospitals and
physicians, leading to better patient outcomes.

Limited access to a broader patient base.

Reduced accountability in healthcare management.

Increased costs due to lack of integration with out-of-area providers.

8. The point of service product is the fastest growing managed care products in
the contemporary marketplace because

it allows consumers to place a direct value on how important
provider choice is to them

Primary care physicians preferred to have their patients seek specialty
care without referrals

managed care organization utilization management systems are so
well developed that they can afford to let people go out of network
without any increase in cost

The product is less costly for managed-care organizations, employers,
and employees

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Uploaded on
October 1, 2026
Number of pages
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Written in
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