FACHE – BOG PRACTICE EXAM QUESTIONS WITH CORRECTLY ANALYZED
ANSWERS
|ALREADY GRADED A+ LATEST 2025
1.Management Letter - ANSWER Comments of external auditors to the governing board that accompany
their audited financial report
2. mission - ANSWER A statement of purpose- the good or benefit a healthcare organization intends to
contribute - couched in terms of an identified community, a set of services, and a specific level of cost or
finance; many healthcare organizations are moving to population health missions, explicitly accepting
responsibility for the broader goal.
3. Reserved Powers - ANSWER Decisions permanently vested in the central corporation of a
multicorporate system.
4. Span of control - ANSWER The number of subordinates who report directly to an executive or
supervisor
5. Strategic Business Unit - ANSWER A profit center in an organization that focuses on a product line or
market segment.
6. Strategic Scorecard - ANSWER Measures of overall enterprise performance grouped in major
dimensions - customers, associates and suppliers, operations (quality and cost), and finance. The
strategic scorecard is reported to the governing board and is appropriate for service lines, the HCO as a
whole, or its major components.
7. Trustees - ANSWER Members of the governing board of not-for-profit HCOs who volunteer their time
to the organization; their only compensation is the satisfaction they achieve from their work. The title
reflects their acceptance of the assets in trust for the community; also may be called directors
8. Values - ANSWER An expansion of an organization's mission that expresses the basic rules of
acceptable conduct, such as respect for human dignity or acceptance of equality.
,9. Vision - ANSWER An expansion of an organization's mission that expresses intentions, philosophy, and
organization self-image.
10. 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.
11. 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.
12. Ambulatory Care - ANSWER Medical care provided on an outpatient basis.
13. Ancillary Services - ANSWER Services that relate to a patient's care, such as lab work, X-rays, and
anesthesia.
14. 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.
15. 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.
16. Centers for Medicare and Medicaid Services - ANSWER The federal agency responsible for
administering Medicare, Medicaid, and the State Children's Health Insurance Program.
17 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.
18. Community acquired infection rates - ANSWER The measure of infections acquired from a
community, in contrast to those acquired in a hospital.
, 19.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.
20. Mission - ANSWER The central purpose of an organization; its reason for existence
21. 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
22. Benchmark - ANSWER The best performance on a specific measure of which the organization is
aware.
23. 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
24. Barriers to Entry - ANSWER Obstacles that impede an organization as it seeks to enter a market
25. Branding - ANSWER A community-wide communication effort to convey the mission and the
competitive advantage of an organization
26. Breach of contract - ANSWER A contracting party's failure or refusal to perform its obligations
specified in a contract
27. 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.
28. Business Plan - ANSWER A model of a specific strategy or function that guides design, operations,
and goal setting.
29. Certificate of Need - ANSWER Certificate of approval for new services and for construction or
renovation of hospitals or related facilities; issued in many states
ANSWERS
|ALREADY GRADED A+ LATEST 2025
1.Management Letter - ANSWER Comments of external auditors to the governing board that accompany
their audited financial report
2. mission - ANSWER A statement of purpose- the good or benefit a healthcare organization intends to
contribute - couched in terms of an identified community, a set of services, and a specific level of cost or
finance; many healthcare organizations are moving to population health missions, explicitly accepting
responsibility for the broader goal.
3. Reserved Powers - ANSWER Decisions permanently vested in the central corporation of a
multicorporate system.
4. Span of control - ANSWER The number of subordinates who report directly to an executive or
supervisor
5. Strategic Business Unit - ANSWER A profit center in an organization that focuses on a product line or
market segment.
6. Strategic Scorecard - ANSWER Measures of overall enterprise performance grouped in major
dimensions - customers, associates and suppliers, operations (quality and cost), and finance. The
strategic scorecard is reported to the governing board and is appropriate for service lines, the HCO as a
whole, or its major components.
7. Trustees - ANSWER Members of the governing board of not-for-profit HCOs who volunteer their time
to the organization; their only compensation is the satisfaction they achieve from their work. The title
reflects their acceptance of the assets in trust for the community; also may be called directors
8. Values - ANSWER An expansion of an organization's mission that expresses the basic rules of
acceptable conduct, such as respect for human dignity or acceptance of equality.
,9. Vision - ANSWER An expansion of an organization's mission that expresses intentions, philosophy, and
organization self-image.
10. 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.
11. 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.
12. Ambulatory Care - ANSWER Medical care provided on an outpatient basis.
13. Ancillary Services - ANSWER Services that relate to a patient's care, such as lab work, X-rays, and
anesthesia.
14. 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.
15. 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.
16. Centers for Medicare and Medicaid Services - ANSWER The federal agency responsible for
administering Medicare, Medicaid, and the State Children's Health Insurance Program.
17 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.
18. Community acquired infection rates - ANSWER The measure of infections acquired from a
community, in contrast to those acquired in a hospital.
, 19.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.
20. Mission - ANSWER The central purpose of an organization; its reason for existence
21. 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
22. Benchmark - ANSWER The best performance on a specific measure of which the organization is
aware.
23. 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
24. Barriers to Entry - ANSWER Obstacles that impede an organization as it seeks to enter a market
25. Branding - ANSWER A community-wide communication effort to convey the mission and the
competitive advantage of an organization
26. Breach of contract - ANSWER A contracting party's failure or refusal to perform its obligations
specified in a contract
27. 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.
28. Business Plan - ANSWER A model of a specific strategy or function that guides design, operations,
and goal setting.
29. Certificate of Need - ANSWER Certificate of approval for new services and for construction or
renovation of hospitals or related facilities; issued in many states
