FACHE – ACHE Board of Governors (BOG)
Exam (2026/2027) – American College of
Healthcare Executives Board of
Governors Examination for FACHE
Credential with Complete Questions &
Verified Answers
For the routine service cost center, an increase in the number of patient days over the
budgeted number of patient days will result in:
1. A higher average cost per patient day.
2. A lower average cost per patient day.
3. An increase in the budgeted fixed costs for the routine service cost center.
4.No change in the average cost per patient day. -CORRECTANSWER 2.
Which of the following balance sheet items would differ between a for-profit and a not-
for-profit healthcare organization?
1.Retained earnings.
2.Plant, property, and equipment.
3.Real estate.
4.Investments. -CORRECTANSWER 1.
,Which of the following leadership actions most clearly supports organizational
transformation toward total quality management?
1.Convening and chairing the Quality Council.
2.Changing the name of the quality department from QA to CQI.
3.Requiring all direct reports to attend an introductory course in TQM.
4.Hiring a customer service representative. -CORRECTANSWER 1.
In the healthcare field, the accountability of management is best measured by the:
1.Balance maintained between service quality and operational efficiency.
2.Results shown on the annual expense and income statement.
3.Balance maintained between physician satisfaction and patient needs.
4.Degree to which management's needs are met -CORRECTANSWER 1.
Consumer "report card" development and distribution has become a high priority for
managed care organizations because:
1.Measurements of performance have now become well established, standardized, and
accepted by all parties.
2.Purchasers are pressuring for disclosure of meaningful performance information for
use by buyers and consumers.
,3.Consumers in healthcare are now well organized, and managed care organizations
feel a need to satisfy them.
4.Physicians are increasingly encouraging their patients to evaluate managed care
organizations based on these report cards. -CORRECTANSWER 2.
Which of the following is not required for managing strategic adaptation?
1.Development of integrated continuums of care.
2.Development of successful hospital-physician partnerships.
3.Vertical and horizontal integration with out-of-area providers.
4.Programs of strategic leadership development for board members, managers,
physicians, and nurse leaders. -CORRECTANSWER 3.
What is an important advantage of physician participation in Independent Practice
Associations (IPAs) versus other affiliation arrangements with HMOs?
1.IPA arrangements normally pay physicians better than staff or group model
arrangements.
2.Physicians participating in IPAs can limit their dependence on any single HMO.
3.IPA arrangements avoid the serious tensions that arise between primary care and
specialty physicians.
.IPAs rarely use utilization management mechanisms like primary care gatekeeping and
preadmission certification. -CORRECTANSWER 2.
, The point-of-service product is the fastest growing managed care product in the
contemporary marketplace because:
1.It allows consumers to place a direct value on how important provider choice is to
them.
2.The product is less costly for Managed Care Organizations (MCOs), employers, and
employees.
3.Managed Care Organization (MCO) utilization management systems are so well
developed that they can affod to let people go out of the network without any increase in
costs.
4.Primary care physicians prefer to have their patients seek specialty care without
referrals -CORRECTANSWER 1.
The agency normally responsible for regulation of the financial solvency and subscriber
regulations of HMOs is the:
1.U.S. Department of Health and Human Services.
2.State insurance commission/department.
3.Medicaid agency/department.
4.Department of Taxation. -CORRECTANSWER 2.
Many hospitals develop affiliations with college-based nursing education programs to:
Exam (2026/2027) – American College of
Healthcare Executives Board of
Governors Examination for FACHE
Credential with Complete Questions &
Verified Answers
For the routine service cost center, an increase in the number of patient days over the
budgeted number of patient days will result in:
1. A higher average cost per patient day.
2. A lower average cost per patient day.
3. An increase in the budgeted fixed costs for the routine service cost center.
4.No change in the average cost per patient day. -CORRECTANSWER 2.
Which of the following balance sheet items would differ between a for-profit and a not-
for-profit healthcare organization?
1.Retained earnings.
2.Plant, property, and equipment.
3.Real estate.
4.Investments. -CORRECTANSWER 1.
,Which of the following leadership actions most clearly supports organizational
transformation toward total quality management?
1.Convening and chairing the Quality Council.
2.Changing the name of the quality department from QA to CQI.
3.Requiring all direct reports to attend an introductory course in TQM.
4.Hiring a customer service representative. -CORRECTANSWER 1.
In the healthcare field, the accountability of management is best measured by the:
1.Balance maintained between service quality and operational efficiency.
2.Results shown on the annual expense and income statement.
3.Balance maintained between physician satisfaction and patient needs.
4.Degree to which management's needs are met -CORRECTANSWER 1.
Consumer "report card" development and distribution has become a high priority for
managed care organizations because:
1.Measurements of performance have now become well established, standardized, and
accepted by all parties.
2.Purchasers are pressuring for disclosure of meaningful performance information for
use by buyers and consumers.
,3.Consumers in healthcare are now well organized, and managed care organizations
feel a need to satisfy them.
4.Physicians are increasingly encouraging their patients to evaluate managed care
organizations based on these report cards. -CORRECTANSWER 2.
Which of the following is not required for managing strategic adaptation?
1.Development of integrated continuums of care.
2.Development of successful hospital-physician partnerships.
3.Vertical and horizontal integration with out-of-area providers.
4.Programs of strategic leadership development for board members, managers,
physicians, and nurse leaders. -CORRECTANSWER 3.
What is an important advantage of physician participation in Independent Practice
Associations (IPAs) versus other affiliation arrangements with HMOs?
1.IPA arrangements normally pay physicians better than staff or group model
arrangements.
2.Physicians participating in IPAs can limit their dependence on any single HMO.
3.IPA arrangements avoid the serious tensions that arise between primary care and
specialty physicians.
.IPAs rarely use utilization management mechanisms like primary care gatekeeping and
preadmission certification. -CORRECTANSWER 2.
, The point-of-service product is the fastest growing managed care product in the
contemporary marketplace because:
1.It allows consumers to place a direct value on how important provider choice is to
them.
2.The product is less costly for Managed Care Organizations (MCOs), employers, and
employees.
3.Managed Care Organization (MCO) utilization management systems are so well
developed that they can affod to let people go out of the network without any increase in
costs.
4.Primary care physicians prefer to have their patients seek specialty care without
referrals -CORRECTANSWER 1.
The agency normally responsible for regulation of the financial solvency and subscriber
regulations of HMOs is the:
1.U.S. Department of Health and Human Services.
2.State insurance commission/department.
3.Medicaid agency/department.
4.Department of Taxation. -CORRECTANSWER 2.
Many hospitals develop affiliations with college-based nursing education programs to:
