– COMPLETE CONCEPT REVIEW &
PRACTICE MATERIALS (LATEST EDITION)
Description (100 words)
This study guide provides a complete and focused review for the 2026 MHA702 Test 3
examination, covering healthcare leadership, organizational behavior, quality management,
regulatory compliance, population health, strategic planning, reimbursement systems, and
performance improvement. The material emphasizes applied knowledge used by healthcare
managers in real-world operational decision-making. Content includes federal policy updates,
financial analysis essentials, data-driven management tools, risk mitigation approaches, and
patient-safety frameworks required for competent healthcare administration. Review questions
are modeled on actual examination styles used in MHA702 courses, ensuring learners
strengthen critical-thinking skills while mastering essential administrative competencies aligned
with current industry standards and best practices.
5 Keywords:
Healthcare Management, Quality Improvement, Strategic Planning, Compliance, Leadership
100 Exam-Style Questions & Answers
(Correct answers marked with )
1. Which leadership style emphasizes empowering employees and shared decision-making in
healthcare organizations?
A. Autocratic
B. Transformational
C. Laissez-faire
D. Transactional
2. The primary goal of strategic planning in healthcare organizations is to:
A. Increase regulations
B. Align organizational resources with long-term goals
,C. Replace clinical leadership
D. Reduce workforce numbers
3. What federal law mandates protection of patient health information?
A. EMTALA
B. HIPAA
C. MACRA
D. ACA
4. A root cause analysis (RCA) is primarily used to:
A. Assign staff fault
B. Identify underlying factors of an adverse event
C. Punish clinical errors
D. Evaluate financial risk
5. Benchmarking helps an organization:
A. Hide performance metrics
B. Compare performance against best-practice standards
C. Eliminate competitors
D. Reduce compliance audits
6. Which reimbursement system pays providers a fixed amount per diagnosis?
A. Fee-for-service
B. Capitation
C. DRG reimbursement
D. Global budgeting
7. The Balanced Scorecard measures organizational performance in:
A. Only financial outcomes
B. Four domains including internal processes and learning & growth
C. Patient satisfaction only
D. Clinical metrics only
8. What is the main purpose of a compliance program in healthcare?
A. Reduce marketing costs
B. Ensure adherence to laws and regulations
C. Increase revenue
D. Replace clinical guidelines
,9. Which leadership theory focuses on leaders adapting styles based on followers’ readiness?
A. Situational Leadership Theory
B. Complexity Theory
C. Trait Theory
D. Chaos Theory
10. The Triple Aim includes improving population health, enhancing patient experience, and:
A. Increasing taxes
B. Reducing per-capita costs
C. Expanding buildings
D. Hiring more staff
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MHA702 TEST 3 — QUESTIONS 11–100
11. What is the primary purpose of a health system’s mission statement?
A. Describe financial expectations
B. Define the organization’s core purpose and values
C. List marketing goals
D. Set clinical schedules
12. Which federal program ties reimbursement to quality performance metrics?
A. TRICARE
B. Value-Based Purchasing (VBP)
, C. CHIP
D. COBRA
13. A Gantt chart is used primarily for:
A. Patient assessment
B. Project scheduling
C. Revenue cycle management
D. Contract auditing
14. The main goal of Lean methodology in healthcare is to:
A. Increase staff workload
B. Reduce waste and increase value
C. Limit patient access
D. Maximize billing
15. Which financial statement shows an organization’s assets, liabilities, and equity?
A. Income statement
B. Cash flow statement
C. Balance sheet
D. Audit report
16. A sentinel event is defined as:
A. A minor error
B. An unexpected event causing death or serious harm
C. A billing mistake
D. A staffing conflict
17. What tool is used to measure patient satisfaction nationally?
A. OSHA survey
B. CAHPS survey
C. NHANES
D. MDS report
18. Capitation payments reimburse providers:
A. Per service
B. Per visit
C. Per patient per month regardless of use
D. Only after audits