FACHE EXAM FLASHCARDS ACHE BOARD
OF GOVERNORS STUDY GUIDE 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ OSHA Answer: Sets workplace safety standards and conducts
inspections.
◉ Current Ratio Answer: Current assets divided by current liabilities.
◉ Average Collection Period Answer: Average time to collect
receivables.
◉ Average Payment Period Answer: Average time to pay suppliers.
◉ Economic Events Answer: Recognized upon occurrence, not cash
flow.
◉ Descriptive Methods Answer: Summarize or describe observations.
◉ Inferential Methods Answer: Use observations for estimates or
predictions.
◉ Market Demand Answer: Consumer willingness to purchase goods or
services.
,◉ Market Potential Answer: Maximum possible sales volume in a
market.
◉ Sales Forecasting Answer: Predicting future demand using historical
data.
◉ Activities of Daily Living (ADLs) Answer: Basic self-care tasks
essential for daily living.
◉ Vertical Integration Answer: A hospital system that controls the
upstream and downstream to the hospital (i.e. purchasing an LTAC or
ECF)
◉ Horizontal Integration Answer: Merging with another hospital
providing similar services (i.e. MVH acquiring Good Sam)
◉ Utilization Management Answer: Reviewing healthcare while
services are provided.
◉ Executive Order 11246 Answer: Prohibits employment discrimination
by federal contractors.
◉ Executive Order 11375 Answer: Requires affirmative action for
women and minorities.
,◉ Healthcare Effectiveness Answer: Maintaining care quality while
controlling costs.
◉ Activities of Daily Living Answer: Measures independence in eating,
bathing, dressing, etc.
◉ Capital Asset Pricing Model (CAPM) Answer: Describes relationship
between market risk and expected return. Used to price risky assets (like
stocks) and determine whether the investment is reasonable.
◉ Emergency Medical Treatment and Labor Act (EMTALA) Answer:
Requires medical screening for emergency patients.
◉ Major Functions of Marketing Answer: Identifying markets,
promoting organization, managing relationships.
◉ Independent Physician Association (IPA) Answer: Physicians
negotiating contracts with insurers on behalf.
◉ Consolidated Omnibus Budget Reconciliation Act (COBRA) Answer:
Allows continuation of health benefits after job loss.
◉ Stochastic Modeling Answer: Financial modeling using random
variables for forecasts. (Visual: Archer shooting arrows at a target in the
fog, it's cha(s)otic)
, ◉ Monte Carlo Simulation Answer: Example of stochastic modeling in
finance.
◉ Incidence Answer: Number of new cases within a time period. (Risk
of developing the disease)
◉ Prevalence Answer: Total cases (old and new) at a specific time in
population. What is the disease burden in the population (how prevalent
is it?)
◉ Medical Screening Examination Answer: Assessment to determine if
an emergency exists.
◉ Patient Dumping Answer: Improperly transferring patients without
necessary treatment.
◉ Market Risk Answer: Potential financial loss due to market
fluctuations.
◉ Expected Rate of Return Answer: Anticipated increase in asset value
based on risk.
◉ Child Labor Restrictions Answer: Limits employment of minors
under 16 in hazardous jobs.
OF GOVERNORS STUDY GUIDE 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ OSHA Answer: Sets workplace safety standards and conducts
inspections.
◉ Current Ratio Answer: Current assets divided by current liabilities.
◉ Average Collection Period Answer: Average time to collect
receivables.
◉ Average Payment Period Answer: Average time to pay suppliers.
◉ Economic Events Answer: Recognized upon occurrence, not cash
flow.
◉ Descriptive Methods Answer: Summarize or describe observations.
◉ Inferential Methods Answer: Use observations for estimates or
predictions.
◉ Market Demand Answer: Consumer willingness to purchase goods or
services.
,◉ Market Potential Answer: Maximum possible sales volume in a
market.
◉ Sales Forecasting Answer: Predicting future demand using historical
data.
◉ Activities of Daily Living (ADLs) Answer: Basic self-care tasks
essential for daily living.
◉ Vertical Integration Answer: A hospital system that controls the
upstream and downstream to the hospital (i.e. purchasing an LTAC or
ECF)
◉ Horizontal Integration Answer: Merging with another hospital
providing similar services (i.e. MVH acquiring Good Sam)
◉ Utilization Management Answer: Reviewing healthcare while
services are provided.
◉ Executive Order 11246 Answer: Prohibits employment discrimination
by federal contractors.
◉ Executive Order 11375 Answer: Requires affirmative action for
women and minorities.
,◉ Healthcare Effectiveness Answer: Maintaining care quality while
controlling costs.
◉ Activities of Daily Living Answer: Measures independence in eating,
bathing, dressing, etc.
◉ Capital Asset Pricing Model (CAPM) Answer: Describes relationship
between market risk and expected return. Used to price risky assets (like
stocks) and determine whether the investment is reasonable.
◉ Emergency Medical Treatment and Labor Act (EMTALA) Answer:
Requires medical screening for emergency patients.
◉ Major Functions of Marketing Answer: Identifying markets,
promoting organization, managing relationships.
◉ Independent Physician Association (IPA) Answer: Physicians
negotiating contracts with insurers on behalf.
◉ Consolidated Omnibus Budget Reconciliation Act (COBRA) Answer:
Allows continuation of health benefits after job loss.
◉ Stochastic Modeling Answer: Financial modeling using random
variables for forecasts. (Visual: Archer shooting arrows at a target in the
fog, it's cha(s)otic)
, ◉ Monte Carlo Simulation Answer: Example of stochastic modeling in
finance.
◉ Incidence Answer: Number of new cases within a time period. (Risk
of developing the disease)
◉ Prevalence Answer: Total cases (old and new) at a specific time in
population. What is the disease burden in the population (how prevalent
is it?)
◉ Medical Screening Examination Answer: Assessment to determine if
an emergency exists.
◉ Patient Dumping Answer: Improperly transferring patients without
necessary treatment.
◉ Market Risk Answer: Potential financial loss due to market
fluctuations.
◉ Expected Rate of Return Answer: Anticipated increase in asset value
based on risk.
◉ Child Labor Restrictions Answer: Limits employment of minors
under 16 in hazardous jobs.
