Certification Practice Exam||Questions
And Answers With Rationales/Graded
A+/2026 Update/100% Correct
/Instant Download
Total Questions: 85
Time Allowed: 120 minutes
Format: Multiple choice
Target Audience: Health care administration students / certification candidates
(CHA, RHIA, CCA, CPHQ, or similar)
Section 1: Health Care Systems & Organizational Structure (Questions 1–15)
1. Which type of health care organization is owned by investors and operates for
profit?
• A) Nonprofit hospital
• B) Public health department
• C) For-profit hospital
• D) Faith-based clinic
Rationale : For-profit hospitals are investor-owned and distribute profits to
shareholders. Nonprofits reinvest surplus into services.
2. A hospital that provides complex surgical, trauma, and intensive care services is
best classified as:
• A) Primary care clinic
, • B) Tertiary care facility
• C) Skilled nursing facility
• D) Urgent care center
Rationale : Tertiary care involves specialized, high-tech services often delivered at
major hospitals or academic medical centers.
3. The primary governing body responsible for a hospital’s strategic direction and
quality oversight is the:
• A) Board of Trustees
• B) Medical executive committee
• C) Nursing leadership council
• D) Finance department
Rationale : The Board of Trustees holds fiduciary and legal responsibility for the
organization’s mission, strategy, and quality.
4. Which federal program provides health insurance primarily for individuals aged
65+?
• A) Medicaid
• B) Medicare
• C) CHIP
• D) TRICARE
Rationale : Medicare is federal health insurance for seniors (65+), certain younger
disabled people, and ESRD patients.
5. An accountable care organization (ACO) is primarily designed to:
• A) Increase hospital admissions
• B) Coordinate care and reduce costs
• C) Limit patient choice of providers
• D) Maximize fee-for-service revenue
, Rationale : ACOs align incentives to improve quality and reduce spending
through shared savings models.
6. The "Iron Triangle" of health care consists of:
• A) Doctors, nurses, administrators
• B) Cost, quality, access
• C) Inpatient, outpatient, post-acute
• D) Federal, state, local
Rationale : The Iron Triangle frames the trade-offs between controlling costs,
maintaining quality, and ensuring access.
7. A hospital merging with a physician group to form a single legal entity is an
example of:
• A) Virtual integration
• B) Horizontal integration Correction – Actually vertical integration.
Revised correct answer: C) Vertical integration
• D) Reverse integration
Rationale : Vertical integration combines different levels of care (hospital +
physician practices) under one ownership.
8. The agency that administers Medicare and Medicaid is:
• A) FDA
• B) CMS (Centers for Medicare & Medicaid Services)
• C) HRSA
• D) AHRQ
Rationale : CMS is the federal agency overseeing Medicare, Medicaid, CHIP, and
health insurance marketplace standards.
9. Which setting is most appropriate for post-surgical rehabilitation before
returning home?
• A) Long-term acute care hospital (LTACH)