FACHE EXAM PRACTICE TEST QUESTIONS AND ANSWERS
1. According to ACHE's Code of Ethics, one way that healtcare executives
can avoid or minimoze the negative implications of conflict of interest:
Make the conflict known to those in superior positions
2. The principles of quality improvement require that healthcare
exectutive change their management philosophy from: Finding fault with
employees to finding problems in processes
3. What type of problems arises when a healthcare executive knowingly
allows the organization to continue double billing: An actual conflict of
interest, even absent a direct economic benefit to the healthcare
exective
4. Which of the following is a unit of measure commonly used it
determine physicians' clinical productivity: Relative Value Units (RVUs)
5. Which of the following third-party reimbursement methods provides the
largest financial incentives for the provider to reduce cost: Prospective
pay- ment (PPS)-Medicare payment based on predetermined-fixed
amount
6. Statements of earnings, financial positions, changes in financial
position and retained earnings are required to be submitted yearly by all:
Publicly owned healthcare organizations
7. Which of the following is an example of a capital expenditure: A
building with a useful like of 20 years
8. What is the correct order of stages for accomplishing
organizational change: Identifying, planning, implementation,
evaluation
9. Boards make better strategic decisions of they use information that is: -
Focused on measurable outcomes of service quality and economic a
validity
10.The central role of the health services organization's board includes all
of the following: Support in managing important service programs of
departments
11.the first role of the governing body is to: Set objectives and develop
policy to guide the organization in ache ing its mission
12.Internal members of the healthcare organization's governing body:
Often include the CEO, medical director, and CFO
13.In assessing the advantage of using a focus group over a survey in
1/9
,FACHE EXAM PRACTICE TEST QUESTIONS AND ANSWERS
evaluating a program, one could say that focus groups:: Are more
useful in designing improvements to a program
14.From a marketing viewpoint, the development of standards of practice,
clinical pathways, clinical guidelines and protocols can all be viewed as
efforts to deal with which unique aspect of delivering services:
Heterogeneity
2/9
, FACHE EXAM PRACTICE TEST QUESTIONS AND ANSWERS
15.What purpose do market plans fulfill for the healthcare organization:
Pro- vide specific objectives for utilization attainment the next fiscal
year
16.The five functions of marketing are: Identifying markets,
promoting the organization, managing external relationship,
convincing patients to select the organization, attracting capable
workers
17.Forecasting organizational need for human resources by focusing on
specific position openings that are likely to occur and using these for
plan- ning called: Demand-pull approach
18.A health services organization should use which of the following
sequen- tial processes to help establish human resources objectives and
policies: - Analyze the current HR situation, forecast HR demand,
reconcile with the budget, forecast supply
19.Probability models that forecast the internal flow of employees from
one job category to another use a: Transition matrix--model internal
flow of HR-historical movement of one job to another
20.Forecasting the internal supply of employees as they move from their
current jobs into others through promotions, lateral move and termination
is called: Supply-push approach
21.Which of the following describes the conflict management strategy that
would have the most immediate effect on reducing conflict behavio:
Imposi- tion of formal authority to resolve or suppress conflict
22.Multi-rather assessment (360 degrees feedback) of managers in health-
care organization's is best used: In the development of a specific action
plan by appraises
23. Behaviorally anchored rating scales (BARS) for specific jobs can be: -
Used to identify component of job behaviors
24.In the amount of charity care increased rom one reporting period to
the next, which of the following would occur: Unrestricted net assets
would decrease
25.Which would be a reasonable basis on which to allocate
administrative overhead cost: Amount of supplies used
26. The effective cost of debt is roughly the same for both not-for-profit
and investor-owned organization's becasue: The tax deductibility of
3/9
1. According to ACHE's Code of Ethics, one way that healtcare executives
can avoid or minimoze the negative implications of conflict of interest:
Make the conflict known to those in superior positions
2. The principles of quality improvement require that healthcare
exectutive change their management philosophy from: Finding fault with
employees to finding problems in processes
3. What type of problems arises when a healthcare executive knowingly
allows the organization to continue double billing: An actual conflict of
interest, even absent a direct economic benefit to the healthcare
exective
4. Which of the following is a unit of measure commonly used it
determine physicians' clinical productivity: Relative Value Units (RVUs)
5. Which of the following third-party reimbursement methods provides the
largest financial incentives for the provider to reduce cost: Prospective
pay- ment (PPS)-Medicare payment based on predetermined-fixed
amount
6. Statements of earnings, financial positions, changes in financial
position and retained earnings are required to be submitted yearly by all:
Publicly owned healthcare organizations
7. Which of the following is an example of a capital expenditure: A
building with a useful like of 20 years
8. What is the correct order of stages for accomplishing
organizational change: Identifying, planning, implementation,
evaluation
9. Boards make better strategic decisions of they use information that is: -
Focused on measurable outcomes of service quality and economic a
validity
10.The central role of the health services organization's board includes all
of the following: Support in managing important service programs of
departments
11.the first role of the governing body is to: Set objectives and develop
policy to guide the organization in ache ing its mission
12.Internal members of the healthcare organization's governing body:
Often include the CEO, medical director, and CFO
13.In assessing the advantage of using a focus group over a survey in
1/9
,FACHE EXAM PRACTICE TEST QUESTIONS AND ANSWERS
evaluating a program, one could say that focus groups:: Are more
useful in designing improvements to a program
14.From a marketing viewpoint, the development of standards of practice,
clinical pathways, clinical guidelines and protocols can all be viewed as
efforts to deal with which unique aspect of delivering services:
Heterogeneity
2/9
, FACHE EXAM PRACTICE TEST QUESTIONS AND ANSWERS
15.What purpose do market plans fulfill for the healthcare organization:
Pro- vide specific objectives for utilization attainment the next fiscal
year
16.The five functions of marketing are: Identifying markets,
promoting the organization, managing external relationship,
convincing patients to select the organization, attracting capable
workers
17.Forecasting organizational need for human resources by focusing on
specific position openings that are likely to occur and using these for
plan- ning called: Demand-pull approach
18.A health services organization should use which of the following
sequen- tial processes to help establish human resources objectives and
policies: - Analyze the current HR situation, forecast HR demand,
reconcile with the budget, forecast supply
19.Probability models that forecast the internal flow of employees from
one job category to another use a: Transition matrix--model internal
flow of HR-historical movement of one job to another
20.Forecasting the internal supply of employees as they move from their
current jobs into others through promotions, lateral move and termination
is called: Supply-push approach
21.Which of the following describes the conflict management strategy that
would have the most immediate effect on reducing conflict behavio:
Imposi- tion of formal authority to resolve or suppress conflict
22.Multi-rather assessment (360 degrees feedback) of managers in health-
care organization's is best used: In the development of a specific action
plan by appraises
23. Behaviorally anchored rating scales (BARS) for specific jobs can be: -
Used to identify component of job behaviors
24.In the amount of charity care increased rom one reporting period to
the next, which of the following would occur: Unrestricted net assets
would decrease
25.Which would be a reasonable basis on which to allocate
administrative overhead cost: Amount of supplies used
26. The effective cost of debt is roughly the same for both not-for-profit
and investor-owned organization's becasue: The tax deductibility of
3/9
