Download Healthcare Management Multiple Choice Questions and Answers and more Exams Nursing in PDF only on Docsity!
ACHE BOG EXAM REAL EXAM
350 QUESTIONS WITH
CORRECT DETAILED ANSWERS
LATEST VERSION 2025
"A positive net present value indicates that the investment has a rate of return: - CORRECT ANSWER=> decision on which of the proposed capital projects will be funded" "For information on net cash flow from providing health services for a specific time frame, the decision maker should use the: - CORRECT ANSWER=> statement of cash flow" "Memorial Hospital offers a screening test as a public service for $.50 per test. Variable cost per unit are $.32. Fixed cost are $43,200 per month for the department performing the test. It is the only test done by this special department. the break-even point in the test is: - CORRECT ANSWER=> 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000)" "The most important factor in the success of the organizational internal control system is: - CORRECT ANSWER=> selection of the internal auditor" "Hampton Outpatient budgeted revenue from flu vaccinations at $20 per shot. Fixed cost total $5 per unit dose on 4,000 shots and remain unchanged within a relevant range of 1,500 shots to 6,400 shots. Variable cost of $10 per shot. After total revenue was budgets at $70,000, the clinic received a request from the local school district for flu vaccinations for its 1,000 students at a reasonable cost. If Hampton Clinic wants to increase operating income by $2,000, what should Hampton charge for additional shots. - CORRECT ANSWER=> The variable cost plus the incremental profit margin per shot." "Financial risk is an element in capital investment decisions and is determined by: - CORRECT ANSWER=> The additional risk placed on the firm when debt financing is used"
"The asset turnover ratio is useful in measuring managerial performance because it indicates the: - CORRECT ANSWER=> amount of resources required to generate a dollar of revenue" "A weighted average cost of capital is the: - CORRECT ANSWER=> economic cost to the organization of producing all required returns to capital" "In general, the net present value calculation assume: - CORRECT ANSWER=> borrowing and lending rates are equal with each period" "The difference between an accounting break-even point and an economic break-even point is that: - CORRECT ANSWER=> the economic break-even point provides the required rate of return to all suppliers of capital to the provider" "Under the capitation, the risks of over-utilization are shifted to the: - CORRECT ANSWER=> provider of the health service" "Which of the following ratios would be used to estimate cask flow for a specific time period: - CORRECT ANSWER=> Cash collected during period TO Revenue for period" "In developing workload measurements for estimating manpower requirements for budget preparation, the analyst should first: - CORRECT ANSWER=> forecast total admissions activity levels and patient days" "Under generally accepted accounting standards, bad debt are reported as a/an: - CORRECT ANSWER=> operating expense" "A technique used to shorten the in-house processing time of the accounts receivable cycle is a:
- CORRECT ANSWER=> "lock-box" agreement" "Which of the following best describes a plan for the development of a facility' physical plant? - CORRECT ANSWER=> a listing of the changes, sequence, and cost to meet projected capacity requirements" "In planning to purchase new equipment, a healthcare facility should always be sure: - CORRECT ANSWER=> that the purchase is part of the facility's capital plan" "The selection of major item of equipment should be: - CORRECT ANSWER=> guided by a selection group composed of the users and maintainers of that equipment"
"Membership of the healthcare information systems steering committee should comprise: - CORRECT ANSWER=> representatives of administration, physicians leadership, information systems management, and major user departments" "The most important factor influencing specifications for individual information systems in healthcare organizations should be: - CORRECT ANSWER=> user requirements" "Of the following, the most important task in evaluating vendor information system products is:
- CORRECT ANSWER=> talking directly with others who have used the products you are considering" "As healthcare networks development, the level of information systems consolidation should be driven by: - CORRECT ANSWER=> the business, clinical and operating requirements of the emerging organization" "Information systems needed for financial planning and control in healthcare organization include: - CORRECT ANSWER=> budgeting, cost accounting, case-mix analysis, and financial modeling" "Outcomes assessments required by managed care will require more advanced clinical information systems, such as: - CORRECT ANSWER=> computerized protocols to aid in diagnosis and treatment planning" "With respect to the processes by which healthcare organizations maintain the confidentiality, security, and integrity of the medical record, all of the following statements are true EXCEPT: - CORRECT ANSWER=> the original medical record of a patient being transferred from one healthcare organization to another may accompany the patient to new organization" "All of the following are commonly recognized to be right of each patient EXCEPT the right to: - CORRECT ANSWER=> communicate with caregiver in the language the patient's choosing" "All of the following statements about documentation in the medical record are true EXCEPT: - CORRECT ANSWER=> verbal orders can only be accepted by registered nurses" "Current JCAHO guidelines regarding the design of new patient care processes include all of the following EXCEPT: - CORRECT ANSWER=> the design team includes physicians or their designees"
"Current JCAHO guidelines regarding measurements (to collection of data) include all of the following EXCEPT: - CORRECT ANSWER=> the data collection processes should be consistent with those of the JCAHO's "10 step method" for quality assessment" "Which of the following is a false statement? Guidelines produced by the Agency for Health Care Policy and Research - CORRECT ANSWER=> rarely need to be revised" "Which of the following statements about Malcolm Baldrige National Quality Award is true? - CORRECT ANSWER=> Healthcare organizations were able to receive the award beginning in 1996" "Which of the following statements most accurately describe the HEDIS, Health Plan Employer Data and Information Set? - CORRECT ANSWER=> HEDIS quality indicators evaluate preventive services, prenatal care, acute and chronic illness, and mental health and substance abuse program" "The governing authority assures itself about the quality of care by: - CORRECT ANSWER=> approving the process and then following up regularly and continuously to see that it is being used" "A non-legitimate reason to release information from a patient's medical record is when: - CORRECT ANSWER=> requested by the spouse or next of kin" "In the past, hospitals have been less effective in lobbying than physicians because: - CORRECT ANSWER=> hospitals do not have a vote" "In general, courts exhibit what attitude regarding controversies over medical staff privileges? - CORRECT ANSWER=> If the decision were supported by reasonable evidence, courts will not substitute their judgment for that of the hospital board" "Under federal law, whenever a patient comes to a hospital emergency department with an emergency condition: - CORRECT ANSWER=> with few expectations, the patient's condition must stabilize before he or she is transferred or discharged" "In considering applications for medical staff privileges, hospitals receive reports from the US Government clearing house on malpractice payments and adverse medical staff licensure actions. In general, these reports have had which effect? - CORRECT ANSWER=> Reports have rarely led hospitals to make privileging decisions they would not have made otherwise"
"When an acute healthcare facility is part of a parent-subsidiary type corporation, that facility typically is: - CORRECT ANSWER=> the subsidiary" "Two independent healthcare organizations interested in discussing a joint venture to initiate a cancer treatment program would be wide to initially consult with their legal counsel to determine if their: - CORRECT ANSWER=> discussions might violate antitrust statues." "The healthcare executive with opposing duties (obligations) meeting one of which makes it impossible to meet other has a : - CORRECT ANSWER=> conflict of interest" "The best way to describe health fairs, screening programs, and smoking cessation classes provided by healthcare organizations is that they are: - CORRECT ANSWER=> community education programs" "The ethical precepts (organizational philosophy) that guide an organization's activities are found in a variety of sources that are: - CORRECT ANSWER=> written and unwritten" "The most common and useful ways to overcome resistance to change in organizations are: - CORRECT ANSWER=> education and communication" "Coordination among governance, management, and professional staff is a major problem for most healthcare organizations. A common way to solve the problem of coordination is to: - CORRECT ANSWER=> have overlapping membership on committee that are part of each group" "In effort to encourage licensed clinical staff to engage in continuing education, healthcare executives are given substantial assistance by the fact that these professionals: - CORRECT ANSWER=> must meet requirements of their certifying group" “CEO Compensation should be based on: - CORRECT ANSWER=> what the institution would have to pay for a similarly prepared person if that person were employed elsewhere" "An essential function of the governing board is to: - CORRECT ANSWER=> approve the mission, vision, and long-range plan" "The key to enhancing board effectiveness is: - CORRECT ANSWER=> organizing the board's work" "Members of the medical staff are eligible for full membership on the governing board in the same manner as other individuals: - CORRECT ANSWER=> when not legally prohibited"
"The Chief Executive Officer: - CORRECT ANSWER=> represents the board internally and externally" "Regarding the budget, the board: - CORRECT ANSWER=> establishes guidelines and makes final choices among competing opportunities" "The individual or group responsible for establishing policy, maintaining quality of care, and providing for institutional management planning is the: - CORRECT ANSWER=> Governing Body" "A correct statement regarding trustee serving as fiduciaries is that they can: - CORRECT ANSWER=> be indicted for alleged theft of facility funds and improper expenditures of facility funds for personal reasons." "Ultimate responsibility for the mission statement rests with the: - CORRECT ANSWER=> Governing Board" "A key reason for choosing board members is because: - CORRECT ANSWER=> of what they can do for the organization" "The bylaws of healthcare organization should include which of the following? - CORRECT ANSWER=> Composition of the governing board, committee, and officers" "Successful approaches to strategic planning include: - CORRECT ANSWER=> a well-written mission statement, long-range plane, and fiscal plan plus the history and discussion surrounding them" "The primary challenge facing a prospector is: - CORRECT ANSWER=> managing diversification successfully, to guard against expanding too rapidly or into areas they have little knowledge" "In the introductory stage of a product life cycle: - CORRECT ANSWER=> the introductory stage can be short and the introductory stage can be long and sales and revenue growth is slow" "The primary task of marketing is to: - CORRECT ANSWER=> bring about exchanges of values" "It would be incorrect to say that: - CORRECT ANSWER=> an organization's image is largely the result of public relations, advertising, selling, and communication efforts."
"As a minimum, an organization demonstrates "good faith" in collective bargaining with a union by: - CORRECT ANSWER=> receiving union proposals and meeting with the union from time to time to discuss the proposals" "Large, multidisciplinary work groups with health services organizations are likely to suffer from:
- CORRECT ANSWER=> "free-riding" when individuals can benefit from the work of the group without making a suitable contribution" "The major benefit of integrative dimension of negotiation over the distributive dimension is that the: - CORRECT ANSWER=> amount of resources to be distributed is increased, allowing both parties to reach their reservation prices" "As managerial vacancies occur, the availability of well-trained individuals who understand the organization's mission, vales, culture and strategy is enhanced by: - CORRECT ANSWER=> the use of an effective succession planning program" "Capital rationing in the investment decision process refers to the: - CORRECT ANSWER=> decision on which of the proposed capital projects will be funded" “According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or minimize the negative implications of conflict of interest is to: a. Develop a public relations plan to address potential conflict-of-interest scenarios. b. Not participate in the specific decision where conflict may exist. c. Ensure members submit annual lists of major activities and holdings for inspections. d. Make the conflict known to those in superior positions. - CORRECT ANSWER=> d. Make the conflict known to those in superior positions" "The principles of quality improvement require that healthcare executives change their management philosophy from: a. Finding fault with employees to finding problems in processes. b. Finding fault with employees to involving them in the improvement of processes. c. Focusing on enhanced inspection techniques to focusing on variance. d. Focusing on employees' roles to focusing on process outcomes. - CORRECT ANSWER=> a. Finding fault with employees to finding problems in processes." "What type of problem arises when a healthcare executive knowingly allows the organization to continue double billing?
a. An ethical problem for the healthcare executive, but may not be grounds for dismissal if organizational policy is not clearly stated. b. An actual conflict of interest, even absent a direct economic benefit to the healthcare executive. c. An ethical problem for the employee if the healthcare executive receives direct economic benefit. d. An ethical problem if it clearly violates state or federal law. - CORRECT ANSWER=> b. An actual conflict of interest, even absent a direct economic benefit to the healthcare executive." "Which of the following is a unit of measure commonly used to determine physicians' clinical productivity? a. RVU b. CMS c. IPO d. CPU - CORRECT ANSWER=> a. RVU" "Which of the following third-party reimbursement methods provides the largest financial incentive for the provider to reduce cost? a. Charge-based b. Cost-based c. Prospective payment d. Per diem - CORRECT ANSWER=> c. Prospective payment" "Statements of earnings, financial positions, changes in financial position and retained earnings are required to be submitted yearly by all: a. Publicly owned healthcare organizations. b. Privately owned healthcare organizations. c. Government owned healthcare organizations. d. Faith-based owned healthcare organizations. - CORRECT ANSWER=> a. Publicly owned healthcare organizations." "Which of the following is an Example of a capital expenditure? a. Land that is purchased for resale. b. Surgical equipment with a useful life of six months. c. A building with a useful life of 20 years. d. Medical supplies used for patient care. - CORRECT ANSWER=> c. A building with a useful life of 20 years."
a. Are likely to use a larger sample size. b. Are more useful in designing improvements to a program. c. Are more precise in designing improvements to a program. d. Are useful only when maintaining objectivity is not important - CORRECT ANSWER=> b. Are more useful in designing improvements to a program." "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: a. Inseparability. b. Intangibility. c. Heterogeneity. d. Perishability. - CORRECT ANSWER=> c. Heterogeneity." "What purpose do market plans fulfill for the healthcare organization? a. Provide a business plan (or plans) as a subset of the organization's marketing plan. b. Present general goals for the organization to attain in the next three to five years. c. Develop promotion methods to be used in attaining the organization's objectives. d. Provide specific objectives for utilization attainment the next fiscal year. - CORRECT ANSWER=> d. Provide specific objectives for utilization attainment the next fiscal year." "The five major functions of marketing are: a. Identifying markets, promoting the organization, recruitment of providers, managing external relationships, patient selection. b. Identifying markets, health promotion, managing external relationships, patient selection, attracting capable workers. c. Identifying markets, promoting the organization, managing external relationship, convincing patients to select the organization, attracting capable workers. d. Identifying markets, promoting the organization, managing external relationships, strategic planning, physician recruitment. - CORRECT ANSWER=> c. Identifying markets, promoting the organization, managing external relationship, convincing patients to select the organization, attracting capable workers." "Forecasting organizational need for human resources by focusing on specific position openings that are likely to occur and using these for planning is called: a. Demand-pull approach. b. Supply-push approach.
c. Succession analysis. d. Transition matrix. - CORRECT ANSWER=> a. Demand-pull approach." "A health services organization should use which of the following sequential processes to help establish human resources (HR) objectives and policies? a. Analyze the current HR situation, forecast HR demand, reconcile with the budget, forecast HR supply. b. Design HR recruitment and selection activities, develop an HR compensation plan, and establish HR appraisal systems. c. Determine best HR job structure, perform HR job evaluations, establish HR training and development plan. d. Conduct HR job analysis, determine best HR job structure, and establish HR information system. - CORRECT ANSWER=> a. Analyze the current HR situation, forecast HR demand, reconcile with the budget, forecast HR supply." "Probability models that forecast the internal flow of employees from one job category to another use a: a. Graphic rating approach. b. Supply-push approach. c. Transition matrix. d. Curriculum path. - CORRECT ANSWER=> c. Transition matrix." "Forecasting the internal supply of employees as they move from their current jobs into others through promotions, lateral moves and terminations is called: a. Graphic rating approach. b. Supply-push approach. c. Demand-pull approach d. Rating scale method. - CORRECT ANSWER=> b. Supply-push approach." "Which of the following describes the conflict management strategy that would have the most immediate effect on reducing conflict behavior? a. Imposition of formal authority to resolve or suppress conflict. b. Implementation of substantial, super-ordinate goals that require cooperation among units. c. Rotation of members of one unit into another unit. d. Provision of intergroup training that requires listing of perceptions and identifying differences. - CORRECT ANSWER=> a. Imposition of formal authority to resolve or suppress conflict."
"The master site plan (or master facility plan) for a healthcare organization: a. Describes future facility needs (either renovation or new construction) necessary to meet strategic and operational needs. b. Provides detailed design documents for all construction programs along with specific costs for each project. c. Must be prepared by an outside planning or architectural firm to ensure sufficient objectivity. d. Is necessary to ensure that the organization complies with certificate of need and other regulatory requirements. - CORRECT ANSWER=> a. Describes future facility needs (either renovation or new construction) necessary to meet strategic and operational needs" "Which of the following statements best describes the statistics budget? a. It combines volume and expense rates to forecast costs. b. It is a profit forecast for the coming year. c. It combines volume and reimbursement data to forecast revenues. d. It provides input date for other budgets. - CORRECT ANSWER=> d. It provides input date for other budgets." "All areas of healthcare facilities are subject to safety, convenience and other regulatory requirements as dictated by the state life safety codes, JCAHO, OSHA, state fire marshal, etc. Which area of the facility typically has the highest standards? a. The energy plant. b. Highly used public areas. c. Areas under construction. d. Patient care areas. - CORRECT ANSWER=> d. Patient care areas." "The best way to reduce/contain the costs of distributing supplies throughout an organization is to: a. Purchase the most modern supply distribution system for your organization. b. Minimize the number of times an item is handled from the time it is received by the organization to the time it is used. c. Utilize a computerized materials management system that allows the organization to minimize inventory levels. d. Negotiate a contract with an outside vendor who specializes in supply distribution to provide these services. - CORRECT ANSWER=> b. Minimize the number of times an item is handled from the time it is received by the organization to the time it is used."
"The objective of maintenance and repair services is to keep the facility and its equipment operating like new. This goal is best achieved by emphasizing: a. Prevention. b. Efficiency. c. Productivity. d. Safety. - CORRECT ANSWER=> a. Prevention." "The facility's plan for a healthcare organization may include plans for renovation or new construction, energy requirements, acquisition of new property, financing options, etc. However, the facility plan begins with an estimate of each service or department's: a. Operational needs. b. Parking needs. c. Staffing needs. d. Equipment needs. - CORRECT ANSWER=> a. Operational needs." "An important management principle that should guide the development of information systems in healthcare organizations is to: a. Treat information as an essential organizational resource. b. Delegate all decisions about information technology to technical specialists. c. Employ consultants to set priorities for systems to be developed. d. Always buy the newest system available to avoid technical obsolescence - CORRECT ANSWER=> a. Treat information as an essential organizational resource." "Which of the following is a major priority for system development in the managed care environment? a. Development of enterprise-wide computer networks. b. Development of repositories of computerized patient records. c. Development of operational inpatient systems. d. Development of strategic decision support systems. - CORRECT ANSWER=> c. Development of operational inpatient systems." "Which of the following is considered the best source of information to help a healthcare organization improve its existing services? a. Ongoing patient and internal customer satisfaction surveys. b. Focus groups to gather information and statistics from non-patients. c. Telephonic surveys of anyone who may decide to use the healthcare organization. d. Weekly meetings with staff members to determine organizational deficiencies - CORRECT ANSWER=> d. Weekly meetings with staff members to determine organizational deficiencies"
a. Centralize all computer activities. b. Use computer equipment from only one manufacturer. c. Use computer software from only one vendor. d. Standardize data definitions and data structures. - CORRECT ANSWER=> d. Standardize data definitions and data structures." "Which of the following is a developing technology that will help control unauthorized access to computerized information? a. Optical scanners. b. Biometric access control devices. c. Wireless terminals. d. High-speed modems. - CORRECT ANSWER=> b. Biometric access control devices." "In negotiating a contract for an information system, healthcare organizations should: a. Form a negotiating team and utilize legal counsel. b. Use the standard contract provided by the system vendor. c. Employ a consultant from among a list provided by the vendor. d. Use a cost-plus contract to maximize flexibility in system design - CORRECT ANSWER=> a. Form a negotiating team and utilize legal counsel." "Which of the following is the most important factor to consider in evaluating vendor software packages? a. Size of the vendor's marketing staff. b. Ability of the software to interface with existing systems. c. Programming language used to write the software. d. Geographic location of the vendor's corporation office - CORRECT ANSWER=> b. Ability of the software to interface with existing systems." "The CIO for a healthcare organization is typically responsible for which of the following functions? a. Information systems and finance. b. Medical Records and patient registration c. Telecommunications and public relations. d. Information systems and telecommunications. - CORRECT ANSWER=> d. Information systems and telecommunications." "In selecting an information system, a consultant can best be used to:
a. Chair the selection committee. b. Make the final selection decision. c. Provide technical information and an outside prospective. d. Handle all communications and prospective vendors. - CORRECT ANSWER=> c. Provide technical information and an outside prospective." "The Information Systems Steering Committee for a healthcare organization should perform which of the following duties? a. Information systems planning, selection of software and development of related organizational policies. b. Selection and supervision of key information systems personnel. c. Negotiation of contracts with vendors for equipment, software and service. d. Design and development of the information system software. - CORRECT ANSWER=> a. Information systems planning, selection of software and development of related organizational policies." "All of the following are primary functions of the information services department except: a. Ensuring the integrity, quality and security of data. b. Archiving and retrieving data. c. Training and supporting users. d. Utilizing information for operational decision making. - CORRECT ANSWER=> d. Utilizing information for operational decision making." "Information system departments most often utilize which one of the following methods to ensure confidentiality? a. Issue security codes and limit access to the system. b. Centralize access to the computer system. c. Do not allow physician and vendor access to the system. d. Monitor and audit all entries into the system. - CORRECT ANSWER=> a. Issue security codes and limit access to the system." "Who has the primary responsibility to assure and maintain the integrity and security of electronic data in a healthcare organization? a. The Information Services Steering Committee. b. The Information Services Department. c. The CIO.
