ACHE - BOG Exam - Additional Sample Questions

When a healthcare organization's goal conflict with the stated position of a professional society, the professional individual's responsibility is to: a. Make known the stance of the profession and reconcile the divergent position b. Enlist the support of professional colleagues to alter the organization's position c. Support the professional society's position d. Support the organization's position

...

Incident reports should be initiated by: a. A member of the medical/professional staff or by any employee b. Any person with direct patient care responsibilities c. The department director or supervisor d. The risk management/quality assurance coordinator

a. A member of the medical/professional staff or by any employee

The governing authority of a healthcare facility can terminate the privileges of any member of the medical/professional staff: a. At any time, it follows its own adopted procedures b. At any time, with or without due process c. Only if termination is recommended by the medical/professional executive committee d. Only if termination is recommended by the medical/professional staff

a. At any time, it follows its own adopted procedures

When third-party policies and programs impede the healthcare facility's fiscal capacity to renovate and model its plant as routinely scheduled, the healthcare facility - to protect itself-should first: a. Delay capital improvements until funds are available b. reduce the level of operating services c. Limit the number of admissions from selected third-party payment sources d. Resort to the regulatory agency to obtain a waiver

a. Delay capital improvements until funds are available

Accident rates among personnel continue to rise and are distributed among all departments. What would be your best initial action in finding a comprehensive solution to this problem? a. Form a safety committee of key personnel to review reports of all accidents and make recommendations for corrections b. Required each department head to analyze his/her department's accidents in order to determine the causes and find methods of corrections c. Institute a safety education program by department d. Recommend that the personnel committee formulate an effective accident-prevention program

a. Form a safety committee of key personnel to review reports of all accidents and make recommendations for corrections

When facility maintenance is deferred, which of the following outcomes is predictable? a. Higher cost b. Lower costs c. Deferred risk d. Higher liability exposure

a. Higher cost

A case-mix cost allocation system that identifies cost associated with the final (as opposed to intermediate) output provides: a. Managers with more accurate information about true costs and thus improves their ability to control b. Managers with a systems device to deal with the problem of human resources allocation c. Auditors with a better understanding of the financial status of the institution in a relationship to agreed-upon goals and objectives d. Governing authorities with better insight into the future growth and development of healthcare facilities

a. Managers with more accurate information about true costs and thus improves their ability to control

Because quality of care is a primary concern, an effective information system must include: a. Objective and subjective reporting methods, incorporating peer judgments about patient b. Preparation and evaluation of statistical and financial reports, on a regular basis c. Weekly reports regarding census data and cost per occupied bed d. A monthly comparison of actual expenses to budgeted expenses, on a line-item basis

a. Objective and subjective reporting methods, incorporating peer judgments about patient

Under generally accepted accounting standards, bad debts are reported as a/an: a. Operating expense b. Deduction from net revenue c. Contractual allowances d. Deduction from gross revenue

a. Operating expense

Which of the following activities can best help identify the most efficient staffing patterns for a healthcare organization? a. Periodic job-analysis to determine productivity levels b. Review of industry standards by region c. Desk audits of job descriptions d. Frequent on-site visits to work locations

a. Periodic job-analysis to determine productivity levels

The primary function of an extended-care unit is to provide: a. Post-acute care services in a rehabilitation-oriented environment b. Self-care facilities for ambulatory patients c. Additional facilities for geriatric cases d. More intensive nursing care for chronically ill patients

a. Post-acute care services in a rehabilitation-oriented environment

The major purpose of a dress code of ethics for members of a healthcare executives association is to: a. Provide guidance to members in their own professional conduct b. Increase public understanding of the professional association c. Provide a framework for disciplining members when necessary d. Provide a framework for annually evaluating professional performance

a. Provide guidance to members in their own professional conduct

The principle advantage for an inpatient facility to affiliate with a geriatric-care program is that such an arrangement: a. Provides for a continuum of care for patients b. Permits patients to receive care in the home settings c. Requires less skilled personnel to provide the care d. Is less costly to the patient

a. Provides for a continuum of care for patients

At this time of restriction and complexity in the healthcare environment, the process of strategic planning for the healthcare organization requires the organization to develop a plan that: a. Responds to the healthcare needs of the community b. Meets the needs of its service area population c. Is coordinated with the medical staff interests d. Gives high priority to marketing

a. Responds to the healthcare needs of the community

Controlling the cost of accounts receivables is a heavily affected by: a. The time or length of the payment cycle b. The dollar amount of credit granted to individuals c. The total dollar amount of receivables carried on the books d. Working capital management

a. The time or length of the payment cycle

In achieving the goals of an organization, the most important management practice is: a. Allowing the line managers to determine their own goals b. Applying goals uniformly at all organizational levels c. Holding operational-level meetings to compare objectives d. Establishing organizational objectives based on the goals of the management team

b. Applying goals uniformly at all organizational levels

If a physician abuses a patient in the healthcare organization, initial corrective action should be taken by the: a. Chief of Staff b. Chief of Service ( department chairman) c. Nursing unit supervisor d. CEO

b. Chief of Service ( department chairman)

IN developing a health promotion program for marketing to business, the most important factor is: a. Generation of sufficient additional revenue to justify potential risk. b. Development of a high-quality product to serve the needs and interests of the clientele c. Enhancement of the institution's image within the community d. Achievement of institutional goals and missions by helping to ensure good health.

b. Development of a high-quality product to serve the needs and interests of the clientele

Performance rating scales-which are the oldest and most widely used performance appraisal procedures - are of two general types: The continuous scale and the: a. Equitable scale b. Discrete Scale c. Field Rating d. Behavioral anchored rating

b. Discrete Scale

The primary purpose of a planning task force for a management information system (MIS) is to: a. Make recommendations to the governing authority b. Gather information on data needs in order to effectively evaluate vendors. c. Reduce the necessity for user feedback d. Implement the MIS system of the facility

b. Gather information on data needs in order to effectively evaluate vendors

When a member of the medical/professional staff requires disciplinary action, it is ultimate responsibility of the: a. CEO of the healthcare organization b. Governing authority c. Medical director or chief of staff d. Chief of the clinical service (department chairman)

b. Governing authority

To work effectively with the media, healthcare executives must: a. Bed accessible at all times to the media b. Increase their knowledge of - and sensitivity to- the media's function c. Employ a public relations officer to control the release of all information d. Issue press releases on a timely basis

b. Increase their knowledge of - and sensitivity to- the media's function

A management information system task force to plan for system design and implementation should, first of all, include: a. Medical records, financial management, nursing service b. Managers of appropriate healthcare organization departments c. Information systems consultants, CEO, financial management d. Governing authority, medical staff, nursing service

b. Managers of appropriate healthcare organization departments

The cultural climate of an organization affects its recruiting procedure because: a. It reduces employee turnover and absenteeism b. Organizations seek applicants whose attitude, values, and goals are consistent with those of the organization c. Applicants who cannot support a given culture will be unwilling to work for that organization d. Applicants look only to organizations that portray a positive cultural climate

b. Organizations seek applicants whose attitude, values, and goals are consistent with those of the organization

The management accountability of a senior executive can best be determined by a formal evaluation of performance if the: a. Governing authority receives copies of the evaluation of performance if the: b. Performance objectives are discussed and agreed upon at the time of employment c. Review is conducted annually d. Review is conducted by a committee

b. Performance objectives are discussed and agreed upon at the time of employment

The most useful way for a healthcare organization to deal with outside regulatory and credentialing bodies is to: a. Identify opportunities to influence political outcomes b. Regularly maintain both formal and informal relationships with these agencies c. Deal with these agencies only in written form so as to have a clear paper trail subsequent review and analysis d. Provide on the minimum amount of information required to comply with the regulations of the agency

b. Regularly maintain both formal and informal relationships with these agencies

Temporary working capital needs should be financial through: a. Leasing equipment b. Short-term debt c. Equity financing d. Accounts receivable

b. Short-term debt

One of the best ways to determine the total market size and share of each competitor in that market is to: a. Survey the opinions of the sales force or the medical/professional staff. b. Survey a stratified sample of patients/clients c. Hire a consultant d. Estimate the production capacity of each competitor

b. Survey a stratified sample of patients/clients

Operational planning can be correctly defined as: a. A function of establishing the annual budget by accumulating departmental information b. The process by which short-range objectives and actions are established and implemented in accordance with the strategic plan c. An annual process of developing, evaluating, and implementing goals based on community needs d. Determining the major types of services offered based on profit margins.

b. The process by which short-range objectives and actions are established and implemented in accordance with the strategic plan

All of the following are essential components of strategic planning except: a. The corporate mission statement b. Timetables for activity completion c. Competitive analysis d. Assessment of the external environment

b. Timetables for activity completion

To evaluate changes in levels of revenue and expenses as a result of changes occurring during the year, management can: a. Use a "step-down method" b. Use the contribution margin approach to budgeting c. Use the capital approach to budgeting d. Project existing trends forward for one year

b. Use the contribution margin approach to budgeting

The primary reason for the decision to move a freestanding voluntary facility to an investor-owned healthcare organization is: a. economy of scale b. access to equity market c. access to patient d. improve visibility in the community

b. access to equity market

Short-range planning is enhanced if a strategic plan has been adopted because: a. Potential programs can be eliminated easily if not part of the strategic plan b. Use of space has already been determined c. A frame of references is already in place d. Operational problems can be quickly resolved

c. A frame of references is already in place

A key concept for marketing healthcare is to: a. Maximize the customer's participation in the selling process b. Advertise and promote existing services c. Adapt services to customer's needs d. Emphasize specialization

c. Adapt services to customer's needs

Materials management can best be defined as a system effective: a. Purchasing of materials at the lowest possible cost b. Distribution of materials on a scheduled basis c. Allocation of materials d. Control of inventories

c. Allocation of materials

Which of the following statements best defines increased productivity? a. An increase in productivity occurs when the number of units of service rendered in a given year increases over the number rendered in the previous year b. An increase in productivity occurs when an increase occurs in the volume of number of units of service rendered c. An increase in productivity occurs when reduction occurs in the ratio of hours worked to the number of units of service rendered d. An increase in productivity occurs when an increase occurs in the revenue from a given number of full-time equivalent employee

c. An increase in productivity occurs when reduction occurs in the ratio of hours worked to the number of units of service rendered

The interpretation of the healthcare organization's role with respect to healthcare values would require: a. Establishing corporate goals and major institutional policies b. Ensuring that the community served by the facility is well informed about the organization's goals and performances c. Developing a mission statement indicating the organization's fundamental purpose or reason for existence, in order to guide organizational behavior d. Creating a corporate vision of the organization's governing authority

c. Developing a mission statement indicating the organization's fundamental purpose or reason for existence, in order to guide organizational behavior

A hospice may be described as a/an: a. Intermediate-care facility b. Extended-care facility that specializes in the treatment of the chronically ill c. Facility where terminally ill patient s can receive special attention d. Interrelated group of healthcare services

c. Facility where terminally ill patient s can receive special attention

The establishment of an appropriate credentialing procedure for members of the medical/professional staff should ultimately be a decision of the: a. Entire medical/professional staff c. Credentialing committee c. Governing authority d. Medical/professional executive committee

c. Governing authority

Which of the following bodies has the final accountability for the formulation of policies and procedures concerning professional responsibilities within the healthcare organization? a. Chief executive and senior management b. Medical executive committee c. Governing authority d. Quality assurance committee

c. Governing authority

Before submission of the annual business plan to the governing authority, the plan should be developed by: a. Recommendations from the finance committee, on the basis of its estimate of income for the budget year. b. the heads of the profits center, considering each center's anticipated revenue and expenses, with the CEO collating c. Key executives, after receiving recommendations from heads of operating divisions d. The heads of the operating divisions, with the CEO collating

c. Key executives, after receiving recommendations from heads of operating divisions

Which of the following is the proper term for the healthcare facility development plan? a. Land use plan b. Functional Plan c. Master site plan d. Strategic plan

c. Master site plan

Following the completion of a strategic plan and of program development activities,, the healthcare facility may find it necessary to alter its physical capacity, to correct code violations, and to improve functional configuration. To achieve these objectives, the healthcare facility should: a. Identify accreditation requirements b. Identify growth plans for patient, ancillary, and support departments c. Prepare a master facility plan d. Prepare a physical facilities assessment

c. Prepare a master facility plan

Which of the following is the depreciation method that best recognizes changes in the general purchasing power of the dollar and/or changes in the replacement cost of specific assets? a. Declining-balance depreciation b. Straight-line depreciation c. Price-level depreciation d. Sum of years' digits depreciation

c. Price-level depreciation

The purpose of debt-service coverage is to: a. Determine the payout period b. Determine the rating of the bonds c. Protect the investor d. Establish the rate structure for the patient services

c. Protect the investor

A successful healthcare organization usually has a unique and well articulated company philosophy that represents a clear picture of the organization's objectives, norms and values. Employee motivation to support this philosophy would be greatest when the company: a. Maintains a program that provides employees with a wide variety of social, cultural, and recreational activities b. Emphasizes financial rewards, including strong employee benefits c. Provides a training program that is well communicated, understood by employees, and enforced by executive managements d. Continues a major effort to articulate employee rights in such areas as grievances, affirmative action, and human rights issues

c. Provides a training program that is well communicated, understood by employees, and enforced by executive managements

In a sound human resources program, the primary purpose of the job classification system is to? a. Develop position descriptions for employees b. Establish a total wage and salary administration program c. Rank jobs by kind and level of work performed d. Define an effective organizational structure

c. Rank jobs by kind and level of work performed

The method referred to as value analysis is used in inventory control activities to: a. Make adequate substitutions for requisitioned items. b. Reduce the quantity of items issued to various departments c. Reduce cost without impairing functional efficiency d. Relate quantity and quality of items

c. Reduce cost without impairing functional efficiency

When a computer system is being used for business records, confidentiality is most effectively maintained by: a. Periodic reviews by the internal auditor b. Monitoring the activities of those employees who operate computer services c. Restricting access to the information system d. Restricting access to the computer area

c. Restricting access to the information system

As an internal control method, a budget is most commonly used to: a. Allow managers to control expenditures in the current year and to justify increases in future budgets b. Provide feedback concerning operational expenditures in the current year to the governing authority and to aloe management to satisfy the governing authority's requirements of accountability c. Serve as a numerical specification of plans and to function as a standard of control against which results can be compared. d. Allow management to monitor operational expenditures and to justify future requests for decreased or increased expenditures to rate-setting agencies

c. Serve as a numerical specification of plans and to function as a standard of control against which results can be compared.

Once a market research problem has been identified, the researcher's next step is to: a. Conduct a literate search b. Conduct focus groups and collect data c. Specify information needs d. Design a data-collection instrument

c. Specify information needs

Decisions concerning the development of alternative modes of service delivery are generally made upon recommendations of: a. The market research director to the CEO b. Community leaders to the CEO c. The CEO to the governing authority d. The medical/professional staff to the governing authority

c. The CEO to the governing authority

Most products and services enter a period of decline. Unless compelling reasons prevail, continuing a declining product or service is costly because: a. Increased turnover of personnel will occur b. Continuation will set an undesirable precedent concerned with maintaining the status quo c. The program will consume a disproportionate amount of management time and delay the search for replacement. d. The organizations will be perceived as being insensitive to the marketplace

c. The program will consume a disproportionate amount of management time and delay the search for replacement.

It is important for the CEO of a healthcare organization to represent the organization at state and regional associations and to other organizations in the community because: a. The organization's spokesman is the person who is most knowledgeable about the organization b. The CEO can use the opportunity to explore external threats to the organization c. These activities develop exchange relationships and are therefore crucial to the organization d. Consumer surveys indicate that, within the community, the CEO is the most visible spokesman for the organization

c. These activities develop exchange relationships and are therefore crucial to the organization

Quality of patient care can best be measures by: a. Carefully constructed written reports comparing different time periods. b. A review of incident reports c. Reviewing the minutes of the medical/professional executive committee d. A combination of statistical reports and direct supervision of patient care

d. A combination of statistical reports and direct supervision of patient care

When an acute healthcare facility is part of a parent-subsidiary type corporation, that facility typically is: a. The parent corporation b. A holding company c. A member of the association d. A subsidiary

d. A subsidiary

What population factor is currently having the greatest impact on healthcare organization? a. Ethnic composition b. Economic status c. Geographic distribution d. Age cohort

d. Age cohort

One of the techniques most frequently used in industry to aid management in interpreting a firm's balance sheet is computation of the "acid-test ratio", which is the ratio of: a. Current assets to current liabilities b. total assets to total liabilities c. cash to short term debt d. Cash marketable securities, and accounts receivables to current liabilities

d. Cash marketable securities, and accounts receivables to current liabilities

Which one of the following is the most important element of communication in contract management? a. Negotiating b. Controlling c. Directing d. Feedback

d. Feedback

Which of the following rules applies to the purchase of major diagnostic or treatment equipment? a. Physician input s required by the accrediting body b. Competitive bidding is required by government programs c. The decision should be based on equipment depreciation schedules d. Funds should be allocated annually in accordance with the organization's capital schedule

d. Funds should be allocated annually in accordance with the organization's capital schedule

Which one of the following statements is in accordance with the principle of delegation? a. The executive who subscribes to the principle of delegation knows what he/she wants to accomplish and exercises control over the work schedule of subordinates b. A executive explains how he/she wants things done and points out how the subordinate's contribution fits into the overall plan c. A successful executive gives instructions, telling subordinates exactly how and in what sequence things should be done d. In applying the principle of delegation, an executive makes relatively few decisions personally and frames orders in a broad general terms.

d. In applying the principle of delegation, an executive makes relatively few decisions personally and frames orders in a broad general terms.

Effective facilities maintenance depends on: a. Life-cycle planning of equipment b. An up-to-date inventory of equipment parts for replacement c. A periodic update of a prevent maintenance schedule d. Maintaining facilities on a preventive schedule

d. Maintaining facilities on a preventive schedule

The volume that would be realized if each prospective consumer were to purchase a specified amount of a particular service during a defined future time frame is called: a. A sales forecast b. A market forecast c. Operational capacity d. Market potential

d. Market potential

Formation of a sound inventory control system depends upon: a. Aging by item according to first-in/first-out protocols b. Meeting demand and maximizing turnover c. Maintaining sound fiscal controls based on utilization d. Meeting demand and minimizing inventory cost

d. Meeting demand and minimizing inventory cost

The thrust of antitrust legislation as applied to the healthcare field is to: a. Contain cost b. Contain rising cost of independent single unit hospital c. Monitor the scope of health services provided in a given area d. Protect the public's economic interest

d. Protect the public's economic interest

When data are scarce, the best method for forecasting is to use: a. Computer-based simulation methods b. Time series analysis c. Econometric forecasting d. Qualitative technique

d. Qualitative technique

Which one of the following conditions must be met for human subjects to be used in a medical research program? a. No suitable animal model exists for use instead of people b. The research program has been approved by the medical staff c. The research program has been approved by the governing authority d. Risks should be clearly explained in understandable language to each individual subject

d. Risks should be clearly explained in understandable language to each individual subject

The sole purpose of the medical/professional staff organization is to: a. Meet accreditation standards b. Review the standards of patient care c. Review the credentials of physicians applying for membership d. Safeguard patient safety

d. Safeguard patient safety

In the field of healthcare services, which of the following trends has significantly increased the need to develop more comprehensive and more systemic credentialing processes in healthcare facilities: a. The increased number of independent healthcare practitioners b. The expansion of governmental regulations covering the operation of the healthcare facilities c. The growth of ambulatory healthcare services d. The growth of liability of healthcare facilities for malpractice by health practitioners

d. The growth of liability of healthcare facilities for malpractice by health practitioners

Compatibility between data-processing units is necessary EXCEPT when: a. The costs of individual systems are less than the cost of an integrated system b. Technological advances are so rapid that obsolescence occurs within a few years c. Constraints on available space restricts the size of the units that can be installed d. The information involved is used for discrete freestanding activity.

d. The information involved is used for discrete freestanding activity.

The purchasing/receiving process is often the weak link in a healthcare organization's internal control of its inventory. Which one of the following is standard procedure in preventing problems in this area? a. The organization should utilize a decentralized process for the control receiving b. Consolidation of receiving and storeroom functions will decrease the possibility of collusion c. Review of the process by internal auditor should be done on a routine basis d. The principle of dual receiving accountability as a prerequisite for invoice payment should be enforced

d. The principle of dual receiving accountability as a prerequisite for invoice payment should be enforced

To obtain the most objective evaluation of state-of-the -art computer technology, the healthcare executive should ultimately: a. Survey local computer users b. Undertake a literature search c. Rely upon the in-house management information systems committee d. Utilize outside experts

d. Utilize outside experts