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ACHE BOG Exam Sample Test -100 Questions & Answers 2024 CEO Compensation should be based on: a. the compensation arrangement with prior CEO b. executive compensation in local corporations with similar gross revenues c. present day salary plus cost-of living adjustment d. what the institution would have to pay for a similarly prepared person if that person were employed elsewhere - Correct Answers ✅d. 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: a. approve the mission, vision, and long-range plan b. focus on strategic planning c. prepare the operating plan d. review the performance of departmental managers - Correct Answers ✅a. approve the mission, vision, and long-range plan The key to enhancing board effectiveness is: a. getting the right people to serve on the board b. supporting and selecting the right CEO c. orientating and training the CEO d. organizing the board's work - Correct Answers ✅d. organizing the board's work ACHE BOG Exam Sample Test -100 Questions & Answers 2024 Members of the medical staff are eligible for full membership on the governing board in the same manner as other individuals: a. when not legally prohibited b. when they do not actively practice in the organization c. when they are not full-time employees d. if they are not foreign nationals - Correct Answers ✅a. when not legally prohibited The Chief Executive Officer: a. is a member of the board b. represents the board internally and externally c. is not a member of the board d. has a contract with the board - Correct Answers ✅b. represents the board internally and externally Regarding the budget, the board: a. does not use the budget exercise as a way to improve quality and productivity b. gets involved in preparing budgets for all operational units c. decides which personnel are needed in top management ACHE BOG Exam Sample Test -100 Questions & Answers 2024 Successful approaches to strategic planning include: a. a well-written mission statement, long-range plane, and fiscal plan plus the history and discussion surrounding them b. avoidance of high risk decision c. not paying attention to competitor's activity d. using rules and past experiences as a guide to future action - Correct Answers ✅a. 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: a. protecting and increasing current services (product) or market share through technical efficiency, cost improvements, or differentiation strategies b. managing diversification successfully, to guard against expanding too rapidly or into areas they have little knowledge c. managing simultaneously the difficult task of pursuing new markets and services while avoiding erosion of current services in existing markets d. creating stability by sticking with strategic plan long enough to accumulate experience and to develop consistent leadership avoiding random diversification efforts. - Correct Answers ✅b. managing diversification successfully, to guard against expanding too rapidly or into areas they have little knowledge ACHE BOG Exam Sample Test -100 Questions & Answers 2024 In the introductory stage of a product life cycle: a. the introductory stage can be short b. the introductory stage can be long c. sales and revenue growth is slow c. all of the above - Correct Answers ✅c. all of the above The primary task of marketing is to: a. bring about voluntary and involuntary exchanges of value b. attract new advertiser c. bring about exchanges of values d. advertise new and existing services - Correct Answers ✅c. bring about exchanges of values It would be incorrect to say that: a. an organization's image is a function of all that the organization has done as well as what it has attempted to communicate b. people's images of an organization always reflects their true attitudes toward the organization c. an organization's image is largely the result of public relations, advertising, selling, and communication efforts. ACHE BOG Exam Sample Test -100 Questions & Answers 2024 d. responsibility for the creation of the organization's image does not lie merely with the marketer - Correct Answers ✅c. an organization's image is largely the result of public relations, advertising, selling, and communication efforts. It is important to understand the consumer adoption process because: a. the organization may be able to convince the consumer to pass over awareness, interest, the evaluation stages, moving directly to trail. b. it is important to have the communications plan for new products/services address the late majority and laggards as well as the innovators c. word of mouth and personal influence play little to no role in the consumer adoption process d. people differ significantly in their likelihood to try a new product/service, a factor that should affect an organization's communications plans for its new product /service - Correct Answers ✅d. people differ significantly in their likelihood to try a new product/service, a factor that should affect an organization's communications plans for its new product /service All of the following can be used to establish marketing budgets? a. The affordable method b. Objective and task method c. Competitive-based method ACHE BOG Exam Sample Test -100 Questions & Answers 2024 valid for a long period of time. - Correct Answers ✅c. the cornerstone of human resources management activities Comparative methods of performance appraisal that compares one manager to another to determine performance ratings: a. are solely based on desired organizational outcomes b. are times consuming and useful only for relatively small groups of employees c. are objective measures of performance d. requires the use of only one rater to achieve consistency of measurement - Correct Answers ✅b. are times consuming and useful only for relatively small groups of employees A system for providing reward for improvement in productivity should: a. be group based to reinforce teamwork and cooperation b. focus on nonfinancial rewards only c. be integrated into the organization's employee appraisal system d. focus on both nonfinancial and financial rewards. - Correct Answers ✅d. focus on both nonfinancial and financial rewards Vertical job enlargement: a. gives individual workers responsibility for control of decision making over task-related decisions ACHE BOG Exam Sample Test -100 Questions & Answers 2024 b. has been universally accepted by all employees c. must involve supervisor and subordinate in participative process d. expands an individual's job by assigning additional step in the production process - Correct Answers ✅c. must involve supervisor and subordinate in participative process A stop-gap measure that a health service might use to manage intergroup conflict, which allows people to cool down and regain perspective, is: a. smoothing b. bargaining c. integrative problem solving d. appealing to superordinate goals - Correct Answers ✅a. smoothing Work groups informally govern the amount and quality of work of individuals within the group through: a. performance norms b. behavior norms c. standard operation procedures d. job description - Correct Answers ✅a. performance norms ACHE BOG Exam Sample Test -100 Questions & Answers 2024 As a minimum, an organization demonstrates "good faith" in collective bargaining with a union by: a. appointing a representative who may not have the power to negotiate agreements to meet with the union b. rejection union proposals without having to offer counterproposals. c. bargaining individually with employees or offering them individual contracts even though bargaining has been requested by the majority representative d. receiving union proposals and meeting with the union from time to time to discuss the proposals - Correct Answers ✅d. 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: a. "groupthink" when individuals strive toward harmony and unanimity at the expense of good decision making. b. "free-riding" when individuals can benefit from the work of the group without making a suitable contribution c. "risky shift" when individuals ignore potentially dangerous outcomes and choose high-risk alternatives d. "behavioral transference" when values and norms of other work groups are discounted - Correct Answers ✅b. "free-riding" when individuals can benefit from the work of the group without making a suitable contribution ACHE BOG Exam Sample Test -100 Questions & Answers 2024 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: a. 240,000 tests b. 172,800 tests c. 135, 000 tests d. 86,400 tests - Correct Answers ✅a. 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000) The most important factor in the success of the organizational internal control system is: a. selection of the internal auditor b. selection of the CEO c. selection of certified public accountants for internal auditor functions d. selection of the audit committee of the board - Correct Answers ✅a. 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 ACHE BOG Exam Sample Test -100 Questions & Answers 2024 Clinic wants to increase operating income by $2,000, what should Hampton charge for additional shots. a. The variable cost plus the incremental profit margin per shot. b. The average cost per sot plus the per-unit profit c. The fixed cost per shot plus the variable cost. d. The variable costs plus the per-unit fixed cost. - Correct Answers ✅a. The variable cost plus the incremental profit margin per shot. Financial risk is an element in capital investment decisions and is determined by: a. the riskiness of the firm to the equity holders, assuming no debt financing is used. b. The additional risk placed on the firm when debt financing is used c. the risk inherent in the firm's beta coefficient as determined by industry levels. d. the total riskiness of the firm's return on assets (ROA) and its market portfolio. - Correct Answers ✅b. 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: a. amount of resources required to generate a dollar of revenue b. profitability per dollar of revenue ACHE BOG Exam Sample Test -100 Questions & Answers 2024 c. effectiveness of capital structure decisions d. effective use of current assets - Correct Answers ✅a. amount of resources required to generate a dollar of revenue A weighted average cost of capital is the: a. accounting cost to the organization of producing all required returns to capital b. economic cost to the organization of producing all required returns to capital c. weighted average required rate of return adjusted downward in accordance with GAAP d. correct discount rate valuing total cash flows received by equity suppliers - Correct Answers ✅b. economic cost to the organization of producing all required returns to capital In general, the net present value calculation assume: a. the discount rate is constant over the life of the decision. b. the organization is a for profit entity c. future cash flows are known with certainty. d. borrowing and lending rates are equal with each period - Correct Answers ✅d. borrowing and lending rates are equal with each period ACHE BOG Exam Sample Test -100 Questions & Answers 2024 b. line of credit arrangement c. minimum balance agreement d. shorten write-off date - Correct Answers ✅a. "lock-box" agreement Which of the following best describes a plan for the development of a facility' physical plant? a. a set of completed plans and specifications for all of the changes to be made to the physical plant b. a projection of the cash flow for the plant -related projects c. a listing of the changes, sequence, and cost to meet projected capacity requirements a financial feasibility study of funding alternatives for plant development - Correct Answers ✅c. 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: a. to speak with all suppliers and ask for presentations by suppliers b. that the purchase is part of the facility's capital plan c. to take the lowest bid d. to take the recommendation of the medical director - Correct Answers ✅b. that the purchase is part of the facility's capital plan ACHE BOG Exam Sample Test -100 Questions & Answers 2024 The selection of major item of equipment should be: a. guided by a selection group composed of the users and maintainers of that equipment b. made by the medical director of the department c. the sole choice of the administrator d. the decision of the board of directors - Correct Answers ✅a. guided by a selection group composed of the users and maintainers of that equipment An effective plan for equipment maintenance is: a. ensured by having all replacement parts in stock b. determine when the equipment is installed and need not be changed c. based on manufacture's recommendation and facility experience with the equipment d. ensured by having a computer based preventive maintenance system - Correct Answers ✅c. based on manufacture's recommendation and facility experience with the equipment To access the effectiveness of its maintenance program, a health facility should: a. review the cost of the maintenance activities b. send satisfaction questionnaires to user department ACHE BOG Exam Sample Test -100 Questions & Answers 2024 c. monitor an established set of performance measures on a periodic basis d. have an outside consultant review the program - Correct Answers ✅c. monitor an established set of performance measures on a periodic basis The organization's strategic plan, accreditation and licensing requirements , and the need to improve functional efficiency may indicated the need for a building program. To develop a program that best meets these needs, the healthcare organization should: a. interview the medical staff for suggestions b. interview the department managers regarding planned growth c. interview board members d. prepare a master facility plan - Correct Answers ✅d. prepare a master facility plan The master facility plan for development of a healthcare organization's physical plant should be based on: a. the suggestions of the medical staff for clinical services expansion b. the facility's strategic plan and volume projections c. recommendations from licensing and accrediting bodies d. the architect's drawings - Correct Answers ✅b. the facility's strategic plan and volume projections ACHE BOG Exam Sample Test -100 Questions & Answers 2024 b. mix of services provided c. utilization review and risk management d. clinical engineering programs - Correct Answers ✅a. information systems and telecommunications An important management principle that should guide the planning design, and implementation of information systems for healthcare organization is: a. always buy the newest system available to avoid technical obsolescence b. leave all decisions about information technology to technical specialist c. employ consultants to set priorities for system development d. treat information as an essential institutional resource. - Correct Answers ✅d. treat information as an essential institutional resource Membership of the healthcare information systems steering committee should comprise: a. the CEO, CIO, selected major user departments and the chair of the governing board b. representatives of administration, physicians leadership, information systems management, and major user departments c. the CIO and senior system analysts ACHE BOG Exam Sample Test -100 Questions & Answers 2024 d. the CIO and outside technical consultants - Correct Answers ✅b. 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: a. standard reports generated b. user requirements c. the cost of the systems d. vendor service capabilities - Correct Answers ✅b. user requirements Of the following, the most important task in evaluating vendor information system products is: a. reviewing technical journals b. attending vendor product demonstrations c. talking directly with others who have used the products you are considering d. attending computer trade shows - Correct Answers ✅c. 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: ACHE BOG Exam Sample Test -100 Questions & Answers 2024 a. the desire and needs of managed care and other payors b. the business, clinical and operating requirements of the emerging organization c. the desires of the largest organizations in the network d. plans to use common computer hardware throughout the network - Correct Answers ✅b. the business, clinical and operating requirements of the emerging organization Information systems needed for financial planning and control in healthcare organization include: a. patient registration, admissions, discharges, and transfers b. outpatient and emergency room scheduling c. budgeting, cost accounting, case-mix analysis, and financial modeling d. order entry and result reporting - Correct Answers ✅c. budgeting, cost accounting, case-mix analysis, and financial modeling Outcomes assessments required by managed care will require more advanced clinical information systems, such as: a. computerized protocols to aid in diagnosis and treatment planning b. computerized patient registration c. entry laboratory and radiology orders from computer terminals d. processing of medical records abstracts - Correct Answers ✅a. computerized protocols to aid in diagnosis and treatment planning ACHE BOG Exam Sample Test -100 Questions & Answers 2024 Current JCAHO guidelines regarding measurements (to collection of data) include all of the following EXCEPT: a. a. the data collection processes should be consistent with those of the JCAHO's "10 step method" for quality assessment b. the data should identify opportunities for possible improvement of existing processes c. the organization must collect data about the appropriateness of admissions and hospital stays d. the organization must collect data on patient care processes that are high-risk, high volume, and problem prone - Correct Answers ✅a. a. 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 a. have been shown to decrease healthcare costs b. rarely need to be revised c. provide starting points for managing individual patients have been shown to improve the quality of care - Correct Answers ✅b. rarely need to be revised ACHE BOG Exam Sample Test -100 Questions & Answers 2024 Which of the following statements about Malcolm Baldrige National Quality Award is true? a. Service organizations have won the award as often as manufacturing organizations b. Healthcare organizations were able to receive the award beginning in 1996 c. Each year, there are winners in the manufacturing, service, and small business categories d. Regulatory compliance constitutes an essential prerequisite to winning the award - Correct Answers ✅b. 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? a. HEDIS indicators can easily be adopted for use by acute care hospitals b. HEDIS quality indicators evaluate preventive services, prenatal care, acute and chronic illness, and mental health and substance abuse program c. HEDIS was developed primarily to meet the needs of patients and their families d. financial performance has no bearing on HEDIS indicators - Correct Answers ✅b. HEDIS quality indicators evaluate preventive services, prenatal care, acute and chronic illness, and mental health and substance abuse program ACHE BOG Exam Sample Test -100 Questions & Answers 2024 The governing authority assures itself about the quality of care by: a. holding the CEO of the healthcare facility accountable b. making the president of the medical/professional staff an ex officio member of the governing authority c. approving the process and then following up regularly and continuously to see that it is being used d. reviewing tabulated results of incidence reports - Correct Answers ✅c. 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: a. subpoenaed by a court order b. requested by the spouse or next of kin c. the patient becomes incompetent d. reporting statistics for a research project - Correct Answers ✅b. requested by the spouse or next of kin In the past, hospitals have been less effective in lobbying than physicians because: a. legislators like physicians more b. physician have better lobbyists ACHE BOG Exam Sample Test -100 Questions & Answers 2024 b. They must have exercise the same high level of fiduciary duty as is applied to the trustees of a trust c. They must avoid gross negligence and willful misconduct d. They are immune from personal liability - Correct Answers ✅a. They must act in good faith, with reasonable care, and with the best interests of the corporation in mind. Which of the following is the clear trend regarding a hospital's liability for the action s of members of its medical staff? a. The hospital may be held liable for a physician's negligence even though the physician is an "independent contractor" b. Hospitals are not liable for such actions because they are simply physical sites where patients receive treatment from privately retained physicians c. Courts are becoming more reluctant to impose liability on hospitals for negligence of physicians who use their facilities d. The hospital is liable only if the physician is an employee - Correct Answers ✅a. The hospital may be held liable for a physician's negligence even though the physician is an "independent contractor" A joint venture laboratory owned by a hospital and physicians on its medical staff would probably be a violation of fraud and abuse law if it were to: a. market its services to both investors and non-investors ACHE BOG Exam Sample Test -100 Questions & Answers 2024 b. offer ownership shares at the same price toe referrers and non- referrers c. required investors to refer business to it d. base its profit distribution on the amount of capital contribution, not on referrals - Correct Answers ✅c. required investors to refer business to it The principle reason for a small and mid-size employers to join buyers cooperatives is to enable them to: a. drop coverage from existing insurers b. gain leverage to obtain similar to large employers c. negotiate directly with physicians and hospitals d. lobby government agencies for more protection from insurers - Correct Answers ✅b. gain leverage to obtain similar to large employers The development of preferred provider organization was originally intended to: a. guarantee that hospitals maintain their occupancies b. promote networks that would evolve into multihospital systems c. offer an alternative to the health maintenance organization ACHE BOG Exam Sample Test -100 Questions & Answers 2024 d. force high-priced hospitals out of the local market via discounts - Correct Answers ✅c. offer an alternative to the health maintenance organization An important reason for a hospital and its medical staff to explore the development of physician-hospital organizations is to: a. permit contracting with plans that want to buy both hospital and physician services b. being development of a hospital based health maintenance organization c. eliminate poor performing physicians from the organization d. provide a way to put all physicians on salary - Correct Answers ✅a. permit contracting with plans that want to buy both hospital and physician services Insurance companies and other payors have introduced preadmission certification for elective hospital stays in order to: a. cause a physician to reconsider need for service b. facilitate communication between hospitals and the attending physician c. establish clinical necessity prior to service d. encourage the patient to obtain a second opinion - Correct Answers ✅c. establish clinical necessity prior to service ACHE BOG Exam Sample Test -100 Questions & Answers 2024 c. need for a consultant d. situation that is impossible - Correct Answers ✅a. conflict of interest The best way to describe health fairs, screening programs, and smoking cessation classes provided by healthcare organizations is that they are: a. attempt to create demand b. necessary for most third party reimbursement c. desirable, but superfluous activities d. community education programs - Correct Answers ✅d. community education programs The ethical precepts (organizational philosophy) that guide an organization's activities are found in a variety of sources that are: a. reflected in everyone's actions b. the sole province of senior management. c. part of the governing body's formal actions d. written and unwritten - Correct Answers ✅d. written and unwritten The most common and useful ways to overcome resistance to change in organizations are: a. education and communication ACHE BOG Exam Sample Test -100 Questions & Answers 2024 b. manipulation and co-optation c. committees and task forces d. inspirational leadership and managerial skill - Correct Answers ✅a. 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: a. provide a local area network to leaders of each group using personal computers b. have overlapping membership on committee that are part of each group c. have quarterly meeting where issues of concern to the groups are discussed d. provide copies of memoranda and policy statements to leaders of each group - Correct Answers ✅b. 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: a. are encouraged by significant peer pressure b. must meet requirements of their certifying group c. are often interested in opportunities to transfer ACHE BOG Exam Sample Test -100 Questions & Answers 2024 d. must meet malpractice law continuing education standards - Correct Answers ✅b. must meet requirements of their certifying group