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ACHE BOG Practice Exam Test
(Latest 2026 – 2027)
All of the following are commonly recognized to be a right of each patient, except: a. The right to considerate and respectful care b. The right to receive a reasonable response to his/her requests c. The right to communicate with a caregiver in the language of the patients choosing d. For dying patients, the right to receive pain management. C. Insurance companies and other payers have introduced pre - admission certification for elective hospital stays in order to: a. Cause physicians to reconsider need for service b. Facilitate communication between hospital and the attending physician c. Establish clinical necessity prior to service d. Encourage the patient to obtain a second opinion C. Brainpower Read More 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 d. Have been shown to improve the quality of care C. CEO compensation should be based on: a. The compensation arrangements with the prior CEO
b. Executive compensation in local corporations with similar gross revenues c. Present 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 D. 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 performance of departmental activities A. 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 A. 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 d. Establishes guidelines and makes final choices among competing opportunities D. The individual or group responsible for establishing policy, maintaining quality of care and providing for institutional management planning is the:
b. The privileges of the medical staff c. The names of the stockholders in the organization d. Composition of the governing board, committees and officers D. The interpretation of the healthcare organization's role with respect to healthcare values would 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 performance. 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. The ethical precepts (organizational philosophy) that guide an organization's activities are found in a variety of sources that are: a. Reflected in everyday sessions b. The sole province of senior management c. Part of the governing body's formal actions d. Written and unwritten D. The development of PPOs was originally intended to: a. Guarantee that hospitals maintain their occupancies b. Promote networks that would evolve into multi - hospital systems c. Offer an alternative to the health maintenance organization d. Force high proceed hospitals out of the local markets via discounts C. 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. Orienting and training the CEO. d. Organizing the boards work. D. The role of the healthcare organization ethics committees is likely to be greatly expanded in the future, primarily due to the: a. Increased involvement of management in clinical decision making b. Necessity for management to respond to licensure and accreditation requirements c. Ability of current technology to extend life, without reference to the quality of life that is sustained d. Involvement of patients and their families in the clinical decision making process C. Which of the following would not be included among the factors used to measure organizational effectiveness? a. Total revenues b. Operating margin c. Consumer satisfaction d. Return on investment A. 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 reflect their true attitudes toward the organization c. An organization's image is largely the result of public relations, advertising, selling and communication efforts d. Responsibility for the creation of the organization's image does not lie merely with the marketer C.
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 D. Comparative methods of performance appraisal that compare one manager to another to determine performance ratings: a. Are solely based on desired organizational outcomes b. Are time consuming and useful only for relatively small groups of employees c. Are objective measures of performance d. Require the use of only one rater to achieve consistency of measurement B. Vertical job enlargement: a. Gives individual workers responsibility for control of decision making over task - related decisions b. Has been universally accepted by all employees c. Must involve supervisor and subordinate in a participative process d. Expands an individual's job by assigning additional steps in the production process C. 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 generally Accepted Accounting Principles d. Correct discount rate for valuing the total cash flows received by the equity suppliers. B. Which of the following statements most accurately describes the HEDIS, Health Plan Employer Data 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 programs c. HEDIS was developed primarily to meet the needs of patients and their families d. Financial performance has no bearing on HEDIS indicators B. 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. An 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 broad general terms D. 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 B. 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. Chief executive officer B. Hampton outpatient Clinic budgeted revenue from flu vaccinations at $20 per shot. Fixed costs total
d. Appealing to super ordinate goals A. Memorial hospital offers a screening test as a public service for $0.50 per test. Variable costs per unit are $0.32. Fixed costs are $43,200 per month for the department performing the test. It is the only test done by this special department. The break ev en point in tests is: a. 240,000 tests b. 172,000 tests c. 135,000 tests d. 86,400 tests A. Which of the following can be used to establish marketing budgets: a. The affordable method b. Objective and task method c. Competitive - based method d. All of the above D. 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 preventive maintenance schedule d. Maintaining facilities on a preventive schedule D. 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.
Criteria for evaluation of the CEO should be based on: a. The governing board president's recommendations. b. Meeting the board approved contribution margin. c. Meeting the financial goals of the organization. d. The opinion of the governing board. D. In the development of a business plan, management depends primarily on: a. Forecasting techniques b. Economic conditions of the service area c. Competitive external pressures d. Feelings about the future A. Which of the following is not a cost allocation method: a. Double apportionment b. Algebraic c. Step - down d. Accrual D. 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 audit of job descriptions d. Frequent on - site visits to work locations A. The primary function of an extended - care unit is to provide:
For information on net cash flows from providing health services for a specific time frame, the decision maker should use the: a. Statement of cash flows b. Income statement c. Balance sheet d. Statement of retained earnings A. All of the following are methods used to forecast future demand except: a. Target buyer intention surveys b. Performance of an environmental assessment c. Estimation of a competitors current customer base d. Estimate of future demand by "middlemen" C. Successful approaches to strategic planning include: a. A well written mission statement, long rang plan and fiscal plan plus the history and discussion surrounding them. b. Avoidance of high risk decisions c. Not paying attention to the competitors activity d. Using rules and past experiences as a guide to future action A. 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 receivable to current liabilities D.
The primary challenge facing a prospector is: a. Protecting and increasing current service (product) or market share through technical efficiency, cost improvements, or differential strategies b. Managing diversification successfully, to guard against expanding too rapidly or into areas where 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 a strategic plan long enough to accumulate experience and to develop consistent leadership, avoiding random diversification efforts B. 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. 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. The thrust of antitrust legislation as applied to the healthcare field is to: a. Contain costs
c. Determination of competitors strengths and weaknesses d. Evaluation of clinical skills missing from the medical staff A. 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 the 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. Decentralization of management refers to the: a. Establishment of multiple sites, which allows full autonomy b. Delegation of selected decision making authority c. Process of departmentalization according to function or purpose d. Cost accounting of indirect expenses to profit centers B. 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. Competitive advantages in a healthcare organization is determined fundamentally by the: a. Organization that offers the lowest unit price b. Perceived quality of the medical staff c. Perceived effectiveness of the public relations program
d. Value that an organization is able to create for consumers D. In the field of healthcare services, which of the following trends has significantly increased the need to develop more comprehensive and more systematic credentialing processes in healthcare facilities: a. The increased number of independent healthcare practitioners b. The expansion of governmental regulations covering the operation of healthcare facilities c. The growth of ambulatory healthcare services d. The growth of liability of healthcare facilities for malpractice by health practitioners D. 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 the customer's needs d. Emphasize specialization. C. Once a marketing research problem has been identified, the researcher's next step is to: a. Conduct a literature search b. Conduct focus groups and collect data c. Specify information needs d. Design a data - collection instrument. C. A legitimate reason to release information from a patients medical record is: a. When subpoenaed by a court order b. When requested by spouse or next of kin c. When the patient becomes incompetent d. When reporting statistics for a research project A.
c. Provides a training program that is well communicated, understood by employees, and enforced by executive management d. Continues a major effort to articulate employee rights in such areas as grievances, affirmative action, and human rights issues C. 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 b. Credentials committee c. Governing authority d. Medical/professional executive committee C. The development of a freestanding ambulatory care center is an example of: a. Product life cycle b. Vertical integration c. Matrix organization d. Differential cost pricing B. A positive net present value indicates that the investment has a rate or return: a. Higher than the discount rate used in the calculation b. Lower than the discount rate used in the calculation c. Equal to the discount rate used in the calculation d. Equal to the accounting profit averaged over the life of the investment A. 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. 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. 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. Behaviorally anchored rating B. Current JCAHO guidelines regarding measurement (the collection of data) include all of the following except: a. The data collection process should be consistent with those of the JCAHO's 10 - step method for quality assessment b. The data should identify opportunities for possible improvements of existing processes c. The organization must collect data about the needs of patients and others d. Patient care processes that affect a large percentage of patients must be assessed on a continuing basis A. In those cases where professional relationships are defined by a contract, it is important that the contract: a. Be approved by the organizations attorney
