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LATEST UPDATED PRACTICE EXAM – FACHE (
QUESTIONS AND ANSWERS) GRADED A + 2024.
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. - Solution 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. - Solution 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. - Solution 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 - Solution 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 - Solution 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. - Solution 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. - Solution c. A building with a useful life of 20 years. What is the correct order of stages for accomplishing organization change? a. Identifying, planning, implementation, evaluation. b. Planning, identifying, evaluation, implementation. c. Evaluation, planning, implementation, identifying. d. Planning, evaluation, identifying, implementation. - Solution a. Identifying, planning, implementation, evaluation. Boards make better strategic decisions if they use information that is: a. Readily available on special board website. b. Generated from computer studies of departmental activity reports.
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. - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution a. Imposition of formal authority to resolve or suppress conflict. Multi-rater assessment (360 degrees feedback) of managers in healthcare organizations is best used:
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. - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution 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
- Solution 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. - Solution 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.
A typical use of the Internet by healthcare organizations is to: a. Deliver educational programs to employees. b. Provide the medical staff with electronic access to patient records. c. Advertise services available to the community. d. Communicate financial information to business units of the organization.
- Solution c. Advertise services available to the community. The best way to facilitate information system integration within a healthcare organization is to: 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. - Solution 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. - Solution 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 - Solution 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 - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution 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. - Solution a. Issue security codes and limit access to the system.
Law and tradition have established basic criteria for healthcare governing boards. One criteria is that: a. All members agree to receive care at the governed organization. b. Board members provide a specified amount of financial support. c. The actions of the board are reasonable and prudent. d. The board must meet a minimum of two times each year. - Solution c. The actions of the board are reasonable and prudent. Continuous quality improvement assumes that: a. Achievement will be rewarded. b. There is direction from top management. c. There is no upper limit to excellence. d. Interconnected work teams are in place. - Solution c. There is no upper limit to excellence. Which of the following best describes the responsibility of a hospital with an emergency department (ED) when a person comes to the ED for Examination or treatment? a. The hospital must admit the patient for observation and treatment if an emergency condition exists. b. The hospital must provide an appropriate medical screening to determine whether an emergency condition exists and, if so, stabilize the condition. c. The hospital may inquire as to the individual's method of payment or insurance status prior to rendering services. d. If the individual is uninsured, the hospital must transfer the patient to the nearest public hospital designated for the care and treatment of medically indigent persons. - Solution b. The hospital must provide an appropriate medical screening to determine whether an emergency condition exists and, if so, stabilize the condition. What was the first major law to have a significant impact on individual privacy in the workplace? a. Civil Rights Act b. Fair Credit Reporting Act c. Polygraph Protection Act d. Privacy Act - Solution a. Civil Rights Act How does physician self-referral or Stark laws apply to Medicare payments?
a. The law applies to private party insurance and does not apply to Medicare payments. b. The law establishes an additional payment to the normal Medicare payment fees due to the added complexity of referrals. c. The law allows a claim to be filed with Medicare for a service provided by a physician who has a financial interest in the DHS. d. The law prohibits a provider from presenting a claim to Medicare or to any person or other entity for a prohibited DHS referral. - Solution d. The law prohibits a provider from presenting a claim to Medicare or to any person or other entity for a prohibited DHS referral. Which of the following is not an advantage of an effective Corporate Compliance Program for a healthcare organization? a. Initiating immediate and appropriate corrective actions. b. Costs of implementation and operations. c. Developing processes to allow employees to report potential problems d. Identifying and preventing criminal and unethical conduct. - Solution b. Costs of implementation and operations. A privilege of confidentiality exists in a physician-patient relationship when the physician-acquired information is: a. Documented in the patient's medical records. b. Substantiated by the patient's nurse. c. Related to the care and treatment of the patient. d. Confirmed and documented by the patient. - Solution c. Related to the care and treatment of the patient. Participating providers in the federal Medicare program must: a. Be accredited by the Joint Commission. b. Serve Medicaid beneficiaries. c. Meet the Conditions of Participation. d. Be in compliance with state Certificate of Need laws. - Solution c. Meet the Conditions of Participation. Which physician organization is responsible for accrediting residency training programs? a. ACGME b. AAMC c. CAT d. BPQA - Solution a. ACGME
explicit and specific procedures, arranging offices in a hierarchal fashion, and selecting candidates on the basis of their technical competency? a. Bureaucratic b. Contingency c. Institutional d. Technological - Solution a. Bureaucratic In planning for future community health services, it is important to understand population health needs. Which ethnic category tends to proportionally use physician services the most? a. African-American b. Asian c. Latino d. White - Solution d. White Which of the following limitations would cause a hospital OB unit to see no change in volume over a four year period? a. Organizational b. Market c. Financial d. Clinical - Solution b. Market According to CMS Conditions of Participation, under what circumstances, if any, is it permissible to deny a patient access to his or her medical record? a. The information requested consists of psychotherapy notes. b. The request comes from the patient's personal representative instead of directly from the patient (if allowed under state law). c. The provider organization will incur significant costs in copying or forwarding the requested records. d. It is never permissible to deny a patient access to his or her records. - Solution a. The information requested consists of psychotherapy notes. The overall goal of the HIPPA Act of 1996 is: a. To ensure the privacy and confidentiality of patient medical records. b. To standardize the sharing of clinical and administrative information. c. To strengthen healthcare data security standards and practices. d. Improve portability and continuity of health insurance, combat fraud. - Solution d. Improve portability and continuity of health insurance, combat fraud.
Congress enacted Stark II to prohibit which of the following? a. A physician or an immediate family member from referring a patient to an entity with which they have a financial relationship. b. Hospitals and physicians from partnering to build in-patient acute care facilities. c. Hospitals and physicians from joint venturing in the offering of outpatient imaging centers. d. A hospital from referring a patient to a wholly-owned entity of which it has total ownership. - Solution a. A physician or an immediate family member from referring a patient to an entity with which they have a financial relationship. Which of the following activities should be performed by the Board of Directors? a. Calculating patient care fees. b. Determining staffing patterns. c. Recruiting new medical staff. d. Hiring the CEO. - Solution d. Hiring the CEO. Performance improvement teams should consist of: a. Experts in process management. b. Members from the involved Microsystems. c. Middle managers with experience. d. Physicians and other users. - Solution b. Members from the involved Microsystems. The four important aspects of clinical support services are technical quality, patient satisfaction, continuity or integration, and: a. Cost-benefit analysis. b. Outcome. c. Appropriateness. d. Health promotion. - Solution c. Appropriateness. A bar chart format, with the items rank ordered on a dependent variable, such as cost, profit, or satisfaction that Examines the components of a problem in terms of their contribution to it is known as: a. A run chart. b. A frequency table. c. Pareto analysis.
a. Hospitals and patients frequently have difficulty arranging for nursing home care services. b. Hospitals generally do not want to refer patients to nursing homes since part of the patient care revenue must be shared. c. Nursing homes generally do not want to refer patients to hospitals since this interferes with state or federal length-of stay requirements. d. Nursing homes are generally thought to be superior to hospitals at chronic disease management. - Solution a. Hospitals and patients frequently have difficulty arranging for nursing home care services. The first step in any strategic management scenario planning is to: a. Develop "what if" scenarios b. Gather information from as many sources as possible. c. Develop courses of action that fit within future organizational resources. d. Conduct a make vs. buy analysis. - Solution b. Gather information from as many sources as possible. Which of the following is the least serious limitation to decision analysis? a. Oversimplifying the problem. b. Inadequate data. c. The decision maker's values. d. The statistical model. - Solution d. The statistical model. In a unionized organization, what is the most effective contract dispute resolution finalization alternative? a. Mediation. b. Corporate Campaigns. c. Arbitration. d. Strike. - Solution c. Arbitration. What does a liquidity ratio measure? a. A firm's ability to meet its current obligations in a timely manner. b. Size of dividends to be paid to shareholders. c. The percent of total funds provided by creditors. d. Days in accounts receivable. - Solution a. A firm's ability to meet its current obligations in a timely manner. The real value of financial statements lies in the fact they can be used to help: a. Predict the firm's future financial condition.
b. Compute total margin versus periodic gain. c. Relate the industry average to net profit/loss over time. d. Understand that a large portion of a hospitals net income may come from nonoperating gains. - Solution a. Predict the firm's future financial condition. Facing struggles such as declining profit margins, nonprofit healthcare organizations have become more dependent on what source for financing capital needs? a. Philanthropy. b. Bond financing. c. Capital leases. d. Operational leases. - Solution a. Philanthropy. You work for a county organization that has decided to issue bonds to fund a new building. What type of bond would be sold on behalf of your organization? a. Mortgage bond. b. Corporate bond. c. Capital bond. d. Municipal bond. - Solution d. Municipal bond. On a balance sheet, what does the difference between total current assets and total current liabilities indicate? a. Cash on hand. b. Net working capital. c. Liquid assets. d. Equity. - Solution b. Net working capital. How should supervisors behave toward informal leaders in the organization? a. Maintain a positive attitude toward informal leaders. b. Ensure informal leaders remain at a moderately low status within the work group. c. Grant informal leaders occasional favors. d. Pass information on to informal leaders before giving it to formal leaders.
- Solution a. Maintain a positive attitude toward informal leaders. Budgets for new capital expenditures include requests for: a. Infrastructure.
