ACHE BOG Exam Sample Test -100
Questions And Answers 100% Correct
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 - 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 - 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 - d. organizing the board's work
Members of the medical staff are eligible for full membership on the governing board in the
same manner as other individuals:
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. 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 - 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
d. establishes guidelines and makes final choices among competing opportunities - d.
establishes guidelines and makes final choices among competing opportunities
The individual or group responsible for establishing policy, maintaining quality of care, and
providing for institutional management planning is the:
a. COO
b. Medical Staff Medical Committee
c. Governing Body
d. CEO - c. Governing Body
A correct statement regarding trustee serving as fiduciaries is that they can:
a. be indicted for alleged theft of facility funds and improper expenditures of facility funds
for personal reasons.
b. be released from responsibility by giving the audit committee final authority in high risk
areas of financial matters, without any action by the whole board
c. be held personally liable for wrongful acts or omissions by corporate officers or cotrustees by virtue of their position as trustees
d. waive their fiduciary responsibility as a community organization - a. be indicted for
alleged theft of facility funds and improper expenditures of facility funds for personal
reasons.
Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO - b. Governing Board
A key reason for choosing board members is because:
a. other board members want to listen to their opinions.
b. of what they can do for the organization
c. have high status in the community
c. physicians will listen to them they can - b. of what they can do for the organization
The bylaws of healthcare organization should include which of the following?
a. Committee scope and function
b. The privileges of the medical staff
c. The names of the stockholders in the organization
c. Composition of the governing board, committee, and officers - c. Composition of the
governing board, committee, and officers
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 - 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. - b. managing
diversification successfully, to guard against expanding too rapidly or into areas they have
little knowledge
In the introductory stage of a product life cycle:
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 - 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 - 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.
d. responsibility for the creation of the organization's image does not lie merely with the
marketer - 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 - 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
4. All the above - b. Objective and task method
All of the following are methods used to forecast future demands except:
a. target buyer intention surveys
b. performance of an environmental assessment
c.estimation of a competitor's current customer base
d. estimate of future demand by "middlemen" - c. estimation of a competitor's current
customer base
All of the following statements are true except that:
a. much of the art of forecasting relies on the opinions of experts
b. forecasting, if correctly performed relying on technological forecasting approaches, is an
exact science
c. forecasting includes applying the rates of anticipated future change to the current status
to predict the future
d. qualitative date are often used in developing assumptions on which quantitative
forecasting can be constructed - b. forecasting, if correctly performed relying on
technological forecasting approaches, is an exact science
Which of the following environmental assumptions for the next decade is not reasonable?
a. Cost containment pressures will continue to be a dominate factor in the delivery of
health services
b. There will be decreased morbidity (substance abuse, violence, accidents, etc.)
c. Continued growth in new technologies will focus on cost -saving technologies that move
care from inpatient settings to out -of-hospital settings.
d. There will be continuing efforts to measure and assure quality of healthcare services. - b.
There will be decreased morbidity (substance abuse, violence, accidents, etc.)
Of the following advertising media, which of the potentially has the maximum selectivity in
reaching defined target audience?
a. Local radio
b. Direct mail
c. Network TV
4. Outdoor advertising - b. Direct mail
The major value of job analysis is that it is:
a. used to establish wage levels
b. The best method for identifying the need for employees
c. the cornerstone of human resources management activities
valid for a long period of time. - 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 - 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. - 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
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 - 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 - 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 - a. performance norms
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 - 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 highrisk alternatives
d. "behavioral transference" when values and norms of other work groups are discounted b. "free-riding" when individuals can benefit from the work of the group without making a
suitable contribution
The major benefit of integrative dimension of negotiation over the distributive dimension
is that the:
a. value of the Best Alternative to a Negotiated Agreement is increased
b. value of the Best alternative to a Negotiated Agreement is decreased
c. complexity of the negotiation process is simplified
d. amount of resources to be distributed is increased, allowing both parties to reach their
reservation prices - d. amount of resources to be distributed is increased, allowing both
parties to reach their reservation prices
As managerial vacancies occur, the availability of well-trained individuals who understand
the organization's mission, vales, culture and strategy is enhanced by:
a. the use of an executive search firm to fill managerial vacancies
b. rotation of managerial responsibilities among the organization
c. the use of an effective succession planning program
d. uniform management development programs for midlevel and senior-level managers - c.
the use of an effective succession planning program
Capital rationing in the investment decision process refers to the:
a. decision on which of the proposed capital projects will be funded
b. decision on the total amount of funds available for capital projects
c. decision on the financial merits of each proposal
d. decision on the amount of funds to be borrowed for capital projects - a. decision on
which of the proposed capital projects will be funded
A positive net present value indicates that the investment has a rate of return:
a. decision on which of the proposed capital projects will be funded
b. lower than the discount rate used in the calculation
c. equal to the discounted rate used in the calculation
d. equal to the accounting profit averaged over the life of the investment. - a. decision on
which of the proposed capital projects will be funded
For information on net cash flow from providing health services for a specific time frame,
the decision maker should use the:
a. statement of cash flow
b. income statement
c. balance sheet
d. statement of retained earnings - a. statement of cash flow
Memorial Hospital offers a screening test as a public service for $.50 per test. Variable cost
per unit are $.32. Fixed cost are $43,200 per month for the department performing the test.
It is the only test done by this special department. the break-even point in the test is:
a. 240,000 tests
b. 172,800 tests
c. 135, 000 tests
d. 86,400 tests - 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 - 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 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. - 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. - 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
c. effectiveness of capital structure decisions
d. effective use of current assets - 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 - 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 - d. borrowing and lending rates
are equal with each period
The difference between an accounting break-even point and an economic break-even point
is that:
a. the economic break-even point provides the required rate of return to all suppliers of
capital to the provider
b. the economic break-even point does not recognize expense category
c. the accounting break-even point provide s for total financial requirements
d. there is no difference - a. the economic break-even point provides the required rate of
return to all suppliers of capital to the provider
Under the capitation, the risks of over-utilization are shifted to the:
a. patient receiving the health service
b. provider of the health service
c. third party payors
d. health insurance company - b. provider of the health service
Which of the following ratios would be used to estimate cask flow for a specific time period:
a. Receivable balance TO Average daily revenue for period
b. Net Account receivable TO Gross account receivables
c. Cash collected during period TO Revenue for period
d. Deduction from revenue TO Gross revenue for period - c. Cash collected during period
TO Revenue for period
In developing workload measurements for estimating manpower requirements for budget
preparation, the analyst should first:
a. develop relative units for each cost center
b. predict payor mix for the budget year
determine available staff for each department
d. forecast total admissions activity levels and patient days - d. forecast total admissions
activity levels and patient days
Under generally accepted accounting standards, bad debt are reported as a/an:
a. deduction from revenue
b. operating expense
c. contractual allowance
d. deduction from gross revenue - b. operating expense
A technique used to shorten the in-house processing time of the accounts receivable cycle
is a:
a. "lock-box" agreement
b. line of credit arrangement
c. minimum balance agreement
d. shorten write-off date - 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 - 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 - b. that the purchase is part of the
facility's capital plan
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 - 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 - 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
c. monitor an established set of performance measures on a periodic basis
d. have an outside consultant review the program - 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 - 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 - b. the facility's strategic plan and volume projections
A facility maintenance program will be most effective if:
a. request for service are satisfied promptly.
b. reliability, safety and efficient operation guide the plan's design
c. system failures occur rarely
d. backup plans exist for major system - b. reliability, safety and efficient operation guide
the plan's design
The plan for maintenance of the physical plant should emphasize:
a. customer satisfaction
b. minimal downtime for equipment
c. preventive maintenance
d. rapid response to problems - c. preventive maintenance
One of the major elements of a master plan for information systems development in a
healthcare organization is:
a. a request of r proposal (RFP) from vendor
b. a list of specifications for computer programs
c. the setting of individual computer applications
d. a list of specifications for computer hardware installation and maintenance - c. the
setting of individual computer applications
An information system contract for a healthcare organization should be drafted by:
a. an independent management consultant
b. the vendor who will supply the system
c. the organization's legal counsel
d. technical staff from the organization and the vendor working together. - c. the
organization's legal counsel
To compete for managed care contracts, healthcare providers must be able to provide data
to managed care organizations on:
a. cost and quality of services provided
b. medical technology employed in the delivery of care
c. efficiency of internal operations
d. number of personnel employed in the organization - a. cost and quality of services
provided
The chief information officer for a healthcare organization should supervise the following
functions in the organization:
a. information systems and telecommunications
b. mix of services provided
c. utilization review and risk management
d. clinical engineering programs - 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. - 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
d. the CIO and outside technical consultants - 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 - 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 - 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:
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 - 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 - 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 - a. computerized protocols to aid in diagnosis
and treatment planning
With respect to the processes by which healthcare organizations maintain the
confidentiality, security, and integrity of the medical record, all of the following statements
are true EXCEPT:
a. the original medical record of a patient being transferred from one healthcare
organization to another may accompany the patient to new organization
b. healthcare organization must have a mechanism to preserve the confidentiality of
data/information identified as sensitive
c. the organization must have a mechanism to safeguard records against loss, destruction,
tampering, and unauthorized access or use.
d. written policies must require that medical record may be removed from the
organization's jurisdiction only in accordance with a court order, subpoena, or statue - a.
the original medical record of a patient being transferred from one healthcare organization
to another may accompany the patient to new organization
All of the following are commonly recognized to be right of each patient EXCEPT the right
to:
a. received considerate and respectful care
b. access protective services
c. communicate with caregiver in the language the patient's choosing
d. be informed about participant in decision regarding their care - c. communicate with
caregiver in the language the patient's choosing
All of the following statements about documentation in the medical record are true
EXCEPT:
a. verbal orders must be authorized by the practitioner within a time frame to be defined
by the medical staff
b. verbal orders can only be accepted by registered nurses
c. authentication may be made by actual written signatures, initials, rubber stamp
signatures, or computer "signatures"
d. that entries must be authenticated by the actual author only - b. verbal orders can only
be accepted by registered nurses
Current JCAHO guidelines regarding the design of new patient care processes include all of
the following EXCEPT:
a. the design is clinically up-to-date
b. the design is based on the organization's mission, vision, values, and plans
c. the design meets the needs and expectation of key constituents
d. the design team includes physicians or their designees - d. the design team includes
physicians or their designees
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 - 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 - b. rarely need to be revised
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 - 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 - b. HEDIS quality indicators
evaluate preventive services, prenatal care, acute and chronic illness, and mental health
and substance abuse program
The governing authority assures itself about the quality of care by:
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 - 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 - 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
c. the law prevents hospitals from lobbying
d. hospitals do not have a vote - d. hospitals do not have a vote
In general, courts exhibit what attitude regarding controversies over medical staff
privileges?
a. Human lives are at stake and the courts must intervene to protect physicians' rights to
save those lives
b. If the decision were supported by reasonable evidence, courts will not substitute their
judgment for that of the hospital board
c. Hospitals must not be permitted to interfere with the doctor-patient relationship
d. Courts may not entertain suits regarding medical staff privileges - b. If the decision were
supported by reasonable evidence, courts will not substitute their judgment for that of the
hospital board
Under federal law, whenever a patient comes to a hospital emergency department with an
emergency condition:
a. with few expectations, the patient's liability to pay may be considered in determining
whether to provide treatment
b. with few expectations, the patient's condition must stabilize before he or she is
transferred or discharged
c. a police may be asked to authorize treatment
d. the hospital has no duty to treat the person if he/she is not a patient or a member of the
medical staff - b. with few expectations, the patient's condition must stabilize before he or
she is transferred or discharged
In considering applications for medical staff privileges, hospitals receive reports from the
US Government clearing house on malpractice payments and adverse medical staff
licensure actions. In general, these reports have had which effect?
a. Reports have rarely led hospitals to make privileging decisions they would not have
made otherwise
b. Reports have bee timely and helpful and have reduced the complexity of the privileging
process
c. had they not received the reports, most hospitals' privileging decisions would usually
would have been different.
d. Hospitals usually receive significant information that neither the practitioner involved
nor any other sources had provided - a. Reports have rarely led hospitals to make
privileging decisions they would not have made otherwise
Which of the following statements BEST summarizes the prevailing legal standards used to
judge the actions of members of a not-for -profit healthcare organization's governing
board?
a. They must act in good faith, with reasonable care, and with the best interests of the
corporation in mind.
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 - 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 - 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
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 - 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 - 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
d. force high-priced hospitals out of the local market via discounts - 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 - 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 - c. establish clinical necessity prior to
service
Healthcare organizations encourage their employees to contribute to the United Way and
other community groups primarily because these agencies:
a. promote the image of the healthcare organization
b. provide funds to support many community services
c. will return funds to healthcare organizations
d. have healthcare organizations executives on their board - b. provide funds to support
many community services
Healthcare facilities serving disabled populations might wish to systematically review
concerns by:
a. adding specific questions to patient satisfaction instruments
b. consulting periodically with advocacy agencies
c. reviewing patient complaints raised by disabled individuals
d. reviewing their compliance with ADA - a. adding specific questions to patient satisfaction
instruments
Which one of the following characteristic differentiate a multihospital system from a
network or alliance:
a. the geographic distribution
b. the corporate structure
c. vertical integration
d. horizontal integration - b. the corporate structure
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. the subsidiary - d. the subsidiary
Two independent healthcare organizations interested in discussing a joint venture to
initiate a cancer treatment program would be wide to initially consult with their legal
counsel to determine if their:
a. liability is equal even though disproportionately owned
b. financial gains or losses can be shared unequally
c. discussions might violate antitrust statues.
d. current facilities can accommodate the program - c. discussions might violate antitrust
statues.
The healthcare executive with opposing duties (obligations) meeting one of which makes it
impossible to meet other has a :
a. conflict of interest
b. management ethical dilemma
c. need for a consultant
d. situation that is impossible - 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 - 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 - d. written and unwritten
The most common and useful ways to overcome resistance to change in organizations are:
a. education and communication
b. manipulation and co-optation
c. committees and task forces
d. inspirational leadership and managerial skill - 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 - 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
d. must meet malpractice law continuing education standards - b. must meet requirements
of their certifying group