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Question 1

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.

Answer 1

d. Make the conflict known to those in superior positions.

Question 2

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.

Answer 2

a. Finding fault with employees to finding problems in processes.

Question 3

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 thehealthcare executive.
c.An ethical problem for the employee if the healthcare executive receives directeconomic benefit.
d. An ethical problem if it clearly violates state or federal law.

Answer 3

b.
An actual conflict of interest, even absent a direct economic benefit to the
healthcare executive.

Question 4

Which of the following is a unit of measure commonly used to determine physicians’ clinical productivity?

a. RVU
b. CMS
c. IPO
d. CPU

Answer 4

a. RVU

Question 5

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

Answer 5

c. Prospective payment

Question 6

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.

Answer 6

a. Publicly owned healthcare organizations.

Question 7

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.

Answer 7

c. A building with a useful life of 20 years.

Question 8

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.

Answer 8

a. Identifying, planning, implementation, evaluation.

Question 9

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.
c. Summarized in graphs for better understanding.
d. Focused on measurable outcomes of service quality and economic vitality.

Answer 9

d. Focused on measurable outcomes of service quality and economic vitality.

Question 10

The central role of the health services organization board includes all of the following:

a. Setting the strategic plan and service values of the organization.
b. Support for assessing changing market needs.
c. Support in managing important service programs or departments.
d. Assuring the recruitment, hire, support and reward of the CEO.

Answer 10

c. Support in managing important service programs or departments.

Question 11

The first role of the governing body is to:

a. Manage inputs of the healthcare organization to achieve the output that are its goals.
b. Recruit members who understand the health services field.
c. Set objectives and develop policy to guide the organization in achieving its mission.
d. Develop the operating plan and monitor departmental performance.

Answer 11

c.
Set objectives and develop policy to guide the organization in achieving its
mission.

Question 12

Internal members of the healthcare organization’s governing body:

a. Serve on an ad hoc basis and are rarely voting members.
b. Are kept to a minimum due to concerns regarding confidentiality.
c. Often include the CEO, medical director and CFO.
d. Often include the executive staff in planning and information management.

Answer 12

c. Often include the CEO, medical director and CFO.

Question 13

In assessing the advantage of using a focus group over a survey in evaluating a program, one could say that focus groups:

a. Are likely to use a larger sample size.
b. Are more useful in designing improvements to a program.
c. Are more precise in designing improvements to a program.
d. Are useful only when maintaining objectivity is not important.

Answer 13

b. Are more useful in designing improvements to a program.

Question 14

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.

Answer 14

c. Heterogeneity.

Question 15

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.

Answer 15

d. Provide specific objectives for utilization attainment the next fiscal year.

Question 16

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.

Answer 16

c.
Identifying markets, promoting the organization, managing external relationship,
convincing patients to select the organization, attracting capable workers.

Question 17

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.

Answer 17

a. Demand-pull approach.

Question 18

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.

Answer 18

a.
Analyze the current HR situation, forecast HR demand, reconcile with the
budget, forecast HR supply.

Question 19

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.

Answer 19

c. Transition matrix.

Question 20

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.

Answer 20

b. Supply-push approach

Question 21

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.

Answer 21

a. Imposition of formal authority to resolve or suppress conflict.

Question 22

Multi-rater assessment (360 degrees feedback) of managers in healthcare organizations is best used:

a. In the development of a specific action plan by appraises.
b. As part of a training or coaching session.
c. As part of the performance appraisal system of the organization.
d. When the appraisers are held accountable for their ratings.

Answer 22

a. In the development of a specific action plan by appraises.

Question 23

Behaviorally anchored rating scales (BARS) for specific jobs can be:

a. Used to identify components of job behaviors.
b. Developed in a short period of time.
c. Used for evaluation but not for employee development.
d. Subjective on some scale items.

Answer 23

a. Used to identify components of job behaviors.

Question 24

If the amount of charity care increased from one reporting period to the next, which of the following would occur?

a. Provision for bad debts would increase.
b. Unrestricted net assets would increase.
c. Unrestricted net assets would neither, increase or decrease.
d. Unrestricted net assets would decrease.

Answer 24

d. Unrestricted net assets would decrease.

Question 25

Which would be a reasonable basis on which to allocate administrative overhead costs?

a. Salaries.
b. Amount of supplies used.
c. Hours worked.
d. Square footage.

Answer 25

b. Amount of supplies used.

Question 26

The effective cost of debt is roughly the same for both not-for-profit and investor-owned organizations because:

a. Both types of organizations can issue tax-exempt debt.
b. The interest rate is the same on both tax-exempt and regular debt.
c. Neither type of organization can issue tax-exempt debt.
d. The tax deductibility of interest for investor-owned firms offsets the lower coupon rate on tax-exempt debt.

Answer 26

d.
The tax deductibility of interest for investor-owned firms offsets the lower
coupon rate on tax-exempt debt.

Question 27

The master site plan (or master facility plan) for a healthcare organization:

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.

Answer 27

a.
Describes future facility needs (either renovation or new construction) necessary
to meet strategic and operational needs.

Question 28

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.

Answer 28

d. It provides input date for other budgets.

Question 29

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.

Answer 29

d. Patient care areas.

Question 30

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.

Answer 30

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.

Question 31

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.

Answer 31

a. Prevention

Question 32

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.

Answer 32

a. Operational needs.

Question 33

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.

Answer 33

a. Treat information as an essential organizational resource.

Question 34

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.

Answer 34

c. Development of operational inpatient systems.

Question 35

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.
c. Telephonic surveys of anyone who may decide to use the healthcare organization.
d. Weekly meetings with staff members to determine organizational deficiencies.

Answer 35

d. Weekly meetings with staff members to determine organizational deficiencies.

Question 36

Which of the following is an Example of an asset?

a. Accounts payable.
b. Accrued employee benefits.
c. Property, plant and equipment
d. Unrealized gain.

Answer 36

c. Property, plant and equipment

Question 37

Which statement about short-term debt reduces liquidity?

a. Increased use of short-term debt reduces liquidity.
b. Short-term debt provides greater certainty about interest costs over time
c. The interest rates for short-term debt are typically higher than interest rates for long-term debt.
d. An organization that relies on short-term debt replaces the need for working capital.

Answer 37

a. Increased use of short-term debt reduces liquidity.

Question 38

Which of the following is likely to provide useful information for evaluating the profitability of a hospital’s managed care business?

a. Payor mix.
b. Fixed.
c. Contract terms.
d. Changes.

Answer 38

d. Changes.

Question 39

A master patient index (MPI) can best be described as:

a. A relational database containing all identification numbers assigned to patients.
b. A system for converting social security numbers to medical record numbers.
c. A system for converting medical record numbers to patient account numbers.
d. A longitudinal record of all patient encounters for a fixed period of time.

Answer 39

a. A relational database containing all identification numbers assigned to patients.

Question 40

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.

Answer 40

c. Advertise services available to the community.

Question 41

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.

Answer 41

d. Standardize data definitions and data structures.

Question 42

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.

Answer 42

b. Biometric access control devices.

Question 43

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.

Answer 43

a. Form a negotiating team and utilize legal counsel.

Question 44

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.

Answer 44

b. Ability of the software to interface with existing systems.

Question 45

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.

Answer 45

d. Information systems and telecommunications

Question 46

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.

Answer 46

c. Provide technical information and an outside prospective.

Question 47

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.

Answer 47

a.
Information systems planning, selection of software and development of related
organizational policies.

Question 48

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.

Answer 48

d. Utilizing information for operational decision making.

Question 49

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.

Answer 49

a. Issue security codes and limit access to the system.

Question 50

Who has the primary responsibility to assure and maintain the integrity and security of electronic data in a healthcare organization?

a. The Information Services Steering Committee.
b. The Information Services Department.
c. The CIO.
d. The Safety and Security Department.

Answer 50

b. The Information Services Department.