151 -200

Question 1

151) You have been assigned to develop a marketing strategy for your organization. The most important issue to consider is that the marketing strategy be:
a. Broad-based.
b. Customer-centered.
c. Accessible on the Internet.
d. Short-term oriented.

Answer 1

b. Customer-centered.

Question 2

152) What is the first stage in the strategic planning process?
a. Board retreat.
b. Situation analysis
c. Mission statement development.
d. Action planning.

Answer 2

b. Situation analysis

Question 3

153) Which of the following analyses is used for workforce planning and forecasting?
a. Qualifications inventory analysis.
b. Job analysis.
c. Productivity analysis.
d. Ratio analysis.

Answer 3

d. Ratio analysis.

Question 4

154) Which of the following techniques would play a central role in an organization being able to demonstrate equal employment compliance?
a. Job questionnaires.
b. EEOC postings in the human resource department.
c. A job analysis procedure.
d. An established complaint process.

Answer 4

c. A job analysis procedure.

Question 5

155) An organization has made a commitment to begin training its employees to fill anticipated job openings in upcoming years. This is an Example of:
a. Succession planning.
b. Reengineering.
c. Position control.
d. Quality improvement.

Answer 5

a. Succession planning.

Question 6

156) Which of the following is an Example of direct costs?
a. Utility bills.
b. Parking operations.
c. Dept service.
d. Drug prescriptions.

Answer 6

d. Drug prescriptions.

Question 7

157) Healthcare organizations require the filing of annual disclosure statements on the part of board members and officers. This policy is intended to address:
a. Inurement.
b. Theft.
c. Exploitation.
d. Incompetence.

Answer 7

a. Inurement.

Question 8

158) Healthcare organizations are routinely faced with accommodating competing space needs. The key considerations in resolving such issues should be based upon which of the following?
a. Long-range facility plan.
b. Return on investment for each use.
c. Prospective donor’s interest in the program.
d. Board of trustee preference.

Answer 8

a. Long-range facility plan.

Question 9

159) Information systems management security is concerned with the policies and procedures for ensuring the security of:
a. Data.
b. Software.
c. Hardware.
d. Firmware.

Answer 9

a. Data.

Question 10

160) A patient files a complaint relating to a negative hospital experience. The proper handling of this patient’s complaint is to:
a. Cite organizational policy.
b. Side against the organization.
c. Minimize the complaint.
d. Clarify the problem

Answer 10

d. Clarify the problem

Question 11

161) The single most important way patients can help prevent medical errors from affecting them is to:
a. Interact with their caregivers.
b. Research medical error rates among organizations.
c. Read and understand consent forms.
d. Choose large, reputable healthcare providers.

Answer 11

a. Interact with their caregivers.

Question 12

162) In a hospital setting, a critical pathway is best described as:

a. A document that focuses on efficiency and describes a standard set of activities
to be performed for a defined category of patients.
b. A set of guidelines that focus on identifying those decision points which should lead to the consistent provision of appropriate clinical practice.
c. Any attempt to standardize clinical activities based upon diagnostic categories and projected outcomes.
d. Decision tree that focuses on physician decision making.

Answer 12

a. A document that focuses on efficiency and describes a standard set of activities
to be performed for a defined category of patients.

Question 13

163) One reason healthcare entities should document their credentialing procedures is to:
a. Meet federal compliance mandates.
b. Maximize medical staff understanding of the process.
c. Minimize inconsistency and liability.
d. Assist with practitioner auditing.

Answer 13

c. Minimize inconsistency and liability.

Question 14

164) One feature that distinguishes nonintegrated healthcare organizations from integrated organizations is a:
a. Regional community vision.
b. Widely accepted brand identity.
c. Seamless continuum of care.
d. Define market image.

Answer 14

d. Define market image.

Question 15

165) Hospitals pursuing strategic alliances are faced with issues of vertical integration. One Example of vertical integration is:
a. Acquiring a long-term care facility.
b. Creating a “super” physician-hospital organization.
c. Developing a system of local hospitals.
d. Outsourcing laboratory services.

Answer 15

a. Acquiring a long-term care facility.

Question 16

166) Governance challenges faced by fully integrated healthcare delivery systems are more complex than those faced by nonasset merged multihospital
systems because:
a. The components of integrated systems function in a highly interdependent manner.
b. Multi-hospital systems usually have been in existence for a long time.
c. Multi-hospital systems often have an independent governance structure.
d. Boards of multi-hospital systems have a different board selection process.

Answer 16

a. The components of integrated systems function in a highly interdependent manner.

Question 17

167) The purpose of the ACHE Ethics Committee is to review and recommend action on ethical violations to which group?
a. Executive Committee.
b. Board of Governors.
c. Council of Regents.
d. Membership Committee.

Answer 17

b. Board of Governors.

Question 18

168) According to the ACHE Code of Ethics, what action can the Ethics Committee take against an affiliate after a grievance procedure has been initiated?
a. Fine the affiliate.
b. Report the violation to the affiliate’s employer.
c. Issue a written reprimand to the affiliate.
d. Recommend expulsion of the affiliate.

Answer 18

d. Recommend expulsion of the affiliate.

Question 19

169) ACHE’s Ethical Policy Statement on Ethical Issues Related to Downsizing recommends that healthcare executives should consider providing which of the following when downsizing?
a. Financial aid.
b. Child care.
c. Family counseling
d. Out-placement assistance.

Answer 19

d. Out-placement assistance.

Question 20

170) According to the ACHE’s Ethical Policy Statement in Creating an Ethical Environment for Employees, the organization should:
a. Ensure maximum utilization of an employee’s skills and abilities.
b. Create a working environment that provides freedom from coercion.
c. Develop a committee that addresses employee diversity and compliance.
d. Provide sensitivity training to new employees at orientation.

Answer 20

b. Create a working environment that provides freedom from coercion.

Question 21

171) What are the three basic categories of quantitative performance measures used in conventional accounting systems?
a. Market share, customer satisfaction, and quality.
b. Demand, sales, and cost.
c. Demand, cost, and output/productivity.
d. Services rendered, market share, and access.

Answer 21

c. Demand, cost, and output/productivity.

Question 22

172) Under a capitated payment system, the risk sharing arrangements involve which parties?
a. Insurers and patients.
b. Physicians and purchasers.
c. Hospitals and patients.
d. Hospitals and insurers.

Answer 22

d. Hospitals and insurers.

Question 23

173) Which concept of profitability analysis listed below is correct?
a. Internal Rate of Return (IRR) measures a project’s percentage of cash flow.
b. Net Present Value (NPV) is a profitability measure that uses discounted cash flow.
c. Modified Internal Rate of Return (MIRR) is a less accurate measure than a project’s actual rate of return.
d. Profitability Return Rate (PRR) provides the most accurate measure

Answer 23

b. Net Present Value (NPV) is a profitability measure that uses discounted cash flow.

Question 24

174) Which of the following must be included when determining a capital project’s incremental cash flow?
a. Opportunity costs.
b. Cash inflows.
c. Inflation.
d. Internal rate of return.

Answer 24

b. Cash inflows.

Question 25

175) The critical link that brings patients and providers together is:
a. Marketing.
b. Advertising.
c. Strategic planning.
d. External analysis.

Answer 25

a. Marketing.

Question 26

176) The concept of demand management consists of:
a. Concurrent review.
b. Risk assessment.
c. Disease management.
d. Chart review.

Answer 26

a. Concurrent review.

Question 27

177) The primary purpose of generally accepted accounting principles (GAA) in healthcare settings is to:

a. Provide regulators with increased access to high quality financial statements of organizations within their jurisdiction.
b. Ensure that financial information that is reported to outsiders is consistent across businesses and presented in a manner that facilitates interpretation and judgments.
c. Allow interested individuals a rapid means of collecting financial data about hospitals and managed care organizations.
d. Facilitate the training of accountants and other finance professionals in the fundamentals of hospital and health services accounting.

Answer 27

b. Ensure that financial information that is reported to outsiders is consistent across businesses and presented in a manner that facilitates interpretation and judgments.

Question 28

178) The internal rate of return measures the:
a. Number of years to recover the original investment.
b. Discounted future cash flows.
c. Discount rate at which the net present value is zero.
d. Discount rate that the firm uses in computing the cost of capital.

Answer 28

c. Discount rate at which the net present value is zero.

Question 29

179) The Statement of Cash Flows is typically organized into three sections: Cash Flow From Operations; Cash Flow From Investing Activities; and Cash Flow From:
a. Bad Debt Recovery.
b. Regulatory Recapture.
c. Financing Activities.
d. Donations & Foundation Support.

Answer 29

c. Financing Activities.

Question 30

180) Which of the following combines data from a balance sheet and an income statement to create a single number that facilitates easy interpretation?
a. Financial ratio analysis.
b. Acid test ratio.
c. Operating margin ratio.
d. Cash flow analysis.

Answer 30

a. Financial ratio analysis.

Question 31

181) In a healthcare organization, who has ultimate fiduciary responsibility?
a. Chief financial officer
b. Board of directors.
c. Medical staff officers.
d. Senior management.

Answer 31

b. Board of directors.

Question 32

182) Medicare DRG payment is highly dependent upon a hospital’s case mix index. This index represents the average relative weight for all Medicare patients treated in a:
a. Specific nursing unit or specialty area.
b. Specific period.
c. Common geographic market.
d. Specific facility.

Answer 32

b. Specific period.

Question 33

183) If a CEO wanted to look at a “snapshot” of the financial condition of the healthcare organization, he/she would review which of the following?
a. Income Statement.
b. Balance Sheet.
c. Retained Earnings Statement.
d. Investment Portfolio.

Answer 33

b. Balance Sheet.

Question 34

184) Where should charity care be shown in a healthcare organization’s financial statement?
a. In the balance sheet.
b. In the statement of operations.
c. In the statement of changes in net assets.
d. In the notes to the financial statements.

Answer 34

d. In the notes to the financial statements.

Question 35

185) Which of the following is the best way to assign costs in responsibility management?
a. Allow each department manager to be responsible for a different type of fixed cost.
b. Allow each department manager to choose the cost that he/she prefers to control.
c. Assign costs to the department manager who is responsible for making decisions about those costs.
d. Assign costs equally to all managers thus allowing equal responsibility for costs

Answer 35

c. Assign costs to the department manager who is responsible for making decisions about those costs.

Question 36

186) You are planning to conduct an assessment of the utilization patterns in your organization’s emergency department over the past three years. Which of the following techniques would be most appropriate?
a. Strategic Planning.
b. Trend Analysis.
c. Situational Analysis.
d. Survey Research.

Answer 36

b. Trend Analysis.

Question 37

187) A manager who seeks input from others prior to making a decision is engaging in which leadership style?
a. Autocratic.
b. Participative.
c. Democratic.
d. Laissez-faire.

Answer 37

b. Participative.

Question 38

188) When a specialist within the organization provides a directive or states an opinion, there is recognition of that individual as an expert in the field. This is an Example of what type of authority?
a. Positional.
b. Functional.
c. Personal.
d. Charismatic.

Answer 38

b. Functional.

Question 39

189) Which of the following is not an Example of marketing function?
a. Promoting the organization.
b. Convincing patients to select the organization.
c. Managing external relationships.
d. Reviewing organizational costs.

Answer 39

d. Reviewing organizational costs.

Question 40

190) The arrival of women for obstetrical deliveries or patient flow in an emergency department can best be analyzed through the use of which technique?
a. Pert Charting
b. Stochastic Modeling.
c. Gant Charting.
d. Monte Carlo Simulation.

Answer 40

b. Stochastic Modeling.

Question 41

191) One approach for measuring technical quality of clinical support services is:
a. Patient satisfaction scores.
b. Degree of continuity of care.
c. Appropriateness testing.
d. Process review.

Answer 41

d. Process review.

Question 42

192) Which financial statement is updated daily to reflect changes in assets or composition of financing?
a. The flash report.
b. The balance sheet.
c. The statement of operations.
d. The statement of cash flows.

Answer 42

b. The balance sheet.

Question 43

193) An organization’s long-term competitive position is substantially dependent on its credit rating. Which of the following is a direct benefit of an excellent credit rating?
a. Increased market share.
b. Improved quality of clinical care.
c. Improved cost of capital.
d. Increase in community rating

Answer 43

c. Improved cost of capital.

Question 44

194) The applicability of continuous improvement in healthcare organizations assumes:
a. An upper limit of improvement.
b. The physician’s perspective is dominant.
c. An organizational commitment.
d. The elimination of outliers.

Answer 44

c. An organizational commitment.

Question 45

195) Which of the following is an output-related performance measure?
a. Provider productivity.
b. Board satisfaction.
c. Customer loyalty index.
d. Paid nursing hours

Answer 45

a. Provider productivity.

Question 46

196) The thrust of antitrust legislation as applied to the healthcare field is to:
a. Contain costs.
b. Contain rising costs of independent single unit hospital.
c. Monitor the scope of health services provided in a given area.
d. Protect the public’s economic interest.

Answer 46

d. Protect the public’s economic interest.

Question 47

197) The primary function of an extended-care unit is to provide:
a. Post-acute care services in a rehabilitation-oriented environment.
b. Self-care facilities for ambulatory patients.
c. Additional facilities for geriatric cases.
d. More intensive nursing care for chronically ill patients.

Answer 47

a. Post-acute care services in a rehabilitation-oriented environment.

Question 48

198) All of the following are essential components of strategic planning except:
a. The corporate mission statement.
b. Timetables for activity completion.
c. Competitive analysis.
d. Assessment of the external environment.

Answer 48

b. Timetables for activity completion.

Question 49

199) Which one of the following conditions must be met for human subjects to be used in a medical research program?
a. No suitable animal model exists for use instead of people.
b. The research program has been approved by the medical staff.
c. The research program has been approved by the governing authority.
d. Risk should be clearly explained in understandable language to each individual subject.

Answer 49

d. Risk should be clearly explained in understandable language to each individual subject.

Question 50

200) Controlling the costs of accounts receivable is heavily affected by:
a. The time or length of the payment cycle.
b. The dollar amount of credit granted to individuals.
c. The total dollar amount of receivables carried on the books.
d. Working capital management.

Answer 50

a. The time or length of the payment cycle.