Past Questions from ACHE’s Board of Governors Exam

Preparing to take the Board of Governors Examination in Healthcare Management? Use these questions from past versions of the exam to test your level of preparation.

1. For the routine service cost center, an increase in the number of patient days over the budgeted number of patient days will result in:

  1. A higher average cost per patient day.
  2. A lower average cost per patient day.
  3. An increase in the budgeted fixed costs for the routine service cost center.
  4. No change in the average cost per patient day.

2. Which of the following balance sheet items would differ between a for-profit and a not-for-profit healthcare organization?

  1. Retained earnings.
  2. Plant, property, and equipment.
  3. Real estate.
  4. Investments.

3. Which of the following leadership actions most clearly supports organizational transformation toward total quality management?

  1. Convening and chairing the Quality Council.
  2. Changing the name of the quality department from QA to CQI.
  3. Requiring all direct reports to attend an introductory course in TQM.
  4. Hiring a customer service representative.

4. In the healthcare field, the accountability of management is best measured by the:

  1. Balance maintained between service quality and operational efficiency.
  2. Results shown on the annual expense and income statement.
  3. Balance maintained between physician satisfaction and patient needs.
  4. Degree to which management’s needs are met.

5. Consumer “report card” development and distribution has become a high priority for managed care organizations because:

  1. Measurements of performance have now become well established, standardized, and accepted by all parties.
  2. Purchasers are pressuring for disclosure of meaningful performance information for use by buyers and consumers.
  3. Consumers in healthcare are now well organized, and managed care organizations feel a need to satisfy them.
  4. Physicians are increasingly encouraging their patients to evaluate managed care organizations based on these report cards.

6. Which of the following is not required for managing strategic adaptation?

  1. Development of integrated continuums of care.
  2. Development of successful hospital-physician partnerships.
  3. Vertical and horizontal integration with out-of-area providers.
  4. Programs of strategic leadership development for board members, managers, physicians, and nurse leaders.

7. What is an important advantage of physician participation in Independent Practice Associations (IPAs) versus other affiliation arrangements with HMOs?

  1. IPA arrangements normally pay physicians better than staff or group model arrangements.
  2. Physicians participating in IPAs can limit their dependence on any single HMO.
  3. IPA arrangements avoid the serious tensions that arise between primary care and specialty physicians.
  4. IPAs rarely use utilization management mechanisms like primary care gatekeeping and preadmission certification.

8.The point-of-service product is the fastest growing managed care product in the contemporary marketplace because:

  1. It allows consumers to place a direct value on how important provider choice is to them.
  2. The product is less costly for Managed Care Organizations (MCOs), employers, and employees.
  3. Managed Care Organization (MCO) utilization management systems are so well developed that they can affod to let people go out of the network without any increase in costs.
  4. Primary care physicians prefer to have their patients seek specialty care without referrals.

9. The agency normally responsible for regulation of the financial solvency and subscriber regulations of HMOs is the:

  1. U.S. Department of Health and Human Services.
  2. State insurance commission/department.
  3. Medicaid agency/department.
  4. Department of Taxation.

10. Many hospitals develop affiliations with college-based nursing education programs to:

  1. Improve the image of the hospital in the community.
  2. Improve access to qualified graduates.
  3. Provide financial support to higher education.
  4. Gain the services of low-cost trainees.

11. The critical-incidents technique of employee performance appraisal requires raters to:

  1. Select statements that fit the performance characteristics of individuals.
  2. Select the highest and lowest performing employee in a work unit.
  3. Record the degree to which specified behaviors are performed.
  4. Record behaviors of employees that are related to both good and poor performance.

12. The primary components of a healthcare organization’s mission statement include:

  1. Community served and time frame.
  2. Community served and services provided.
  3. Services provided and financial results.
  4. Services provided and patient care quality.

13. A key role for any governing board is:

  1. Establishing the budget.
  2. Working cooperatively with individual physicians.
  3. Representing the community.
  4. Recruiting and evaluating the chief executive officer.

14. One of the major elements of an information system strategic plan includes the:

  1. Request for proposals from vendors
  2. Specifications for computer program documentation.
  3. Specifications for computer hardware maintenance.
  4. Software development plan.

15. Selection of an information system in a healthcare organization should begin with:

  1. Meeting with several information systems vendors to determine the scope of available technology.
  2. Hiring an information systems consultant to determine the organization’s strategic needs.
  3. Development of an information systems plan that supports the organization’s existing strategic objectives.
  4. Evaluation of available hardware and software to best determine what meets the organization’s needs.

16. Which of the following does not accurately describe patient management guidelines? Patient management guidelines:

  1. Are developed and managed by physicians.
  2. Include economy, patient satisfaction, and pharmacology.
  3. Are the most extensive development in clinical expectations.
  4. Specify actions which deliberately constrain doctors’ judgments based on individual patients.

17. Large gifts to not-for-profit (tax-exempt) health services organizations do not suggest a conflict of interest, whereas a large gift to a manager of such an organization is likely to be ethically unacceptable. The difference is that:

  1. Managers fail in their duty of loyalty to the organization by accepting gifts.
  2. Organizations are ethically neutral entities in the eyes of the public and law.
  3. Gifts to the organization benefit both the patients and the general public.
  4. No direct individual relationship is established by giving to the organization.

18. In general, it is believed that when preliminary research findings show that an experimental therapy is effective, the experimental therapy should be provided to the control group because:

  1. That is part of the standard contract for all research protocols.
  2. It is unethical to deny someone potentially beneficial therapies.
  3. The Nuremberg Code, widely used in the United States, requires it.
  4. Researchers have an unwritten code that makes it mandatory.