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Question 1

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Which level of care provides services to patients who no longer need acute hospital care but still require skilled nursing or rehabilitation services?

Ambulatory care

Subacute care

Preventive care

Primary care

to track

2026 Statistics

Key Facts: FACHE Exam

230

Total Questions

ACHE

200

Scored Questions

ACHE

6 hours

Time Limit

ACHE / Pearson VUE

~65%

Passing Score

ACHE

$225

Exam Fee

ACHE

3 years

Recertification Cycle

ACHE

The FACHE Board of Governors Exam has 230 multiple-choice questions (200 scored) and a 6-hour time limit. ACHE charges a $225 exam registration fee plus a $250 Fellow application fee. The passing score is approximately 65% of scored questions. The current exam outline, effective August 1, 2023, covers 10 knowledge areas with Healthcare (15%) and Management and Leadership (13%) receiving the most weight.

Sample FACHE Practice Questions

Try these sample questions to test your FACHE exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which level of care provides services to patients who no longer need acute hospital care but still require skilled nursing or rehabilitation services?

A.Ambulatory care

B.Subacute care

C.Preventive care

D.Primary care

Explanation: Subacute care bridges the gap between acute hospital care and home care, providing skilled nursing, rehabilitation, and other services for patients who are medically stable but still require a higher level of care than can be provided at home. This level of care is an important component of the healthcare continuum.

2What is the primary purpose of a community health needs assessment (CHNA) for nonprofit hospitals?

A.To establish physician recruitment targets

B.To comply with state licensure renewal requirements

C.To determine marketing strategies for new service lines

D.To identify health priorities and resource gaps in the community served

Explanation: A community health needs assessment (CHNA) identifies the significant health needs of the community served by a nonprofit hospital. Required by the Affordable Care Act under IRS Section 501(r), CHNAs help hospitals prioritize resources and develop implementation strategies to address identified community health needs.

3Which healthcare delivery model integrates financing and delivery of a comprehensive set of healthcare services to an enrolled population?

A.Accountable Care Organization

B.Preferred Provider Organization

C.Health Maintenance Organization

D.Fee-for-service model

Explanation: A Health Maintenance Organization (HMO) integrates both the financing and delivery of comprehensive healthcare services to enrolled members, typically requiring members to use network providers and obtain referrals from a primary care physician. HMOs emphasize preventive care and manage utilization to control costs.

4What distinguishes a tertiary care hospital from a secondary care facility?

A.Tertiary care hospitals provide highly specialized services such as organ transplantation and advanced trauma care

B.Tertiary care hospitals only treat patients with chronic conditions

C.Tertiary care hospitals are always nonprofit organizations

D.Tertiary care hospitals focus exclusively on outpatient services

Explanation: Tertiary care hospitals provide highly specialized medical and surgical services, including organ transplantation, burn treatment, neonatal intensive care, and advanced trauma care. These facilities typically serve as referral centers and have subspecialty expertise not available at secondary care community hospitals.

5Which federal program provides healthcare coverage primarily to low-income individuals and families through a joint federal-state partnership?

A.TRICARE

B.Medicaid

C.Veterans Health Administration

D.Medicare

Explanation: Medicaid is a joint federal-state program that provides healthcare coverage to eligible low-income individuals and families. Each state administers its own Medicaid program within federal guidelines, resulting in variations in eligibility criteria and covered services across states. The Affordable Care Act expanded Medicaid eligibility in participating states.

6A healthcare executive notices increasing emergency department utilization by patients with non-emergent conditions. Which population health strategy would MOST effectively address this trend?

A.Implementing a community-based primary care access program

B.Increasing ED physician staffing

C.Adding a fast-track triage system in the ED

D.Expanding emergency department capacity

Explanation: Implementing a community-based primary care access program addresses the root cause of non-emergent ED utilization by providing appropriate, accessible alternatives for patients who lack primary care access. This population health approach reduces unnecessary ED visits while improving health outcomes and lowering overall healthcare costs.

7Which type of healthcare organization model uses a single governing board and integrated management structure to coordinate care across multiple service settings?

A.Physician-Hospital Organization

B.Integrated Delivery Network

C.Independent Practice Association

D.Group Practice Without Walls

Explanation: An Integrated Delivery Network (IDN) uses a single governing structure to coordinate healthcare services across multiple settings, including hospitals, physician practices, post-acute care, and other services. IDNs aim to improve care coordination, reduce fragmentation, and manage the full continuum of patient care under unified leadership.

8What is the primary distinction between Medicare Part A and Medicare Part B?

A.Part A covers inpatient hospital services while Part B covers outpatient and physician services

B.Part A requires monthly premiums while Part B is premium-free

C.Part A covers prescription drugs while Part B covers hospital services

D.Part A is means-tested while Part B is available to all enrollees

Explanation: Medicare Part A covers inpatient hospital services, skilled nursing facility care, hospice, and some home health services, and is generally premium-free for eligible beneficiaries. Part B covers outpatient services, physician visits, preventive services, and durable medical equipment, requiring monthly premium payments from enrollees.

9Social determinants of health account for approximately what percentage of a person's overall health outcomes?

A.10-15%

B.40-50%

C.20-30%

D.60-80%

Explanation: Research consistently shows that social determinants of health — including socioeconomic status, education, neighborhood environment, employment, and social support networks — account for approximately 40-50% of health outcomes. This underscores the importance of healthcare executives addressing upstream factors beyond clinical care to improve population health.

10Which healthcare trend is MOST directly driving the shift from volume-based to value-based reimbursement?

A.Shortage of primary care physicians

B.Growth of retail health clinics

C.Increasing consumer demand for telehealth services

D.Rising healthcare costs coupled with inconsistent quality outcomes

Explanation: The shift from volume-based to value-based reimbursement is driven primarily by the unsustainable rise in healthcare costs alongside evidence of significant variation in quality outcomes. Value-based payment models incentivize providers to deliver better outcomes at lower costs, addressing both the cost and quality challenges simultaneously.

About the FACHE Exam

The Board of Governors Exam in Healthcare Management is the final step to earning the FACHE (Fellow of the American College of Healthcare Executives) credential. It tests a broad body of knowledge across 10 domains of healthcare executive leadership, from finance and operations to governance and ethics.

Assessment

230 multiple-choice questions (200 scored, 30 unscored pretest items) across 10 knowledge domains

Time Limit

6 hours

Passing Score

~65%

Exam Fee

$225 (exam) + $250 (application) (ACHE)

FACHE Exam Content Outline

15%

Healthcare

Healthcare terminology, trends, care delivery models, population health, social determinants of health, and digital health.

13%

Management and Leadership

Implementation planning, emergency preparedness, organizational systems, leadership styles, change management, and team building.

12%

Finance

Financial accounting, budgeting, reimbursement methodologies, revenue cycle, supply chain, and capital planning.

12%

Human Resources

HR laws, recruitment and retention, staffing methodologies, performance management, succession planning, and labor relations.

Laws and Regulations

Healthcare compliance laws, Medicare and Medicaid regulations, accreditation standards, patient rights, and HIPAA.

Quality and Performance Improvement

Benchmarking, peer review, risk management, PDSA, Lean, Six Sigma, HCAHPS, and patient safety.

Business

Strategic planning, business planning, marketing, media relations, contract negotiation, and socioeconomic impact.

Healthcare Technology and Information Management

Health IT operations, technology trends, HIPAA security, interoperability, analytics, and disaster recovery.

Professionalism and Ethics

ACHE Code of Ethics, patient rights, ethics committees, cultural diversity, conflict of interest, and ethical culture.

Governance and Organizational Structure

Governance theory and structure, medical staff relationships, board accountability, and public policy advocacy.

How to Pass the FACHE Exam

What You Need to Know

Passing score: ~65%
Assessment: 230 multiple-choice questions (200 scored, 30 unscored pretest items) across 10 knowledge domains
Time limit: 6 hours
Exam fee: $225 (exam) + $250 (application)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

FACHE Study Tips from Top Performers

1Start by reviewing the official ACHE Board of Governors Exam Outline effective August 1, 2023 to understand the 10 knowledge areas and their weights.

2Use the ACHE Healthcare Executive Competencies Assessment Tool to identify your strengths and weaknesses before building a study plan.

3Focus extra study time on Healthcare (15%), Management and Leadership (13%), Finance (12%), and Human Resources (12%), which together make up over half the scored questions.

4Practice applying concepts to real-world healthcare management scenarios rather than memorizing definitions, since exam questions are experience-based.

5Allow 3 to 6 months of preparation time and consider joining a local ACHE chapter study group for peer support.

Frequently Asked Questions

How many questions are on the FACHE Board of Governors Exam?

The exam has 230 multiple-choice questions. Of those, 200 are scored and 30 are unscored pretest questions that do not affect your score.

How long do I have to complete the FACHE exam?

Candidates have up to 6 hours to complete the Board of Governors Exam at a Pearson VUE testing center.

What is the passing score for the FACHE exam?

The passing score is approximately 65% of the 200 scored questions. ACHE uses a criterion-referenced passing standard set by subject-matter experts.

How much does the FACHE exam cost?

The exam registration fee is $225 per attempt. There is also a one-time $250 Fellow application fee. ACHE offers fee waivers for applications submitted between March 1 and June 30.

What are the eligibility requirements for FACHE?

Candidates need a master's degree or higher, at least 5 years of healthcare management experience, current ACHE membership, 36 continuing education credits in three years, two community/civic activities, and two healthcare-related activities.

How often do I need to recertify my FACHE credential?

FACHE certification must be renewed every 3 years. You can recertify by completing 36 continuing education credits or by retaking the Board of Governors Exam.