“Credentialed member, American Academy of Medical Administrators”



The objective section of the examination is comprised of one hundred (100) multiple choice questions. From the eight core areas, questions will be selected to test the applicant’s knowledge and understanding of the language, tools, and concepts central to administrative practice. To assist the candidate in preparing for the examination, the following sample questions have been selected from the examination question bank. Correct answers to the sample questions appear after the section on the essay portion of the exam.

1. The term health system loosely describes all the resources a country devotes to health promotion, disease prevention, and medical care, including health organizations and their relationships. Health systems continually evolve in response to changes in all of the following ways except for

a. demographic and disease patterns of populations b. political power of physicians related to the power of governments, consumers, and other service providers c. technical and biomedical developments that shape organizational roles d. managerial and labor disputes on salary and benefits e. public policies regarding medical care quality, access, and cost Answer: ______

2. Fundamental to the financial condition of a healthcare delivery system are the mechanisms used for provider reimbursement and the levels at which providers are reimbursed. The method of reimbursement that pays providers a fixed amount per member per month is called

a. fee schedule b. capitation c. RBRVS d. per diem e. DRGs Answer: ______

3. The management of XYZ Hospital is concerned about the performance trend shown by the institution in recent years. Which of the following financial statements will be most useful in any effort to analyze and correct the situation?

a. the balance sheet b. the income statement c. the inventory statement d. the schedule of debt e. the cash flow statement Answer: ______

4. Expenses that may vary directly with the quantity of work being performed are _________ costs

a. fixed b. semi-variable c. variable d. rolling budget e. semi-fixed Answer: ______

5. Which of the following is a primary reason why health systems decentralize authority to operating divisions?

a. to establish uniform operating methods b. to take advantage of a strong corporate staff c. to provide better coordination of activities among operating divisions d. to increase accountability by establishing profit centers Answer: ______

6. Healthcare Re-engineering can be defined as

a. a variation of total quality management that seeks to improve patient care processes through benchmarking, use of statistical tools, and customer satisfaction data b. the radical redesign of the critical systems and processes used to produce, deliver and support patient care in order to achieve dramatic improvements in organizational performance within a short period of time c. a redesign of patient care so that hospital resources and personnel are organized around the patient d. a bottom up approach to quality improvement that focuses on sustained, incremental process improvement over time Answer: ______

7. Which of the following theories of motivation proposes that workers tend to be motivated when they desire a particular reward and believe that their effort will result in a level of performance that earns the reward?

a. Equity theory b. Expectancy theory c. Hierarchy of Needs theory d. Reinforcement theory Answer: ______

8. Each health care organization should have an ongoing and active risk management program designed to objectively evaluate the quality and appropriateness of clinical care as it relates to the chances of loss to the organization. Choose the correct ordering of the five accepted phases of the risk management process.

a. monitor and improve the program, identify loss, examine alternative techniques, choose the best technique for resolution, implement the technique b. identify loss, examine alternative techniques, choose the best technique for resolution, implement the technique, monitor and improve the program c. identify loss, choose the best technique for resolution, examine alternative techniques, implement the technique, monitor and improve the program d. monitor and improve the program, identify loss, choose the best technique for resolution, examine alternative techniques, implement the techniques e. monitor and improve the program, choose the best technique for resolution, examine alternative techniques, implement the technique, identify loss Answer: ______

9. Managers are individuals who plan, organize, direct, control and coordinate activities in order to move the organization toward:

a. higher profits b. greater social influence c. desired objectives d. economic stability Answer: ______

10. Which of the following actions would tend to increase cash?

a. An increase in Accounts Receivable b. A reduction in Retained Earnings c. A reduction in Accounts Payable d. A reduction in Supplies Inventory Answer: ______


This sample essay section contains two questions, which are examples, not actual questions on the exam. You will be asked to answer three of five essay questions on the exam.

The first question is intended to provide the candidates an opportunity to organize and express their thoughts and to demonstrate an awareness of the environment. Subject matter for this question will be drawn from current “cover stories” in leading healthcare publications. The following questions have been selected from the examination bank.

  • What will the healthcare delivery system look like during the first ten years of the 21st Century? In approximately 250 to 300 words, discuss the changes you envision happening by then.

The second question is intended to provide the candidates an opportunity to demonstrate a reasoned understanding of the practical ramifications of a current administrative issue or challenge. The following question has been selected from the examination bank:

  • Risk-bearing contracts are a new challenge for provider organizations becoming active in direct contracting in managed care. Discuss in 250-300 words, some of the risks involved in direct contracting by providers and how they can address this issue to insure viability of their contracts.

When taking the actual exam, please take a moment or two with each topic to organize your thoughts and present your response in an organized and cohesive fashion that will demonstrate your grasp and understanding of the issue.

In addition to factual correctness, the grading of these essays will take into account the following:

  • Was the essay well organized?
  • Was there a logical flow of ideas?
  • Did the answer demonstrate understanding of and insight into important healthcare concepts?
  • Are the points, arguments or opinions presented in the essay supported with facts and/or logic?


1. D     5. D       9.  C 2. B     6. B      10. D 3. B     7. B

4. C     8. B

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