ASHE Financial Stewardship 3

Question 1

A healthcare facility has a Facility Condition Index (FCI) of 0.22. How should this be interpreted and what action does it suggest?

Accepted Answer

Poor condition — significant capital renewal or replacement planning is urgent

Answer

An FCI of 0.22 (above 0.10) indicates poor facility condition, signaling that deferred maintenance costs are high relative to asset value and urgent capital planning is needed.

Question 2

Which life-cycle cost component is most frequently underestimated when budgeting for new medical equipment?

Accepted Answer

Ongoing maintenance, service contracts, and end-of-life disposal costs

Answer

Ongoing maintenance, service contracts, and disposal costs accumulate over the equipment's full life and are most often underestimated in initial budget projections.

Question 3

A facilities department wants to benchmark its custodial costs. Which industry standard metric is most appropriate for this comparison?

Accepted Answer

Cost per cleanable square foot per year

Answer

Custodial cost per cleanable square foot per year is the standard industry benchmark for comparing housekeeping and environmental services expenses across facilities.

Question 4

When a hospital negotiates a multi-year service contract for elevator maintenance, what financial risk management strategy does this represent?

Accepted Answer

Risk transfer by shifting maintenance liability to the vendor

Answer

A multi-year service contract transfers the financial risk of unexpected elevator failures and repair costs from the hospital to the maintenance vendor.

Question 5

Which budget type best supports a facilities department that needs flexibility to respond to unpredictable emergency repairs throughout the fiscal year?

Accepted Answer

Incremental budget with a dedicated contingency reserve

Answer

An incremental budget that includes a dedicated contingency reserve provides the financial flexibility needed to fund unpredictable emergency repair costs.

(ASHE) American Society for Health Care Engineering Certified Practice Test

(ASHE) American Society for Health Care Engineering Certified Practice Test

ASHE Financial Stewardship 3