ASHE Financial Stewardship in Healthcare 3

Question 1

Which procurement method requires a healthcare facility to solicit competitive bids and is typically mandatory above a certain dollar threshold for public institutions?

Accepted Answer

Formal competitive bidding (IFB/RFP)

Answer

Formal competitive bidding through Invitation for Bid (IFB) or Request for Proposal (RFP) is legally required above set thresholds at most public healthcare institutions.

Question 2

A healthcare facility manager is comparing two HVAC systems. System A costs $200,000 with $10,000/year operating costs. System B costs $150,000 with $18,000/year operating costs. Using a 10-year life cycle, which is more cost-effective?

Accepted Answer

System A ($300,000 total)

Answer

System A totals $200,000 + ($10,000 × 10) = $300,000; System B totals $150,000 + ($18,000 × 10) = $330,000, making System A less expensive over 10 years.

Question 3

What does the term 'capitalization threshold' mean in healthcare facility asset management?

Accepted Answer

The minimum cost at which an expenditure is recorded as a capital asset rather than an expense

Answer

The capitalization threshold is the minimum dollar amount at which a purchase is classified as a capital asset and depreciated over its useful life rather than expensed immediately.

Question 4

Which regulatory requirement significantly impacts the financial planning of healthcare facility engineers related to environmental compliance?

Accepted Answer

EPA Resource Conservation and Recovery Act (RCRA) for hazardous waste management

Answer

RCRA governs hazardous waste disposal and imposes significant costs and liabilities on healthcare facilities for proper handling and disposal of medical and chemical waste.

Question 5

A healthcare facility's utility costs represent 30% of total operating expenses. The facility manager implements an energy conservation program projected to reduce utility costs by 15%. What percentage of total operating expenses will be saved?

Accepted Answer

4.5%

Answer

Savings = 30% (utility share) × 15% (reduction) = 4.5% of total operating expenses.

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

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

ASHE Financial Stewardship in Healthcare 3