ASHE Financial Stewardship in Healthcare 5

Question 1

A facility manager must replace a chiller with a 20-year life expectancy costing $400,000. Using straight-line depreciation with no salvage value, what is the annual depreciation expense?

Accepted Answer

$20,000

Answer

Straight-line depreciation = $400,000 ÷ 20 years = $20,000 per year.

Question 2

Which financial risk management tool transfers the financial consequences of unexpected equipment failures or property damage to a third party?

Accepted Answer

Insurance coverage (property and casualty)

Answer

Property and casualty insurance transfers the financial risk of unexpected losses from equipment failure, fire, flood, or other events to the insurance carrier.

Question 3

In healthcare facility financial planning, what is the primary purpose of a 'Facilities Master Plan'?

Accepted Answer

To provide a long-range roadmap aligning physical facility investments with the organization's strategic goals

Answer

A Facilities Master Plan is a strategic document projecting capital needs and facility changes over 10-20 years, ensuring physical resources support organizational goals.

Question 4

When a healthcare facility issues tax-exempt municipal bonds to finance capital construction, what is the primary financial advantage?

Accepted Answer

Investors accept lower interest rates because bond income is exempt from federal taxes, reducing the facility's borrowing cost

Answer

Tax-exempt status allows nonprofit healthcare organizations to borrow at below-market rates because investors accept lower yields in exchange for tax-free income.

Question 5

A healthcare facility is considering outsourcing its housekeeping and groundskeeping services. Which financial analysis should be performed to make this decision?

Accepted Answer

Make-or-Buy (Insource vs. Outsource) Cost Analysis

Answer

A Make-or-Buy analysis compares the total cost of performing services in-house against the total cost of contracting them out, including all direct and indirect costs.

(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 5