Question 1

Using the physician-control model to explain hospital behavior leads to which of the following conclusions?

Accepted Answer

A)  Other medical inputs tend to be over used to maximize physicians' productivity. 
B)  The use of operating rooms will be maximized with little excess capacity. 
C)  Physicians will strive to utilize the nursing staff efficiently. 
D)  All investment decisions will be based on optimal resource use. 
E)  All of the above are conclusions of the physician-control model. 
A)  Other medical inputs tend to be over used to maximize physicians' productivity. 
B)  The use of operating rooms will be maximized with little excess capacity. 
C)  Physicians will strive to utilize the nursing staff efficiently. 
D)  All investment decisions will be based on optimal resource use. 
E)  All of the above are conclusions of the physician-control model. A

Question 2

Congressional studies report that Medicare payments fall 11 percent below the cost of treating patients while private insurance patients pay 29 percent more than cost. This phenomenon is called

Accepted Answer

A)  price discrimination. 
B)  the Medigap. 
C)  cost-shifting. 
D)  cost-plus pricing. 
E)  revenue enhancing. 
A)  price discrimination. 
B)  the Medigap. 
C)  cost-shifting. 
D)  cost-plus pricing. 
E)  revenue enhancing. C

Question 3

In the 19th century hospitals had notorious reputations-questionable places to visit, risky places to stay. What advances changed all this?

Accepted Answer

A)  Development of the germ theory of disease. 
B)  Advances in medical technology. 
C)  Availability of health insurance to pay the bills. 
D)  All of the above. 
A)  Development of the germ theory of disease. 
B)  Advances in medical technology. 
C)  Availability of health insurance to pay the bills. 
D)  All of the above. D

Question 4

The dominant factor affecting medical care delivery and finance in the 1990s was

Accepted Answer

A)  the Hill-Burton Act. 
B)  prospective payment for hospitals. 
C)  creation of Medicare and Medicaid. 
D)  the explosive growth of managed care. 
E)  ERISA. 
A)  the Hill-Burton Act. 
B)  prospective payment for hospitals. 
C)  creation of Medicare and Medicaid. 
D)  the explosive growth of managed care. 
E)  ERISA.

Question 5

Horizontal integration allows firms to do all of the following except

Accepted Answer

A)  take advantage of cost savings due to economies of scale. 
B)  reduce administrative costs. 
C)  create brand identity. 
D)  fully integrate with primary care clinics and acute care nursing facilities. 
A)  take advantage of cost savings due to economies of scale. 
B)  reduce administrative costs. 
C)  create brand identity. 
D)  fully integrate with primary care clinics and acute care nursing facilities.

Question 6

The merger of two community hospitals located in the same geographic market is called

Accepted Answer

A)  vertical integration. 
B)  horizontal integration. 
C)  a leveraged buyout. 
D)  a conglomerate merger. 
E)  a real shame since one of the hospitals will likely close. 
A)  vertical integration. 
B)  horizontal integration. 
C)  a leveraged buyout. 
D)  a conglomerate merger. 
E)  a real shame since one of the hospitals will likely close.

Question 7

The predominate organizational form for U.S. hospitals is not-for-profit. Why?

Accepted Answer

A)  The profit motive corrupts human behavior. 
B)  For-profit hospitals do not provide charity care. 
C)  Private not-for-profit hospitals engage in most of the medical research. 
D)  The not-for-profit form provides the most benefits to physicians. 
E)  All of the above. 
A)  The profit motive corrupts human behavior. 
B)  For-profit hospitals do not provide charity care. 
C)  Private not-for-profit hospitals engage in most of the medical research. 
D)  The not-for-profit form provides the most benefits to physicians. 
E)  All of the above.

Question 8

Which of the following statements is true concerning the trend in hospital care between in-patient and out-patient services since the mid-1980s?

Accepted Answer

A)  Both have been declining. 
B)  Out-patient services have been static while in-patient services have been declining. 
C)  Out-patient services have increased substantially because admissions are down. 
D)  Both have been growing. 
E)  There has been no noticeable trend in either in-patient or outpatient services. 
A)  Both have been declining. 
B)  Out-patient services have been static while in-patient services have been declining. 
C)  Out-patient services have increased substantially because admissions are down. 
D)  Both have been growing. 
E)  There has been no noticeable trend in either in-patient or outpatient services.

Question 9

Economies of scale exist when

Accepted Answer

A)  long-run average costs decline as output increases. 
B)  long-run average costs are constant. 
C)  long-run average costs increase as output increases. 
D)  short-run average costs decline. 
E)  short-run average costs increase. 
A)  long-run average costs decline as output increases. 
B)  long-run average costs are constant. 
C)  long-run average costs increase as output increases. 
D)  short-run average costs decline. 
E)  short-run average costs increase.

Question 10

The dominant factor affecting medical care delivery and finance in the 1980s was

Accepted Answer

A)  the Hill-Burton Act. 
B)  prospective payment for hospitals. 
C)  creation of Medicare and Medicaid. 
D)  the explosive growth of managed care. 
E)  ERISA. 
A)  the Hill-Burton Act. 
B)  prospective payment for hospitals. 
C)  creation of Medicare and Medicaid. 
D)  the explosive growth of managed care. 
E)  ERISA.

Question 11

The dominant factor affecting medical care delivery and finance in the 1960s was

Accepted Answer

A)  the Hill-Burton Act. 
B)  prospective payment for hospitals. 
C)  the creation of Medicare and Medicaid. 
D)  the explosive growth of managed care. 
E)  the passage of ERISA. 
A)  the Hill-Burton Act. 
B)  prospective payment for hospitals. 
C)  the creation of Medicare and Medicaid. 
D)  the explosive growth of managed care. 
E)  the passage of ERISA.

Question 12

This study was the catalyst for the early 20th century reform of medical education in the United States. What was it?

Accepted Answer

A)  Coolidge Commission. 
B)  Hill-Burton Committee. 
C)  Mangrum Report. 
D)  Flexner Report. 
E)  Kaiser Foundation Study. 
A)  Coolidge Commission. 
B)  Hill-Burton Committee. 
C)  Mangrum Report. 
D)  Flexner Report. 
E)  Kaiser Foundation Study.

Question 13

Consolidation activity in the hospital industry

Accepted Answer

A)  has slowed due to government regulations. 
B)  has created a large number of nationwide for-profit hospital chains. 
C)  has occurred almost exclusively at the local level. 
D)  occurs for same reasons that cause consolidation in other industries. 
A)  has slowed due to government regulations. 
B)  has created a large number of nationwide for-profit hospital chains. 
C)  has occurred almost exclusively at the local level. 
D)  occurs for same reasons that cause consolidation in other industries.

Using the physician-control model to explain hospital behavior leads to which of the following conclusions?

Congressional studies report that Medicare payments fall 11 percent below the cost of treating patients while private insurance patients pay 29 percent more than cost. This phenomenon is called

In the 19^th century hospitals had notorious reputations-questionable places to visit, risky places to stay. What advances changed all this?

The dominant factor affecting medical care delivery and finance in the 1990s was

Horizontal integration allows firms to do all of the following except

The merger of two community hospitals located in the same geographic market is called

The predominate organizational form for U.S. hospitals is not-for-profit. Why?

Which of the following statements is true concerning the trend in hospital care between in-patient and out-patient services since the mid-1980s?

Economies of scale exist when

The dominant factor affecting medical care delivery and finance in the 1980s was

The dominant factor affecting medical care delivery and finance in the 1960s was

This study was the catalyst for the early 20^th century reform of medical education in the United States. What was it?

Consolidation activity in the hospital industry

US Medical Care: an Uncertain Future

Using Economics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The Demand for Health and Medical Care

Population Health

The Market for Health Insurance

Managed Care

The Physicians Services Market

The Market for Pharmaceuticals

Medicare

Medicaid

Medical Care Systems Worldwide

Filters

Exam 10: The Hospital Services Market

Using the physician-control model to explain hospital behavior leads to which of the following conclusions?

Congressional studies report that Medicare payments fall 11 percent below the cost of treating patients while private insurance patients pay 29 percent more than cost. This phenomenon is called

In the 19th century hospitals had notorious reputations-questionable places to visit, risky places to stay. What advances changed all this?

The dominant factor affecting medical care delivery and finance in the 1990s was

Horizontal integration allows firms to do all of the following except

The merger of two community hospitals located in the same geographic market is called

The predominate organizational form for U.S. hospitals is not-for-profit. Why?

Which of the following statements is true concerning the trend in hospital care between in-patient and out-patient services since the mid-1980s?

Economies of scale exist when

The dominant factor affecting medical care delivery and finance in the 1980s was

The dominant factor affecting medical care delivery and finance in the 1960s was

This study was the catalyst for the early 20th century reform of medical education in the United States. What was it?

Consolidation activity in the hospital industry

US Medical Care: an Uncertain Future

Using Economics to Study Health Care Issues

Analyzing Medical Care Markets

Economic Evaluation in Health Care

The Demand for Health and Medical Care

Population Health

The Market for Health Insurance

Managed Care

The Physicians Services Market

The Market for Pharmaceuticals

Medicare

Medicaid

Medical Care Systems Worldwide

Filters

In the 19^th century hospitals had notorious reputations-questionable places to visit, risky places to stay. What advances changed all this?

This study was the catalyst for the early 20^th century reform of medical education in the United States. What was it?