Question 1

One would expect that price elasticity will be greater for __________ than for __________.

Accepted Answer

A)  medical school tuition; medical school entrance exam preparation course tuition. 
B)  appendectomies; dental exams. 
C)  tonsillectomies; flu shots. 
D)  medical school entrance exam preparation course tuition; medical school tuition. 
E)  emergency room care; an annual mammogram. 
A)  medical school tuition; medical school entrance exam preparation course tuition. 
B)  appendectomies; dental exams. 
C)  tonsillectomies; flu shots. 
D)  medical school entrance exam preparation course tuition; medical school tuition. 
E)  emergency room care; an annual mammogram. D

Question 2

Strict rules about the conduct of physicians are rooted in the agency relationship between doctor and patient.

Accepted Answer

A) True 
 B)False  True

Question 3

Clinical pathways based on evidence-based medicine are often cited as the wave of the future in patient care. Is it likely that in the near future payments will only be approved when evidence-based medical efficacy of the selected treatment can be proven?

Accepted Answer

Physicians will likely oppose the development of clinical pathways and evidence-based medicine as "cookbook" medicine. The goal of evidence-based medicine is to supplement, though not to completely replace, physician treatment and training norms with cost and outcome evidence from the scientifically rigorous clinical studies.

Question 4

It is common for many fertility physicians to run their own individual offices where they see patients. It is also common for many of the same fertility physicians not to set up their own surgical and lab facilities, necessary for performing in-vitro fertilization (IVF), and other infertility treatments and procedures. Rather, many of them choose to share one well equipped facility. Which of the following must be true about the business organization in this particular sector?

Accepted Answer

A)  Substantial economies of scale are realized by each fertility physician who runs his/her own individual office to see the patients. 
B)  Substantial economies of scale are realized by each fertility physician who runs his/her own IVF lab / surgical facility. 
C)  Substantial economies of scale are realized by those fertility physicians who collectively share one IVF lab / surgical facility. 
D)  Each fertility physician who runs his/her own individual office to see the patients can significantly increase their revenue if opting instead to have one large group practice with other fertility physicians. 
E)  Each fertility physician who collectively shares one IVF lab / surgical facility with other fertility physicians can significantly increase their revenue if opting instead to set up such facility of their own. 
A)  Substantial economies of scale are realized by each fertility physician who runs his/her own individual office to see the patients. 
B)  Substantial economies of scale are realized by each fertility physician who runs his/her own IVF lab / surgical facility. 
C)  Substantial economies of scale are realized by those fertility physicians who collectively share one IVF lab / surgical facility. 
D)  Each fertility physician who runs his/her own individual office to see the patients can significantly increase their revenue if opting instead to have one large group practice with other fertility physicians. 
E)  Each fertility physician who collectively shares one IVF lab / surgical facility with other fertility physicians can significantly increase their revenue if opting instead to set up such facility of their own.

Question 5

For physicians in an individual practice, foregoing average higher earnings of physicians in group practice represents a rational economic decision.

Accepted Answer

A) True 
 B)False

Question 6

Explain why the expansion of physician supply at the level which maintained a ratio of 1.33 physicians per thousand population and allowed for population growth rate of 1% per year was criticized by the late 1960s as causing a shortage of physicians.

Accepted Answer

Though the 1% expansion allowed for popu

Question 7

Charging higher premiums to women of child bearing age than to men of the same age is an example of price discrimination.

Accepted Answer

A) True 
 B)False

Question 8

An HMO may monitor the diagnoses and treatments of participating physicians to determine how closely physicians follow observed norms of care or designated clinical pathways. This is a means of measuring

Accepted Answer

A)  quality. 
B)  fraud. 
C)  billing errors. 
D)  accounting compliance. 
E)  efficacy of treatments. 
A)  quality. 
B)  fraud. 
C)  billing errors. 
D)  accounting compliance. 
E)  efficacy of treatments.

Question 9

The Stark laws (1989 and 1993) ban physicians from referring patients to facilities in which the physician has a financial interest, such as a specialty hospital, radiation lab, or clinical lab. The Stark laws address

Accepted Answer

A)  the problem of adverse selection. 
B)  the high standards imposed on the agency relationship between physician and patient. 
C)  moral hazard on the part of doctors. 
D)  induced demand by physicians. 
E)  unethical behavior by patients. 
A)  the problem of adverse selection. 
B)  the high standards imposed on the agency relationship between physician and patient. 
C)  moral hazard on the part of doctors. 
D)  induced demand by physicians. 
E)  unethical behavior by patients.

Question 10

When assessing the market demand and supply of physicians, economists look at all of the following except

Accepted Answer

A)  trends in the number of non-M.D. physicians, chiropractors, and physician substitutes. 
B)  trends in the retirement rates of physicians. 
C)  population growth. 
D)  academic publication records of practicing physicians. 
E)  the number of students applying to medical schools. 
A)  trends in the number of non-M.D. physicians, chiropractors, and physician substitutes. 
B)  trends in the retirement rates of physicians. 
C)  population growth. 
D)  academic publication records of practicing physicians. 
E)  the number of students applying to medical schools.

Question 11

One of the best ways to learn how the complicated healthcare system in the U.S. works is to

Accepted Answer

A)  examine the legal basis of the provision of healthcare in the U.S. 
B)  follow the trail of money and trace the self-interest of all the parties involved. 
C)  understand how the goal of serving public interests drives the actions of all the parties involved. 
D)  carefully read and analyze healthcare-related reports and arguments in news media. 
E)  stay up-to-date with the latest medical research findings. 
A)  examine the legal basis of the provision of healthcare in the U.S. 
B)  follow the trail of money and trace the self-interest of all the parties involved. 
C)  understand how the goal of serving public interests drives the actions of all the parties involved. 
D)  carefully read and analyze healthcare-related reports and arguments in news media. 
E)  stay up-to-date with the latest medical research findings.

Question 12

A local dentist provides a deep discount for dental care to his elderly patients; a 10% discount to the uninsured patients; but is able to charge substantially more than "usual, customary and reasonable charges" to all other patients. It is an example of price discrimination and is an informal way for patients in wealthier circumstances to subsidize patients with less financial resources.

Accepted Answer

A) True 
 B)False

Question 13

According to the Stark law, physician self-referrals are illegal. The law allows an In-Office Ancillary Services Exception, however, when the physician can refer the patient for necessary testing on equipment located directly in the physician's office, such as diagnostic imaging equipment. Discuss your opinion about the impact of this exception on all the parties involved: patients, physicians, insurers, and the society.

Accepted Answer

For patient. Increased convenience (same

Question 14

If the amount billed to a patient increases because the surgeon encountered difficulties during surgery which required additional medical interventions, this is an example of price discrimination.

Accepted Answer

A) True 
 B)False

Question 15

Economies of scale mean that a group physician practice is likely to return more income to physicians than an individual practice.

Accepted Answer

A) True 
 B)False

Question 16

If a physician receives a bonus for referring a patient for cardiac surgery to a specialty hospital nearby his office,

Accepted Answer

A)  the patient has violated the Patient Protection and Affordable Care Act. 
B)  the physician has violated the Stark law. 
C)  the patient will probably receive better care than if he had gone to another hospital. 
D)  the patient's insurance company will always refuse to pay the bill. 
E)  the patient's insurance company will probably investigate price discrimination. 
A)  the patient has violated the Patient Protection and Affordable Care Act. 
B)  the physician has violated the Stark law. 
C)  the patient will probably receive better care than if he had gone to another hospital. 
D)  the patient's insurance company will always refuse to pay the bill. 
E)  the patient's insurance company will probably investigate price discrimination.

Question 17

Two events that were most effective in bringing about licensure of physicians were

Accepted Answer

A)  increases in the number of hospitals and development of effective anesthesia. 
B)  influx of foreign physicians and increase in medical school enrollees. 
C)  development of effective anesthesia and antiseptics. 
D)  increases in demand for physicians and increases in the number of nurses. 
E)  increases in sepsis and increases in the number of physician assistants. 
A)  increases in the number of hospitals and development of effective anesthesia. 
B)  influx of foreign physicians and increase in medical school enrollees. 
C)  development of effective anesthesia and antiseptics. 
D)  increases in demand for physicians and increases in the number of nurses. 
E)  increases in sepsis and increases in the number of physician assistants.

Question 18

In the absence of empirical evidence, professional norms in treatment of certain medical conditions are observed to prevail. Differences from one geographic area to another are found. This is an example of

Accepted Answer

A)  small area variation. 
B)  price discrimination. 
C)  adverse selection. 
D)  moral hazard. 
E)  large area variation. 
A)  small area variation. 
B)  price discrimination. 
C)  adverse selection. 
D)  moral hazard. 
E)  large area variation.

Question 19

Explain why government incentives to increase the number of physicians by increasing the number of medical graduates in the U.S. may take years to have any effect. Be sure to discuss the typical training and career cycle of a physician.

Accepted Answer

Increasing the number of students in med

Question 20

The total cost of attending medical school is covered by payments from all of the following sources except

Accepted Answer

A)  tuition payments from students. 
B)  patient fees. 
C)  Stark law. 
D)  government subsidies or donations to medical schools. 
E)  National Institutes of Health research funding. 
A)  tuition payments from students. 
B)  patient fees. 
C)  Stark law. 
D)  government subsidies or donations to medical schools. 
E)  National Institutes of Health research funding.

One would expect that price elasticity will be greater for than for .

Strict rules about the conduct of physicians are rooted in the agency relationship between doctor and patient.

Clinical pathways based on evidence-based medicine are often cited as the wave of the future in patient care. Is it likely that in the near future payments will only be approved when evidence-based medical efficacy of the selected treatment can be proven?

For physicians in an individual practice, foregoing average higher earnings of physicians in group practice represents a rational economic decision.

Explain why the expansion of physician supply at the level which maintained a ratio of 1.33 physicians per thousand population and allowed for population growth rate of 1% per year was criticized by the late 1960s as causing a shortage of physicians.

Charging higher premiums to women of child bearing age than to men of the same age is an example of price discrimination.

An HMO may monitor the diagnoses and treatments of participating physicians to determine how closely physicians follow observed norms of care or designated clinical pathways. This is a means of measuring

The Stark laws (1989 and 1993) ban physicians from referring patients to facilities in which the physician has a financial interest, such as a specialty hospital, radiation lab, or clinical lab. The Stark laws address

When assessing the market demand and supply of physicians, economists look at all of the following except

One of the best ways to learn how the complicated healthcare system in the U.S. works is to

If the amount billed to a patient increases because the surgeon encountered difficulties during surgery which required additional medical interventions, this is an example of price discrimination.

Economies of scale mean that a group physician practice is likely to return more income to physicians than an individual practice.

If a physician receives a bonus for referring a patient for cardiac surgery to a specialty hospital nearby his office,

Two events that were most effective in bringing about licensure of physicians were

In the absence of empirical evidence, professional norms in treatment of certain medical conditions are observed to prevail. Differences from one geographic area to another are found. This is an example of

Explain why government incentives to increase the number of physicians by increasing the number of medical graduates in the U.S. may take years to have any effect. Be sure to discuss the typical training and career cycle of a physician.

The total cost of attending medical school is covered by payments from all of the following sources except

Choices: Money, Medicine, and Health

Demand and Supply

Cost-Benefit and Cost-Effectiveness Analysis

Health Insurance: Financing Medical Care

Insurance Contracts and Managed Care

Physicians

Hospitals

Management and Regulations of Hospital Costs

Long-Term Care

Pharmaceuticals

Financing and Ownership of Health Care Providers

Macroeconomics and Medical Care

The Role of Government and Public Goods

History, Demography, and the Growth of Modern Medicine

International Comparisons of Health and Health Expenditures

Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010

Value for Money in the Future of Health Care

Filters

Exam 7: Medical Education, Organization, and Business Practices

One would expect that price elasticity will be greater for __________ than for __________.

Strict rules about the conduct of physicians are rooted in the agency relationship between doctor and patient.

Clinical pathways based on evidence-based medicine are often cited as the wave of the future in patient care. Is it likely that in the near future payments will only be approved when evidence-based medical efficacy of the selected treatment can be proven?

For physicians in an individual practice, foregoing average higher earnings of physicians in group practice represents a rational economic decision.

Explain why the expansion of physician supply at the level which maintained a ratio of 1.33 physicians per thousand population and allowed for population growth rate of 1% per year was criticized by the late 1960s as causing a shortage of physicians.

Charging higher premiums to women of child bearing age than to men of the same age is an example of price discrimination.

An HMO may monitor the diagnoses and treatments of participating physicians to determine how closely physicians follow observed norms of care or designated clinical pathways. This is a means of measuring

The Stark laws (1989 and 1993) ban physicians from referring patients to facilities in which the physician has a financial interest, such as a specialty hospital, radiation lab, or clinical lab. The Stark laws address

When assessing the market demand and supply of physicians, economists look at all of the following except

One of the best ways to learn how the complicated healthcare system in the U.S. works is to

If the amount billed to a patient increases because the surgeon encountered difficulties during surgery which required additional medical interventions, this is an example of price discrimination.

Economies of scale mean that a group physician practice is likely to return more income to physicians than an individual practice.

If a physician receives a bonus for referring a patient for cardiac surgery to a specialty hospital nearby his office,

Two events that were most effective in bringing about licensure of physicians were

In the absence of empirical evidence, professional norms in treatment of certain medical conditions are observed to prevail. Differences from one geographic area to another are found. This is an example of

Explain why government incentives to increase the number of physicians by increasing the number of medical graduates in the U.S. may take years to have any effect. Be sure to discuss the typical training and career cycle of a physician.

The total cost of attending medical school is covered by payments from all of the following sources except

Choices: Money, Medicine, and Health

Demand and Supply

Cost-Benefit and Cost-Effectiveness Analysis

Health Insurance: Financing Medical Care

Insurance Contracts and Managed Care

Physicians

Hospitals

Management and Regulations of Hospital Costs

Long-Term Care

Pharmaceuticals

Financing and Ownership of Health Care Providers

Macroeconomics and Medical Care

The Role of Government and Public Goods

History, Demography, and the Growth of Modern Medicine

International Comparisons of Health and Health Expenditures

Economic Evaluation of Health Policy: The Patient Protection and Affordable Care Act of 2010

Value for Money in the Future of Health Care

Filters

One would expect that price elasticity will be greater for than for .