Question 1

Which of the following best describes a typical nursing home?

Accepted Answer

A)  For-profit ownership with 200 beds 
B)  Non-profit ownership with 50 beds 
C)  For-profit ownership with 100 beds 
D)  For-profit ownership with 50 beds 
E)  Non-profit ownership with 100 beds 
A)  For-profit ownership with 200 beds 
B)  Non-profit ownership with 50 beds 
C)  For-profit ownership with 100 beds 
D)  For-profit ownership with 50 beds 
E)  Non-profit ownership with 100 beds C

Question 2

The market demand for medical services represents a _______, unlike the _______ for long-term care.

Accepted Answer

A)  supplier-induced demand; derived demand 
B)  basic demand; derived demand 
C)  derived demand; basic demand 
D)  basic demand; supplier-induced demand 
E)  derived demand; supplier-induced demand 
A)  supplier-induced demand; derived demand 
B)  basic demand; derived demand 
C)  derived demand; basic demand 
D)  basic demand; supplier-induced demand 
E)  derived demand; supplier-induced demand C

Question 3

Prospective payment systems _______ costs, _______ quality, and result in _______ severe patient case-mixes.

Accepted Answer

A)  raise; diminish; more 
B)  raise; improve; less 
C)  decrease; improve; more 
D)  raise; improve; more 
E)  decrease; diminish; less 
A)  raise; diminish; more 
B)  raise; improve; less 
C)  decrease; improve; more 
D)  raise; improve; more 
E)  decrease; diminish; less E

Question 4

Which of the following has been shown to discourage competition in the long-term care industry?

Accepted Answer

A)  Certificates of need 
B)  Sunk costs 
C)  Scale economies 
D)  Predominance of Medicaid 
E)  None of the above 
A)  Certificates of need 
B)  Sunk costs 
C)  Scale economies 
D)  Predominance of Medicaid 
E)  None of the above

Question 5

Barriers to entry in the nursing home industry are relatively low.

Accepted Answer

A) True 
 B)False

Question 6

Scale economies allow long-term care facilities to substantially decrease costs with only slight quality reductions.

Accepted Answer

A) True 
 B)False

Question 7

What is the largest purchaser of nursing home services?

Accepted Answer

A)  Medicare 
B)  Medicaid 
C)  Private insurance 
D)  Out-of-pocket 
E)  Other 
A)  Medicare 
B)  Medicaid 
C)  Private insurance 
D)  Out-of-pocket 
E)  Other

Question 8

Which of the following is a provider of long-term care?

Accepted Answer

A)  For-profit hospitals 
B)  Assisted living facilities 
C)  Senior centers 
D)  Non-profit hospitals 
E)  Both b and c 
A)  For-profit hospitals 
B)  Assisted living facilities 
C)  Senior centers 
D)  Non-profit hospitals 
E)  Both b and c

Question 9

The market demand for long-term care represents a derived demand.

Accepted Answer

A) True 
 B)False

Question 10

According to the Scanlon model, a decrease in Medicaid reimbursement rates will lead to _______.

Accepted Answer

A)  increase in the amount of privately-insured patients served 
B)  increase in the amount of Medicaid patients served 
C)  decrease in the price charged to privately-insured patients 
D)  no changes in the patient mix served 
E)  increase in the price charged to privately-insured patients 
A)  increase in the amount of privately-insured patients served 
B)  increase in the amount of Medicaid patients served 
C)  decrease in the price charged to privately-insured patients 
D)  no changes in the patient mix served 
E)  increase in the price charged to privately-insured patients

Question 11

Prospective payment systems raise costs, improve quality, and result in more severe patient case-mixes.

Accepted Answer

A) True 
 B)False

Question 12

Retrospective payment systems _______ costs, _______ quality, and result in _______ severe patient case-mixes.

Accepted Answer

A)  raise; diminish; more 
B)  raise; improve; less 
C)  decrease; improve; more 
D)  raise; improve; more 
E)  decrease; diminish; less 
A)  raise; diminish; more 
B)  raise; improve; less 
C)  decrease; improve; more 
D)  raise; improve; more 
E)  decrease; diminish; less

Question 13

Which of the following are reasons why larger amounts of the population fail to purchase long-term care insurance?

Accepted Answer

A)  Adverse selection 
B)  Moral hazard 
C)  Intertemporal risk 
D)  Both a and b 
E)  All of the above 
A)  Adverse selection 
B)  Moral hazard 
C)  Intertemporal risk 
D)  Both a and b 
E)  All of the above

Question 14

Which of the following might cause an increase in the demand for long-term care?

Accepted Answer

A)  Aging population 
B)  Increased prevalence of HIV 
C)  Advances in medical technology 
D)  Increased utilization of primary care 
E)  Increased health 
A)  Aging population 
B)  Increased prevalence of HIV 
C)  Advances in medical technology 
D)  Increased utilization of primary care 
E)  Increased health

Question 15

Evidence suggests that nursing homes can substantially reduce their average total cost of production by increasing the amount of patients served due to substantial economies of scale.

Accepted Answer

A) True 
 B)False

Which of the following best describes a typical nursing home?

The market demand for medical services represents a _, unlike the _ for long-term care.

Prospective payment systems ___ costs, _ quality, and result in _____ severe patient case-mixes.

Which of the following has been shown to discourage competition in the long-term care industry?

Barriers to entry in the nursing home industry are relatively low.

Scale economies allow long-term care facilities to substantially decrease costs with only slight quality reductions.

What is the largest purchaser of nursing home services?

Which of the following is a provider of long-term care?

The market demand for long-term care represents a derived demand.

According to the Scanlon model, a decrease in Medicaid reimbursement rates will lead to _______.

Prospective payment systems raise costs, improve quality, and result in more severe patient case-mixes.

Retrospective payment systems ___ costs, _ quality, and result in _____ severe patient case-mixes.

Which of the following are reasons why larger amounts of the population fail to purchase long-term care insurance?

Which of the following might cause an increase in the demand for long-term care?

Evidence suggests that nursing homes can substantially reduce their average total cost of production by increasing the amount of patients served due to substantial economies of scale.

Introduction

Health and Medical Care: an Economic Perspective

Cost and Benefit Analysis

Health Care Systems and Institutions

The Demand for Medical Care

The Demand for Medical Insurance: Traditional and Managed Care Coverage

Medical Care Production and Costs

Structure, Conduct, Performance, and Market Analysis

Government, Health, and Medical Care

Government As Health Insurer

The Private Health Insurance Industry

The Physician Services Industry

The Hospital Services Industry

The Pharmaceutical Industry

Health Insurance Reform

Filters

Exam 15: The Long-Term Care Industry

Which of the following best describes a typical nursing home?

The market demand for medical services represents a _______, unlike the _______ for long-term care.

Prospective payment systems _______ costs, _______ quality, and result in _______ severe patient case-mixes.

Which of the following has been shown to discourage competition in the long-term care industry?

Barriers to entry in the nursing home industry are relatively low.

Scale economies allow long-term care facilities to substantially decrease costs with only slight quality reductions.

What is the largest purchaser of nursing home services?

Which of the following is a provider of long-term care?

The market demand for long-term care represents a derived demand.

According to the Scanlon model, a decrease in Medicaid reimbursement rates will lead to _______.

Prospective payment systems raise costs, improve quality, and result in more severe patient case-mixes.

Retrospective payment systems _______ costs, _______ quality, and result in _______ severe patient case-mixes.

Which of the following are reasons why larger amounts of the population fail to purchase long-term care insurance?

Which of the following might cause an increase in the demand for long-term care?

Evidence suggests that nursing homes can substantially reduce their average total cost of production by increasing the amount of patients served due to substantial economies of scale.

Introduction

Health and Medical Care: an Economic Perspective

Cost and Benefit Analysis

Health Care Systems and Institutions

The Demand for Medical Care

The Demand for Medical Insurance: Traditional and Managed Care Coverage

Medical Care Production and Costs

Structure, Conduct, Performance, and Market Analysis

Government, Health, and Medical Care

Government As Health Insurer

The Private Health Insurance Industry

The Physician Services Industry

The Hospital Services Industry

The Pharmaceutical Industry

Health Insurance Reform

Filters

The market demand for medical services represents a _, unlike the _ for long-term care.

Prospective payment systems ___ costs, _ quality, and result in _____ severe patient case-mixes.

Retrospective payment systems ___ costs, _ quality, and result in _____ severe patient case-mixes.