Question 1

Third-party payers representing a _______ market share have _______ negotiation power to obtain lower prices for hospital services.

Accepted Answer

A)  small; greater 
B)  small; reduced 
C)  large; reduced 
D)  large; greater 
E)  both b and d 
A)  small; greater 
B)  small; reduced 
C)  large; reduced 
D)  large; greater 
E)  both b and d E

Question 2

According to the _______, new technology is most likely to be adopted by research and teaching hospitals first.

Accepted Answer

A)  quantity maximization model 
B)  quality maximization model 
C)  managerial expense preference model 
D)  quality/quantity maximization model 
E)  utility maximization model 
A)  quantity maximization model 
B)  quality maximization model 
C)  managerial expense preference model 
D)  quality/quantity maximization model 
E)  utility maximization model B

Question 3

The managerial expertise model helps to explain why executives of non-profit hospitals may be overcompensated.

Accepted Answer

A) True 
 B)False  True

Question 4

Most hospitals in the U.S. operate as for-profit firms.

Accepted Answer

A) True 
 B)False

Question 5

Continued hospital consolidations have led to diminished market concentration in most metropolitan market areas.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following hospital product characteristics has been shown to strongly affect consumer choice?

Accepted Answer

A)  Staff 
B)  Physical facilities 
C)  Convenience 
D)  Experience 
E)  All of the above 
A)  Staff 
B)  Physical facilities 
C)  Convenience 
D)  Experience 
E)  All of the above

Question 7

_______ occurs when changes to prices charged to payers changes as a compensating response to changes in administered prices of a different payer.

Accepted Answer

A)  Scale economies 
B)  Sunk cost 
C)  Cost-shifting 
D)  Moral hazard 
E)  Hospital services price inflation 
A)  Scale economies 
B)  Sunk cost 
C)  Cost-shifting 
D)  Moral hazard 
E)  Hospital services price inflation

Question 8

_______ relates to productivity or quality improvements observed over time irrespective of the quantity produced.

Accepted Answer

A)  Sunk costs 
B)  System affiliation 
C)  Scale economies 
D)  Scope economies 
E)  Learning-by-watching 
A)  Sunk costs 
B)  System affiliation 
C)  Scale economies 
D)  Scope economies 
E)  Learning-by-watching

Question 9

Certificates of need promote price competition amongst hospitals.

Accepted Answer

A) True 
 B)False

Question 10

Assume that there are 5 equally sized hospitals in a market area. If two of these hospitals decide to merge, what will be the increase in the Herfindahl-Hirschman index?

Accepted Answer

A)  2000 
B)  800 
C)  1600 
D)  2800 
E)  400 
A)  2000 
B)  800 
C)  1600 
D)  2800 
E)  400

Question 11

An increased HMO presence in insurance markets will likely increase premiums for consumers.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following accounts for the largest portion of hospital expenditures?

Accepted Answer

A)  Private insurance 
B)  Out-of-pocket 
C)  Government 
D)  Charity care 
E)  Other 
A)  Private insurance 
B)  Out-of-pocket 
C)  Government 
D)  Charity care 
E)  Other

Question 13

Demand for hospital services in the U.S. is considered to be _______.

Accepted Answer

A)  inelastic 
B)  elastic 
C)  unit elastic 
D)  income elastic 
E)  none of the above 
A)  inelastic 
B)  elastic 
C)  unit elastic 
D)  income elastic 
E)  none of the above

Question 14

Which of the following best explains why there is little evidence of cost differences between hospital ownership-types?

Accepted Answer

A)  Certificates of need 
B)  Consolidations 
C)  Increasing hospital occupancy rates 
D)  Physicians seeking to maximize their incomes 
E)  All of the above 
A)  Certificates of need 
B)  Consolidations 
C)  Increasing hospital occupancy rates 
D)  Physicians seeking to maximize their incomes 
E)  All of the above

Question 15

Which of the following reasons might serve as a barrier to entry within the hospital services industry?

Accepted Answer

A)  Scale economies 
B)  Standardized products 
C)  Certificate of need 
D)  Both a and c 
E)  All of the above 
A)  Scale economies 
B)  Standardized products 
C)  Certificate of need 
D)  Both a and c 
E)  All of the above

Third-party payers representing a _ market share have _ negotiation power to obtain lower prices for hospital services.

According to the _______, new technology is most likely to be adopted by research and teaching hospitals first.

The managerial expertise model helps to explain why executives of non-profit hospitals may be overcompensated.

Most hospitals in the U.S. operate as for-profit firms.

Continued hospital consolidations have led to diminished market concentration in most metropolitan market areas.

Which of the following hospital product characteristics has been shown to strongly affect consumer choice?

_______ occurs when changes to prices charged to payers changes as a compensating response to changes in administered prices of a different payer.

_______ relates to productivity or quality improvements observed over time irrespective of the quantity produced.

Certificates of need promote price competition amongst hospitals.

Assume that there are 5 equally sized hospitals in a market area. If two of these hospitals decide to merge, what will be the increase in the Herfindahl-Hirschman index?

An increased HMO presence in insurance markets will likely increase premiums for consumers.

Which of the following accounts for the largest portion of hospital expenditures?

Demand for hospital services in the U.S. is considered to be _______.

Which of the following best explains why there is little evidence of cost differences between hospital ownership-types?

Which of the following reasons might serve as a barrier to entry within the hospital services industry?

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 Pharmaceutical Industry

The Long-Term Care Industry

Health Insurance Reform

Filters

Exam 13: The Hospital Services Industry

Third-party payers representing a _______ market share have _______ negotiation power to obtain lower prices for hospital services.

According to the _______, new technology is most likely to be adopted by research and teaching hospitals first.

The managerial expertise model helps to explain why executives of non-profit hospitals may be overcompensated.

Most hospitals in the U.S. operate as for-profit firms.

Continued hospital consolidations have led to diminished market concentration in most metropolitan market areas.

Which of the following hospital product characteristics has been shown to strongly affect consumer choice?

_______ occurs when changes to prices charged to payers changes as a compensating response to changes in administered prices of a different payer.

_______ relates to productivity or quality improvements observed over time irrespective of the quantity produced.

Certificates of need promote price competition amongst hospitals.

Assume that there are 5 equally sized hospitals in a market area. If two of these hospitals decide to merge, what will be the increase in the Herfindahl-Hirschman index?

An increased HMO presence in insurance markets will likely increase premiums for consumers.

Which of the following accounts for the largest portion of hospital expenditures?

Demand for hospital services in the U.S. is considered to be _______.

Which of the following best explains why there is little evidence of cost differences between hospital ownership-types?

Which of the following reasons might serve as a barrier to entry within the hospital services industry?

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 Pharmaceutical Industry

The Long-Term Care Industry

Health Insurance Reform

Filters

Third-party payers representing a _ market share have _ negotiation power to obtain lower prices for hospital services.