MHA 707 Exam C Questions and Answers
with Verified Solutions | Latest Updated 2026
What is "asymmetry of •Physician vs. patient (vs. 3rd Party payer)
information"?
Why is it important in HC?
What is "non-marketability of risk"? inherent if medicine and medical practice
Health is not a marketable product, that is,
it
cannot be exchanged between consumers
Moral Hazard behaving differently when you know
someone else
is taking the risk (Induced demand)
Adverse Selection the sicker people likely want more
insurance (the
healthier, less)
pooling of risk sharing risk proportionately among many is
a basic
insurance
concept
National Health Expenditure •Provide official estimates of health care
Accounts (NHEA) spending
in the United States and Measures health
care
consumption and health care investment
,National Health Expenditure National Health Expenditures (NHE),
Accounts (NHEA) produce: Health
Consumption Expenditures (HCE),
Personal Health
Care (PHC)
How much $ is spent on HC in US: •$3.49 trillion
absolute, per capita and as a % of •17.9% of GDP
GDP? •$10,739 per capita
Percentage of $ spent in •About 33% - hospitals
hospitals? •About 20% - physicians
On doctors? On Rx drugs? •About 9.5% (10.5% in 2019) - drugs
Chronic disease - what is it & why conditions that last 1 year or more and
is it require
important? What percent of NHE is ongoing medical attention or limit activities
spent on chronic disease? of daily
living or both.
- 90% of the NHE are for chronic and
mental health
diseases.
What are "personal behaviors" and Tobacco, obesity, poor diet, substance
how do they fit into the leading misuse/abuse
causes of death? -Half of the mortality from 10 leading
CODs
attributed to personal behaviors
What percent of Americans are only 6.7% of Americans were hospitalized
hospitalized each year? in 2018
, What portion of Americans are 8% of people under the age of 65 were
uninsured? What portion of uninsured
Americans under age 65 are in 2019
covered * leaves 26.4 M uninsured *
by private health insurance? About 66% of people under the age of 65
are
covered through private insurance
Cost Plus Reimbursement a payment scheme in which
reimbursement to a
provider is based on cost plus a factor to
cover the
value of capital
fee-for-service a system under which doctors and
hospitals
receive a payment for each service they
provide
•Provider-centric outcome
Capitation •Fixed prepayment per person to the
health care
provider for an agreed-on array of services
during
a contract period (Per member/per month)
•May put the physician at odds with the
patient
Value Based Payment a payment system in which provider
payments are
linked to the cost and quality of care
with Verified Solutions | Latest Updated 2026
What is "asymmetry of •Physician vs. patient (vs. 3rd Party payer)
information"?
Why is it important in HC?
What is "non-marketability of risk"? inherent if medicine and medical practice
Health is not a marketable product, that is,
it
cannot be exchanged between consumers
Moral Hazard behaving differently when you know
someone else
is taking the risk (Induced demand)
Adverse Selection the sicker people likely want more
insurance (the
healthier, less)
pooling of risk sharing risk proportionately among many is
a basic
insurance
concept
National Health Expenditure •Provide official estimates of health care
Accounts (NHEA) spending
in the United States and Measures health
care
consumption and health care investment
,National Health Expenditure National Health Expenditures (NHE),
Accounts (NHEA) produce: Health
Consumption Expenditures (HCE),
Personal Health
Care (PHC)
How much $ is spent on HC in US: •$3.49 trillion
absolute, per capita and as a % of •17.9% of GDP
GDP? •$10,739 per capita
Percentage of $ spent in •About 33% - hospitals
hospitals? •About 20% - physicians
On doctors? On Rx drugs? •About 9.5% (10.5% in 2019) - drugs
Chronic disease - what is it & why conditions that last 1 year or more and
is it require
important? What percent of NHE is ongoing medical attention or limit activities
spent on chronic disease? of daily
living or both.
- 90% of the NHE are for chronic and
mental health
diseases.
What are "personal behaviors" and Tobacco, obesity, poor diet, substance
how do they fit into the leading misuse/abuse
causes of death? -Half of the mortality from 10 leading
CODs
attributed to personal behaviors
What percent of Americans are only 6.7% of Americans were hospitalized
hospitalized each year? in 2018
, What portion of Americans are 8% of people under the age of 65 were
uninsured? What portion of uninsured
Americans under age 65 are in 2019
covered * leaves 26.4 M uninsured *
by private health insurance? About 66% of people under the age of 65
are
covered through private insurance
Cost Plus Reimbursement a payment scheme in which
reimbursement to a
provider is based on cost plus a factor to
cover the
value of capital
fee-for-service a system under which doctors and
hospitals
receive a payment for each service they
provide
•Provider-centric outcome
Capitation •Fixed prepayment per person to the
health care
provider for an agreed-on array of services
during
a contract period (Per member/per month)
•May put the physician at odds with the
patient
Value Based Payment a payment system in which provider
payments are
linked to the cost and quality of care
