ECON 315 - Quiz 6 - Chapters 10 & 11 Final Exam and Accurate Answers.

This study was the catalyst for the early 20th century reform of medical education in the United States. What was it? - Answer Flexner Report The dominant factor affecting medical care delivery and finance in the 1960s was - Answer the creation of Medicare and Medicaid. The dominant factor affecting medical care delivery and finance in the 1980s was - Answer prospective payment for hospitals. The dominant factor affecting medical care delivery and finance in the 1990s was - Answer the explosive growth of managed care. Which of the following statements is true concerning the trend in hospital care between in-patient and out-patient services since the mid-1980s? - Answer Out-patient services have increased substantially because admissions are down 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 - Answer cost-shifting. The predominate organizational form for U.S. hospitals is not-for-profit. Why? - Answer The not-for-profit form provides the most benefits to physicians. Using the physician-control model to explain hospital behavior leads to which of the following conclusions? - Answer Other medical inputs tend to be over used to maximize physicians' productivity. The merger of two community hospitals located in the same geographic market is called - Answer horizontal integration. Economies of scale exist when - Answer long-run average costs decline as output increases. Horizontal integration allows firms to do all of the following except - Answer fully integrate with primary care clinics and acute care nursing facilities.