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MHA 710 Test 3

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Exam of 15 pages for the course Healthcare Finance MHA 706 at Healthcare Finance MHA 706 (MHA 710 Test 3)

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MHA 710 Test 3
Which of the following statements about the distribution of physicians among
specialties is true in the United States?
a. The majority of physicians specialize in general/family practice.
b. There are twice as many specialists as there are generalists.
c. The specialty distribution in the United States is similar to that of the rest of the
world.
d. There are twice as many generalists as there are specialists. - CORRECT
ANSWER-There are twice as many specialists as there are generalists.

The amount that Medicare pays a hospital for treating a Medicare patient is
determined:
a. at the time of admission to the hospital.
b. after the hospital bill is reviewed by Medicare auditors.
c. after medical services are provided.
d. before the patient sees a physician.
e. at the point when the diagnosis is made. - CORRECT ANSWER-at the point
when the diagnosis is made.

Which of the following statements is true about cost shifting in hospitals?
a. Regardless of payer mix, hospitals are taking full advantage of their bargaining
power with payers who are able to cost shift.
b. Classic Ramsey pricing can be interpreted in different ways, leading
researchers into arguing that if it looks like cost shifting, it probably is cost
shifting.
c. The ability to cost shift depends on a hospital's payer mix.
d. The positive correlation coefficient between cost-to-payment ratios for various
payers indicates that cost shifting is taking place.
e. Capacity-constrained medical providers are not able to cost shift. - CORRECT
ANSWER-The ability to cost shift depends on a hospital's payer mix.

If the market were perfectly competitive instead of dominated by a monopsonist,
what would the equilibrium wage and level of employment be?
a. W0 and E0
b. W0 and E1

, c. W1 and E1
d. W0 and E2
e. W2 and E0 - CORRECT ANSWER-W1 and E1

Which of the following statements is true concerning the trend in community
hospital care between inpatient and outpatient services since the mid-1980s?
a. There has been no noticeable trend in either inpatient or outpatient services.
b. Both inpatient and outpatient services have been declining.
c. Outpatient services have been growing, while inpatient services have been
declining.
d. Outpatient services have been declining, while inpatient services have been
growing.
e. Both inpatient and outpatient services have been growing. - CORRECT
ANSWER-Outpatient services have been growing, while inpatient services have
been declining.

The expanded use of prospective payment in hospitals has changed the nature
of competition in that market. Which of the following statements is true?
a. Savings from prospective payments are substantial and due primarily to fewer
hospital admissions and shorter hospital stays.
b. The switch to diagnosis-related group payments in the 1980s has actually had
little effect on competition because so much of hospital spending comes from the
federal government.
c. After an initial drop in operating margins shortly after the introduction of
diagnosis-related groups (DRGs), Medicare margins have improved and most
hospitals are generating 5-8 percent surpluses on all their Medicare business.
d. Because patients pay such a small percentage of hospital bills, prospective
payment has had little effect on hospital operations. - CORRECT
ANSWER-Savings from prospective payments are substantial and due primarily
to fewer hospital admissions and shorter hospital stays.

Starting salaries for female obstetricians/gynecologists are higher than those of
male obstetricians/gynecologists . What is the best explanation for this?
a. There are more males in obstetrics/gynecology residency programs than
females.
b. The demand for female obstetricians/gynecologists is greater than the demand
for male obstetricians/gynecologists .

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