MHA 707 EXAM C 2026 PRACTICE SOLUTION
SCRIPT TESTED RESULTS
◉ public hospitals built by. Answer: gov entities for the poor (usually
local gov)
◉ 1900-1930. Answer: ~0.3% of GDP
◉ 1960. Answer: 1.3% GDP = 4x, four-fold, 400%
◉ 1980. Answer: 4.1% GDP= 3x since 1960, 13.6x since 1930
◉ -expansion of capitation and rise of managed care,
-growth of vertical and horizontal integration of HC organizations
and integrated delivery systems
-increase in for-profit health care organizations. Answer:
incremental changes
◉ two contrasting ways to pay health care providers for their
services. Answer: capitation and indemnity health insurance
(difference is in who takes risk)
,◉ capitation. Answer: -practice of paying flat fee to health care
provider in exchange for stipulated range of services during a given
time period, usually a year
-flat fee guarantees medical coverage for that person regardless of
how much or how little care the individual needs or uses
◉ indemnity health insurance. Answer: -reimburses an individual
for fees paid for medical services after they are performed,
-payments may be made to the patient or directly to the provider, on
a retrospective, fee-for-service basis.
-providers not employed by, contracted to, or owned by the payer
(insurer)
-insurer simply pays for care according to some agreed-to schedule
-financial responsibility (or risk) for the cost of health care is born
by the insurer
-beneficiaries (in most cases, the beneficiaries'' employers) pay
sums (usually called premiums) to the insurance companies
-in turn, insurance companies pay the providers for the care used by
the beneficiaries
-payment is made on a fee-for-service or item-of-service basis, after
service is received (or retrospectively)
-there are usually some out-of-pocket (deductibles and coinsurance)
paid by beneficiaries, and dollar-amount limits on services covered
by the insurance.
, ◉ what increased with organizational change. Answer: capitation
◉ organizational change. Answer: from solo physician practices
financed primarily by indemnity insurance to group practices
financed primarily by capitation
◉ organizational changes began with. Answer: development of
prepaid group medical practices, later with health maintenance
organizations (HMOs), then with managed care organizations
(MCOs)
◉ value equation. Answer: value = quality / cost
◉ value equation modified. Answer: value = outcome (quality,
efficacy, safety) / cost (resource tallies, dollars)
◉ multi unit hospital systems. Answer: -include two or more acute-
care hospitals owned, leased, or managed by a single corporate
entity,
-number and size will continue to increase
◉ first half of 20th century. Answer: private sector health care
organizations were predominantly nonprofit
SCRIPT TESTED RESULTS
◉ public hospitals built by. Answer: gov entities for the poor (usually
local gov)
◉ 1900-1930. Answer: ~0.3% of GDP
◉ 1960. Answer: 1.3% GDP = 4x, four-fold, 400%
◉ 1980. Answer: 4.1% GDP= 3x since 1960, 13.6x since 1930
◉ -expansion of capitation and rise of managed care,
-growth of vertical and horizontal integration of HC organizations
and integrated delivery systems
-increase in for-profit health care organizations. Answer:
incremental changes
◉ two contrasting ways to pay health care providers for their
services. Answer: capitation and indemnity health insurance
(difference is in who takes risk)
,◉ capitation. Answer: -practice of paying flat fee to health care
provider in exchange for stipulated range of services during a given
time period, usually a year
-flat fee guarantees medical coverage for that person regardless of
how much or how little care the individual needs or uses
◉ indemnity health insurance. Answer: -reimburses an individual
for fees paid for medical services after they are performed,
-payments may be made to the patient or directly to the provider, on
a retrospective, fee-for-service basis.
-providers not employed by, contracted to, or owned by the payer
(insurer)
-insurer simply pays for care according to some agreed-to schedule
-financial responsibility (or risk) for the cost of health care is born
by the insurer
-beneficiaries (in most cases, the beneficiaries'' employers) pay
sums (usually called premiums) to the insurance companies
-in turn, insurance companies pay the providers for the care used by
the beneficiaries
-payment is made on a fee-for-service or item-of-service basis, after
service is received (or retrospectively)
-there are usually some out-of-pocket (deductibles and coinsurance)
paid by beneficiaries, and dollar-amount limits on services covered
by the insurance.
, ◉ what increased with organizational change. Answer: capitation
◉ organizational change. Answer: from solo physician practices
financed primarily by indemnity insurance to group practices
financed primarily by capitation
◉ organizational changes began with. Answer: development of
prepaid group medical practices, later with health maintenance
organizations (HMOs), then with managed care organizations
(MCOs)
◉ value equation. Answer: value = quality / cost
◉ value equation modified. Answer: value = outcome (quality,
efficacy, safety) / cost (resource tallies, dollars)
◉ multi unit hospital systems. Answer: -include two or more acute-
care hospitals owned, leased, or managed by a single corporate
entity,
-number and size will continue to increase
◉ first half of 20th century. Answer: private sector health care
organizations were predominantly nonprofit
