MHA 610 COURSE STUDY MODULE 2026
PRACTICE INSTRUCTION COMPLETE
PROBLEMS AND RESPONSES MANUAL
"What is meant by the term "health care costs" Give the 3 meanings
Answer: 1. Billings and premiums that the patient pays
2.How much debt the nation is in for medical expenses
3. The cost of producing services such as supplies and equipment
◍ Rand Health - How does it show relationship of rising costs and
third party reimbursement? Answer: The experiment showed how
people who paid out of pocket were less likely to utilize the services,
making them spend less. Those who were covered used the services
more. No difference in health status was noted
◍ How does an imperfect market have higher price and quantity
than a highly competitive market? Answer: A free market is driven by
supply and demand. Our market is only partially a free market, and is
driven by a multiple payers system, making it difficult to negotiate
prices
◍ How is cost containment different in the US compared to other
countries? Answer: Other countries have a "top-down" cost control
with a set budget on a single-payer system. In the US, we have a
multiple-payer system with no direct control over costs, making it
hard to contain.
, ◍ Discuss the effectiveness of CON Answer: Certificate of Need
laws were designed to give state funding to new equipment and
investments that hospitals would apply for approval for. CON laws
failed because of legal challenges and barriers to expansion. They also
conflict with the ACA because they haven't been shown to reduce
costs. Most states are ready to abandon them all together
◍ What are the 4 competition based cost containment strategies?
Answer: 1. Demand-side Incentives
2.Supply-side regulation
3.Payer-driven competition
4.Utilization controls
◍ What are the 5 dimensions of access? Answer: 1. Availability
2.. Accessibility
3. Accommodation
4. Affordability
5. Acceptability
◍ What are the two types of health-related quality of life Answer:
1. General Quality of life and overall well-being
2. Disease related - the effects of treatments for that disorder and
impairments of the disease
PRACTICE INSTRUCTION COMPLETE
PROBLEMS AND RESPONSES MANUAL
"What is meant by the term "health care costs" Give the 3 meanings
Answer: 1. Billings and premiums that the patient pays
2.How much debt the nation is in for medical expenses
3. The cost of producing services such as supplies and equipment
◍ Rand Health - How does it show relationship of rising costs and
third party reimbursement? Answer: The experiment showed how
people who paid out of pocket were less likely to utilize the services,
making them spend less. Those who were covered used the services
more. No difference in health status was noted
◍ How does an imperfect market have higher price and quantity
than a highly competitive market? Answer: A free market is driven by
supply and demand. Our market is only partially a free market, and is
driven by a multiple payers system, making it difficult to negotiate
prices
◍ How is cost containment different in the US compared to other
countries? Answer: Other countries have a "top-down" cost control
with a set budget on a single-payer system. In the US, we have a
multiple-payer system with no direct control over costs, making it
hard to contain.
, ◍ Discuss the effectiveness of CON Answer: Certificate of Need
laws were designed to give state funding to new equipment and
investments that hospitals would apply for approval for. CON laws
failed because of legal challenges and barriers to expansion. They also
conflict with the ACA because they haven't been shown to reduce
costs. Most states are ready to abandon them all together
◍ What are the 4 competition based cost containment strategies?
Answer: 1. Demand-side Incentives
2.Supply-side regulation
3.Payer-driven competition
4.Utilization controls
◍ What are the 5 dimensions of access? Answer: 1. Availability
2.. Accessibility
3. Accommodation
4. Affordability
5. Acceptability
◍ What are the two types of health-related quality of life Answer:
1. General Quality of life and overall well-being
2. Disease related - the effects of treatments for that disorder and
impairments of the disease
