LSUS MHA 710 EXAM 1 COMPLETE
PREPARATION GUIDE WITH CORE HEALTH
ECONOMICS THEORIES AND MODELS
◉ The expanded use of prospective payment in hospitals has
changed the nature of competition in that market. Which of the
following statements is true?
Answer: Savings from prospective payments are substantial and due
primarily to fewer hospital admissions and shorter hospital stays.
◉ The merger of two community hospitals located in the same
geographic market is called:
Answer: horizontal integration.
◉ What is the most significant cost of attending medical school?
Answer: The income foregone
◉ Changes caused by the shift from charge-based rates to negotiated
rates has had which of the following results?
Answer: Most hospitals experience a gap between the amount they
receive from their payers and the amount billed, with receipts as low
as 20 percent of amount billed.
, ◉ This study was the catalyst for the early twentieth century reform
of medical education in the United States. What was it?
Answer: Flexner Report
◉ Starting salaries for female obstetricians/gynecologists are higher
than those of male obstetricians/gynecologists . What is the best
explanation for this?
Answer: The demand for female obstetricians/gynecologists is
greater than the demand for male obstetricians/gynecologists
◉ Suppose the market for nursing services in a local community is
so dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of
employment be?
Answer: W1 and E1
◉ Which of the following statements is true about cost shifting in
hospitals?
Answer: The ability to cost shift depends on a hospital's payer mix.
PREPARATION GUIDE WITH CORE HEALTH
ECONOMICS THEORIES AND MODELS
◉ The expanded use of prospective payment in hospitals has
changed the nature of competition in that market. Which of the
following statements is true?
Answer: Savings from prospective payments are substantial and due
primarily to fewer hospital admissions and shorter hospital stays.
◉ The merger of two community hospitals located in the same
geographic market is called:
Answer: horizontal integration.
◉ What is the most significant cost of attending medical school?
Answer: The income foregone
◉ Changes caused by the shift from charge-based rates to negotiated
rates has had which of the following results?
Answer: Most hospitals experience a gap between the amount they
receive from their payers and the amount billed, with receipts as low
as 20 percent of amount billed.
, ◉ This study was the catalyst for the early twentieth century reform
of medical education in the United States. What was it?
Answer: Flexner Report
◉ Starting salaries for female obstetricians/gynecologists are higher
than those of male obstetricians/gynecologists . What is the best
explanation for this?
Answer: The demand for female obstetricians/gynecologists is
greater than the demand for male obstetricians/gynecologists
◉ Suppose the market for nursing services in a local community is
so dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of
employment be?
Answer: W1 and E1
◉ Which of the following statements is true about cost shifting in
hospitals?
Answer: The ability to cost shift depends on a hospital's payer mix.
