MHA 710 - Healthcare Economics – Exam Questions And Answer.

MHA 710 - Healthcare Economics – Exam Questions And Answer. Types of Economic Evaluation -Answer-Cost-benefit analysis and cost-effectiveness analysis A cost that is not easily quantified, such as pain and suffering, anxiety, and disfigurement. -Answer-Intangible cost A cost that reflects the value the time taken from normal activities to receive medical care and recover from a procedure. -Answer-Indirect cost A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as A. supply-side economics. B. supplier-induced demand. C. supply shocks. D. ceteris paribus. E. the fallacy of supply. -Answer-B. supplier-induced demand A doctor's decision to order three different scans relates most to which information problem? a. Adverse selection b. Consumer information problem c. Moral hazard d. None of the above -Answer-c. Moral hazard A good or service with an income elasticity between zero and one. -Answer-Necessity A group of medical providers that has contracted with an insurance company or employer to provide health care services to a well-defined group according to a well-defined fee schedule. By accepting discount fees, providers are included on the list of preferred providers. -Answer-Preferred provider organization (PPO) A group practice of not buying health insurance but setting aside funds to cover the projected losses incurred by one member of the group. -Answer-Self-insurance A marker, or reliable substitute, for a disease process. Usually a laboratory measure such as high blood pressure and elevated cholesterol levels as a surrogate for heart disease. -Answer-Surrogate measure A mathematical model used to depict a situation where outcomes are partially determined by disease progression and partially under the control of a decision maker. -Answer-Markov decision model A medical condition caused by an injury or disease that existed prior to the application for health insurance. -Answer-Preexisting condition A model used in health care evaluation to depict a disease process that evolves and progresses over time. -Answer-Markov model A paradox in game theory where players acting in their own self-interest choose their dominant strategies and do not achieve the optimal outcome. In such cases, cooperation, not competition, will result in a more profitable outcome. -Answer-Prisoner's dilemma A payment adjustment under Medicare and Medicaid that pays hospitals that serve a large number of indigent patients. -Answer-Disproportionate share A physician's ability to induce demand is greatly enhanced when A. patients pay their own medical bills. B. patients request follow-up visits. C. patients have difficulty gathering and processing information. D. the physician follows strict treatment guidelines. E. treatment options are limited. -Answer-C. patients have difficulty gathering and processing information. A physician's ability to induce demand is greatly enhanced when: A. Treatment options are limited B. The physician follows strict treatment guidelines C. Patients have difficulty gathering and processing information D. Patients pay their own medical bills E. Patients request follow-up visits -Answer-C. Patients have difficulty gathering and processing information A practice of designing insurance policies so that healthy (low-risk) individuals will purchase coverage and those with a history of costly medical problems (high-risk) will not. -Answer-Cream skimming A prepaid hospital plan created by Baylor Hospital for a group of Dallas public school teachers in 1929 is considered the forerunner of what was later called managed care. A. Blue Cross. B. Blue Shield. C. the health maintenance organization. D. major medical insurance. -Answer-A. Blue Cross.