MHA 711 EXAM 3 - Healthcare Economics Questions with correct answers.

MHA 711 EXAM 3 - Healthcare Economics Questions with correct answers. 2. If the market were perfectly competitive instead of dominated by a monopsonist, what would the equilibrium wage and level of employment be? a. W1 and E1 b. W2 and E0 c. W0 and E0 d. W0 and E1 e. W0 and E2 -Answer-a. W1 and E1 A classification system for physicians' services, using a weighting scheme that reflects the relative value of the various services performed. Developed for Medicare by a group of Harvard researchers, it considers time, skill, and overhead cost required for each service. When used in conjunction with a monetary conversion factor, medical fees are determined. -Answer-Resource-based relative value scale (RBRVS) A compilation of hospital specific charges for all items that the hospital can bill to patients, insurance plans, and other payers. The list includes all procedures, services, drugs, and tests that are performed at the facility. -Answer-Chargemaster A congressionally mandated scheme to classify outpatient services into clinically similar procedures. -Answer-Ambulatory payment classification (APC) A financial measure of a firm's ability to generate after-tax profit out of its total sales. Calculated by dividing after-tax profit by total sales. -Answer-Return on sales A good that is non-rival in distribution and non-exclusive in consumption -Answer-Public good A guarantee that all citizens will have health insurance coverage regardless of income or health status. Coverage usually requires mandatory participation. -Answer-Universal coverage A limit on total spending for a given time period -Answer-Spending cap A linear pricing scheme where prices to different customers are computed based on individual price elasticity of demand. Customers with a high willingness to pay are charged higher prices. -Answer-Ramsey pricing A Medicare policy providing physicians with a guaranteed payment of 80