MHA 710 Exam 1 Questions with Correct Answers 100%
Verified Graded A% 2024
MRI Scan - An imaging method that uses magnetic fields to align hydrogen atoms. A
computer processes the resulting signal to produce images of hard and soft tissues.
Unlike X-rays, MRI scans do not expose patients to ionizing radiation.
Narrow Network - A limited group of providers who have contracted with an insurer.
(Patients will usually pay more if they get care from a provider not in the network. The
network is usually restricted to providers with good quality who will accept low
payments.)
Network HMO - An insurance plan that has a variety of contracts with physician groups,
IPAs, and individual physicians. A network HMO may also own the hospitals that it uses
and employ physicians.
Normative Economics - Using values to identify the best options.
Objective Probability - An estimate based on frequencies.
Opportunity Cost - The value of what one cannot do as a result of making a choice.
Out of Pocket Payment - Money a consumer directly pays for a good or service.
Output - A good or service produced by an organization.
Per Service Payment - Payment for each billable service. Providing an additional
service increases the bill.
Point of Service (POS) Plan - Plan that allows members to see any physician but
increases cost sharing for physicians outside the plan's network. (This arrangement has
become so common that POS plans may not be labeled as such.)
Positive Economics - Using objective analysis and evidence to answer questions about
individuals, organizations, and societies.
PPO (Preferred Provider Organization) - Plan that contracts with a network of providers.
(Network providers may be chosen for a variety of reasons, but a willingness to discount
fees is usually required.)
Range - The difference between the largest and smallest values.
Rational Decision Making - Choosing the course of action that offers the best outcomes,
given the constraints one faces.
, Return on Investment - Annual profit divided by the initial investment.
Risk Averse - Preferring a smaller, less risky payoff to a larger payoff with more
variability. (A risk-averse person would choose getting $5 for sure instead of a gamble
with a 50% chance of getting nothing and a 50% chance of getting $10.)
Risk Aversion - When a decision maker is willing to accept a lower payoff in order to
reduce risk.
Risk Neutral - Not caring about risk. (A risk-neutral person would think that getting $5 for
sure is as good as a gamble with a 50% chance of getting nothing and a 50% chance of
getting $10.)
Risk Seeker - A person who prefers more risk to less. (A risk seeker would prefer a
gamble with a 50% chance of getting nothing and a 50% chance of getting $10 to
getting $5 for sure.)
Risk Seeking - When a decision maker is willing to accept a lower payoff in order to
increase risk.
Salary - Fixed compensation per period.
Scenario Analysis - Evaluation of payoffs under differing assumptions.
Sensitivity Analysis - The process of varying an analysis's assumptions to see how
outcomes change.
Social determinants of health - Factors that affect health independently of healthcare
(e.g., education and housing).
Staff Model HMO - A plan that employs staff physicians to provide services.
Standard Deviation - The square root of a variance.
Subjective Probability - An estimate based on judgment.
Underwriting - The process of assessing the risks associated with an insurance policy
and setting the premium accordingly.
Value Based Payment - Payment adjusted on the basis of quality measures.
Variance - The squared deviation of a random variable from its expected value. (If a
variable takes the value 3 with a probability of 0.2, the value 6 with a probability of 0.3,
and the value 9 with a probability of 0.5, its expected value is 6.9. Its variance is 5.49,
which is
0.2 × [3 - 6.9]2 +
Verified Graded A% 2024
MRI Scan - An imaging method that uses magnetic fields to align hydrogen atoms. A
computer processes the resulting signal to produce images of hard and soft tissues.
Unlike X-rays, MRI scans do not expose patients to ionizing radiation.
Narrow Network - A limited group of providers who have contracted with an insurer.
(Patients will usually pay more if they get care from a provider not in the network. The
network is usually restricted to providers with good quality who will accept low
payments.)
Network HMO - An insurance plan that has a variety of contracts with physician groups,
IPAs, and individual physicians. A network HMO may also own the hospitals that it uses
and employ physicians.
Normative Economics - Using values to identify the best options.
Objective Probability - An estimate based on frequencies.
Opportunity Cost - The value of what one cannot do as a result of making a choice.
Out of Pocket Payment - Money a consumer directly pays for a good or service.
Output - A good or service produced by an organization.
Per Service Payment - Payment for each billable service. Providing an additional
service increases the bill.
Point of Service (POS) Plan - Plan that allows members to see any physician but
increases cost sharing for physicians outside the plan's network. (This arrangement has
become so common that POS plans may not be labeled as such.)
Positive Economics - Using objective analysis and evidence to answer questions about
individuals, organizations, and societies.
PPO (Preferred Provider Organization) - Plan that contracts with a network of providers.
(Network providers may be chosen for a variety of reasons, but a willingness to discount
fees is usually required.)
Range - The difference between the largest and smallest values.
Rational Decision Making - Choosing the course of action that offers the best outcomes,
given the constraints one faces.
, Return on Investment - Annual profit divided by the initial investment.
Risk Averse - Preferring a smaller, less risky payoff to a larger payoff with more
variability. (A risk-averse person would choose getting $5 for sure instead of a gamble
with a 50% chance of getting nothing and a 50% chance of getting $10.)
Risk Aversion - When a decision maker is willing to accept a lower payoff in order to
reduce risk.
Risk Neutral - Not caring about risk. (A risk-neutral person would think that getting $5 for
sure is as good as a gamble with a 50% chance of getting nothing and a 50% chance of
getting $10.)
Risk Seeker - A person who prefers more risk to less. (A risk seeker would prefer a
gamble with a 50% chance of getting nothing and a 50% chance of getting $10 to
getting $5 for sure.)
Risk Seeking - When a decision maker is willing to accept a lower payoff in order to
increase risk.
Salary - Fixed compensation per period.
Scenario Analysis - Evaluation of payoffs under differing assumptions.
Sensitivity Analysis - The process of varying an analysis's assumptions to see how
outcomes change.
Social determinants of health - Factors that affect health independently of healthcare
(e.g., education and housing).
Staff Model HMO - A plan that employs staff physicians to provide services.
Standard Deviation - The square root of a variance.
Subjective Probability - An estimate based on judgment.
Underwriting - The process of assessing the risks associated with an insurance policy
and setting the premium accordingly.
Value Based Payment - Payment adjusted on the basis of quality measures.
Variance - The squared deviation of a random variable from its expected value. (If a
variable takes the value 3 with a probability of 0.2, the value 6 with a probability of 0.3,
and the value 9 with a probability of 0.5, its expected value is 6.9. Its variance is 5.49,
which is
0.2 × [3 - 6.9]2 +
