Exam 3) MHA 710 Exam 3: Healthcare Economics: Questions & Answers: Latest Updated Solution

Which of the following statements is true about cost shifting in hospitals? a. Regardless of payer mix, hospitals are taking full advantage of their bargaining power with payers who are able to cost shift. b. Capacity-constrained medical providers are not able to cost shift. c. The positive correlation coefficient between cost-to-payment ratios for various payers indicates that cost shifting is taking place. d. The ability to cost shift depends on a hospital's payer mix. e. Classic Ramsey pricing can be interpreted in different ways, leading researchers into arguing that if it looks like cost shifting, it probably is cost shifting. (Ans- d. The ability to cost shift depends on a hospital's payer mix. This study was the catalyst for the early twentieth century reform of medical education in the United States. What was it? a. Hill-Burton Committee b. Mangrum Report c. Coolidge Commission d. Flexner Report e. Kaiser Foundation Study (Ans- d. Flexner Report Changes caused by the shift from charge-based rates to negotiated rates has had which of the following results? a. Charging master rates serve as a powerful guide for optimal resource allocation in the industry. b. The change has increased the importance of Ramsey pricing principles in setting rates. c. 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. d. A growing percentage of patients with insurance are paying billed rates. (Ans- c. 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. If the market were perfectly competitive instead of dominated by a monopsonist, what would the equilibrium wage and level of employment be?