MHA 710 Exam 1 Questions And Answers

MHA 710 Exam 1 r r r


Studyronlineratrhttps://quizlet.com/_cogmjz




MHA 710 Exam 1 Questions And Answers
1. Opportunity cost is a measure of: foregone opportunities and value based on the r r r r r r r r r r r r r


alternative not chosen. r r


2. The opportunity cost of investing in a new lithotripter (a machine that pulveriz
r r r r r r r r r r r r


es kidney stones with sound waves) is: defined by the next best use of the money inv
r r r r r r r r r r r r r r r r


ested in the equipment. r r r


3. What percentage of Americans considered the complete repeal of the Pa-
r r r r r r r r r r


rtient Protection And Affordable Care Act of 2010 a good thing?: 40 percent
r r r r r r r r r r r r


4. By 2020, what was the forecasted percentage amount of health care spend-
r r r r r r r r r r r


ring paid by individuals?: 10.4 percent
r r r r r


5. The "invisible hand" using Adam Smith's terminology refers to: market for
r r r r r r r r r r


ces working through the price mechanism.
r r r r r


6. According to recent public opinion polls, what percentage of Americans are sat r r r r r r r r r r r


isfied with the quality of the medical care they receive?: 70 percent
r r r r r r r r r r r


7. According to economic theory what is the optimal percentage of GDP to be spe r r r r r r r r r r r r r


nt on medical care?: There is no widely accepted way to determine the optimal percenta
r r r r r r r r r r r r r r


ge.
8. Which of the following statements is based on positive analysis?: Individuals wit
r r r r r r r r r r r


hout health insurance have less access to physicians' services than those who have he
r r r r r r r r r r r r r


alth insurance and The high cost of health insurance places U.S. firms at a competitive d
r r r r r r r r r r r r r r r


isadvantage with their foreign competitors. r r r r


9. Public option: A public health insurance plan comparable to Medicaid, designed to c
r r r r r r r r r r r r


ompete with private insurance. r r r


10. Uncertainty: A state in which multiple outcomes are possible but the likelihood of a r r r r r r r r r r r r r


ny one outcome is not known.
r r r r r


11. Premium: A periodic payment required to purchase an insurance policy. r r r r r r r r r


12. Group insurance: A plan whereby an entire group receives insurance under a sing
r r r r r r r r r r r r


le policy. The insurance is actually issued to the plan holder, usually an employer or associ
r r r r r r r r r r r r r r r


ation.
13. Medicare: Health insurance for the elderly provided under an amendment to the Soc r r r r r r r r r r r r


ial Security Act.
r r


14. Medicaid: Health insurance for the poor financed jointly by federal and state gov r r r r r r r r r r r r


1r/r18

, MHA 710 Exam 1 r r r


Studyronlineratrhttps://quizlet.com/_cogmjz
ernments.
15. Flexner Report: A 1910 report published as part of a critical review of medical educ
r r r r r r r r r r r r r r


ation in the United States.The response of the medical establishment led
r r r r r r r r r r r


to significant changes in the accreditation procedures of medical schools and an improv
r r r r r r r r r r r r


ment in the quality of medical care.
r r r r r r


16. Collective bargaining: The negotiation process whereby representatives of empl
r r r r r r r r


oyers and employees agree upon the terms of a labor contract, including wages and benef
r r r r r r r r r r r r r r


its.




2r/r18

, MHA 710 Exam 1 r r r


Studyronlineratrhttps://quizlet.com/_cogmjz
17. Cost shifting: The practice of charging higher prices to one group of patients, usua
r r r r r r r r r r r r r


lly those with health insurance, in order to provide free care to the uninsured or discounte
r r r r r r r r r r r r r r r


d care to those served by Medicare and Medicaid
r r r r r r r r


18. Certificate of need (CON): Regulations that attempt to avoid the costly duplica- r r r r r r r r r r r


tion of services in the hospital industry. Providers are required to secure a certificate of ne
r r r r r r r r r r r r r r r r


ed before undertaking a major expansion of facilities or services.
r r r r r r r r r


19. Employee Retirement Income Security Act (ERISA): Federal legislation pas r r r r r r r r


sed in 1974 that sets minimum standards on employee benefit plans, such as pensi
r r r r r r r r r r r r r


ons, health insurance, and disability.The statute protects the interests of employee
r r r r r r r r r r r


s in matters concerning eligibility for benefits.The law also protects employers from
r r r r r r r r r r r r r


certain state regulations. For example, states are not allowed to regulate self-
r r r r r r r r r r r


insured plans and cannot mandate that employers provide health insurance to their
r r r r r r r r r r r r


employees.
20. Entitlement programs: Government assistance programs where eligibility is det r r r r r r r r


ermined by a specified criteria, such as age, health status, and level of income. These pr
r r r r r r r r r r r r r r r


ograms include Social Security, Medicare, Medicaid,Temporary Assistance for Needy F
r r r r r r r r r r


amilies (TANF), and many others. r r r r


21. Prospective payment: Payment determined prior to the provision of services. A f r r r r r r r r r r r


eature of many managed care organizations that base payment on capitation.
r r r r r r r r r r


22. Capitation: A payment method providing a fixed, per capita payment to providers f r r r r r r r r r r r r


or a specified medical benefits package.Providers are required to treat a well-
r r r r r r r r r r r r


defined population for a fixed sum of money, paid in advance, without regard to the numb
r r r r r r r r r r r r r r r


er or nature of the services provided to each person.
r r r r r r r r r


23. Diagnosis-
related group: A patient classification scheme based on certain demographic, diag
r r r r r r r r r r


nostic, and therapeutic characteristics developed by Medicare and used to compens
r r r r r r r r r r


ate hospitals. r


24. Relative-
value scale: An index that assigns weights to various medical services used to determin
r r r r r r r r r r r r r


e the relative fees assigned to them.
r r r r r r


25. Retrospective payment: Payment determined after delivery of the good or ser r r r r r r r r r r


vice.Traditional fee-for-service medicine determines payment retrospectively.
r r r r r r


26. Managed care: A delivery system that originally integrated the financing and provi r r r r r r r r r r r


sionof medical carein one organization.Today, the termencompasses different arrange
r r r r r r r r r r r r


ments designed to coordinate services and control costs.
r r r r r r r


27. Indemnity insurance: Insurance based on the principle that someone suffering an r r r r r r r r r r r


economic loss receives a payment approximately equal to the size of the loss. r r r r r r r r r r r r


28. Horizontal integration: The merger of two or more firms that produce the same goo r r r r r r r r r r r r r


d or service.
r r




3r/r18