MHA 710 EXAM 3 2026 FINAL REVIEW
BUNDLED SOLUTION PACKAGE
◉ The expanded use of prospective payment in hospitals has changed
the nature of competition in that market. Which of the following
statements is true? Answer: Savings from prospective payments are
substantial and due primarily to fewer hospital admissions and shorter
hospital stays.
◉ The merger of two community hospitals located in the same
geographic market is called: Answer: horizontal integration.
◉ What is the most significant cost of attending medical school?
Answer: The income foregone
◉ Changes caused by the shift from charge-based rates to negotiated
rates has had which of the following results? Answer: 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.
◉ This study was the catalyst for the early twentieth century reform of
medical education in the United States. What was it? Answer: Flexner
Report
◉ Starting salaries for female obstetricians/gynecologists are higher than
those of male obstetricians/gynecologists . What is the best explanation
, for this? Answer: The demand for female obstetricians/gynecologists is
greater than the demand for male obstetricians/gynecologists
◉ Suppose the market for nursing services in a local community is so
dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of
employment be? Answer: W1 and E1
◉ Which of the following statements is true about cost shifting in
hospitals? Answer: The ability to cost shift depends on a hospital's payer
mix.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services since
the mid-1980s? Answer: Outpatient services have been growing, while
inpatient services have been declining.
◉ In order to be a successful price discriminator, a provider must have a
degree of market power (depicted by a downward-sloping demand
curve) and meet what other condition(s)? Answer: Markets must be
segmentable, identifying differences in ability to pay.
BUNDLED SOLUTION PACKAGE
◉ The expanded use of prospective payment in hospitals has changed
the nature of competition in that market. Which of the following
statements is true? Answer: Savings from prospective payments are
substantial and due primarily to fewer hospital admissions and shorter
hospital stays.
◉ The merger of two community hospitals located in the same
geographic market is called: Answer: horizontal integration.
◉ What is the most significant cost of attending medical school?
Answer: The income foregone
◉ Changes caused by the shift from charge-based rates to negotiated
rates has had which of the following results? Answer: 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.
◉ This study was the catalyst for the early twentieth century reform of
medical education in the United States. What was it? Answer: Flexner
Report
◉ Starting salaries for female obstetricians/gynecologists are higher than
those of male obstetricians/gynecologists . What is the best explanation
, for this? Answer: The demand for female obstetricians/gynecologists is
greater than the demand for male obstetricians/gynecologists
◉ Suppose the market for nursing services in a local community is so
dominated by a single community hospital that, for all practical
purposes, it is considered a monopsony. Using the diagram below,
answer the question.
If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of
employment be? Answer: W1 and E1
◉ Which of the following statements is true about cost shifting in
hospitals? Answer: The ability to cost shift depends on a hospital's payer
mix.
◉ Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services since
the mid-1980s? Answer: Outpatient services have been growing, while
inpatient services have been declining.
◉ In order to be a successful price discriminator, a provider must have a
degree of market power (depicted by a downward-sloping demand
curve) and meet what other condition(s)? Answer: Markets must be
segmentable, identifying differences in ability to pay.
