Question

1) Over the past hundred years, the major source of hospital revenues has changed three times. Which one of the following was NOT a major revenue source for the hospitals last hundred years?

A. charity

B. insurance

C. HMOs

D. government

2.   The introduction of a new drug for use in the United States:

A. usually does not result in a patent until after the drug has been finally approved for use, so that no patient life will be wasted

B. is almost always eventually successful if the product can get FDA approval as an Investigational New Drug (IND)

C. currently requires approximately ten years from the first research of the product to final permission to sell the drug

D. is along-process, but has been speeded up considerably since 1962 when the Harris-Kefauver amendments were passed

E. required extensive testing for safety and toxicity but not for actual efficacy.

3. More than half of the U.S. population is covered by employer group health insurance. One of the underlying reasons is that

A. covering a large group under a single contract increases transaction costs.

B. group coverage increases adverse selection.

C. employer payments towards health insurance premiums reduce tax benefits.

D. many of the most expensive patients are heavily subsidized or excluded.

E. it is both the most preferred and the most common method for part-time employees to obtain affordable coverage.

4. MCOs often are credited with the following advantages in health care:

A. Emphasis on reduced health care coverage

B. Integrate health care funding with delivery of health care services

C. Reimbursement methods other than URC

D. All of the above

5. Does a surplus of hospital beds in an area make it _________ to start an HMO?

A. easier

B. harder

C. depends on government policies

D. no impact.

6. If the laws of the United States changed and you could sell one of your kidneys legally for $10,000 or more, we would expect which of the following?

A. Supply of kidneys for transplant would increase

B. Cost of kidneys would increase

C. The supply curve for kidneys would go flat

D. None of the above

7. A monopolist that experiences long run economies of scale over the entire market demand curve has a _______________.

A. Perfect competition

B. Monopolistic competition

C. Oligopoly

D. Natural monopoly

8. Alcohol and cigarettes have an _________________ demand according to your textbook which makes them a good steady source of government revenue.

A. Elastic

B. Inelastic

C. Static

D. Dynamic

9. Which is the largest payer for the nursing homes?

A. Medicare

B. Medicaid

C. Private Insurance

D. HMOs

E. None of the above

10. You fraudulently subscribe to an insured group of lower risk individuals than you truly should belong to with your health problems to get lower premiums. This is known as:

A. Selection of the fittest

B. Adverse selection

C. Cherry picking

D. Moral hazard

11. A physician has just been charged _____________, the newspaper says this means the physician being charged has been abusing his role as a medical advisor to increase his own economic self interests.

A. Adverse possession

B. Physician practice hypothesis

C. Physician cost shifting

D. Supplier induced demand or SID

12. What is the motivation behind the cost-control features of managed care?

A. To ensure access to specialty care through general practitioner gatekeepers.

B. To influence the way physicians practice medicine by changing the financial incentive structure of medical care delivery.

C. To shift the financial risk onto patients.

D. To eliminate all the guesswork from diagnoses by establishing practice guidelines.

E. To create competition by providing patients with a wide range of providers.

Answer 1

1) Over the past hundred years, the major source of hospital revenues has changed three times. HMOs was NOT a major revenue source for the hospitals last hundred years

Option C. HMOs

because it faced resistance from organised medicine.

2) The introduction of a new drug for use in the United States:

Option e. required extensive testing for safety and toxicity but not for actual efficacy.

3. More than half of the U.S. population is covered by employer group health insurance. One of the underlying reasons is that

E. it is both the most preferred and the most common method for part-time employees to obtain affordable coverage.

4. MCOs often are credited with the following advantages in health care:

Option D. All of the above

5. Does a surplus of hospital beds in an area make it _________ to start an HMO?

Here the charge will be a fixed annual fee. Thus a surplus of hospital beds will make it easier to start a HMO as larger numbers can be accommodated. The correct answer is A.

Note: 4 parts at a time