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Small community hospitals in poor urban areas almost always

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Re: Small community hospitals [#permalink] New post 10 Aug 2010, 06:23
C for me.

It cannot be E because argument says....., a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay.

Since majority of people lacks insurance negotiating with private insurers for higher reimbursement rates for routine care will not help.

Rather partnering with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis will be helpful because then the small hospitals can provide specialty care, which is covered by govt. plan.
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Re: Small community hospitals [#permalink] New post 19 Mar 2011, 10:54
E cannot be the correct answer. Read attentively the stymulus:
Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay.

So, majority of the district population either use the gov insurance or does not have any insurance. Negotiations with the private insurers won't help!
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Re: Small community hospitals in poor urban areas almost always [#permalink] New post 04 Mar 2012, 11:57
I will go with C.

"Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more
affordable than hiring these specialists full time."

Solves 2 issues-
a. Save money by appointing specialist on a part time basis.
b. once specialist doctors are available, the local people will start coming to the hospitals for the advanced treatments.
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Small community hospitals in poor urban areas almost always [#permalink] New post 23 Feb 2013, 13:42
Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care.

Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?


(A)Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.
(B)Advertise the hospital's specialty care services in the local community as well as nearby communities to attract more business.
(C)Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.


(D)Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.
(E)Negotiate with private insurers for higher reimbursement rates for routine care.
Need explanation.............
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Re: Further, a significant majority of the community [#permalink] New post 23 Feb 2013, 21:45
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mun23 wrote:
Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care.

Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?


(A)Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.
(B)Advertise the hospital's specialty care services in the local community as well as nearby communities to attract more business.
(C)Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.


(D)Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.
(E)Negotiate with private insurers for higher reimbursement rates for routine care.
Need explanation.............


Answer should be C

assume this as a closed cycle or some sort of cyclical graph.
good docs are costly>community hospital doesn't have good surgeons>fewer people go to hospital for speciality care>less revenue
routine care>only small and poor assurance cover is provided by gov >less revenue

look for answer which breaks the pattern.
A wrong:people are aware about the specialists surgesons avaliable in hospitals so negotiating rates won't help as long as people don't come for the care.
B.again advertising won't attract more people as long as good surgeons are not available/
C.this helps to keep the cost of hiring low as well as serves the purpose of attracting more patients as patients know that hospital has got good doctor.correct answer
D:launching awareness programme will not necessarily result in insurers and gov. doing something about this issue.
E.Even if hospital negotiates successfully with private insurers(there is no guarantee) ,most of people in community has gov insurance and hence won't imapct hospital in improving its margins
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Re: Further, a significant majority of the community [#permalink] New post 23 Feb 2013, 22:07
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Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care.

Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?

(A)Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.This will increase the local residents rush to prestigious hospitals. Therefore, no change in pattern

(B)Advertise the hospital's specialty care services in the local community as well as nearby communities to attract more business. More business with low margin may not enable the Small community hospitals to become profitable

(C)Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time. Breaking the pattern: High revenue specialists ===> prestigious hospitals. This may attract local residents for specialty care in Small community hospitals. Correct

(D)Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers. OFS. No comparison of health plans will help to change the pattern

(E)Negotiate with private insurers for higher reimbursement rates for routine care. will not help to change the pattern

Pattern: High revenue specialists ---wants---> higher salaries ===provided by ===> prestigious hospitals <-----specialty care or forgo care------ local residents -----routine checkup--->local hospital =====[b]Net outcome===> Small community hospitals is in LOSS[/b]
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Re: Small community hospitals in poor urban areas almost always [#permalink] New post 13 Apr 2013, 18:52
Merged 3 posts on the same topic "Small community hospitals in poor urban areas almost always".
Re: Small community hospitals in poor urban areas almost always   [#permalink] 13 Apr 2013, 18:52
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