Small community hospitals in poor urban areas almost always : GMAT Critical Reasoning (CR) - Page 2
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 02 Dec 2016, 14:30

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Small community hospitals in poor urban areas almost always

Author Message
TAGS:

### Hide Tags

SVP
Joined: 17 Feb 2010
Posts: 1558
Followers: 19

Kudos [?]: 558 [0], given: 6

### Show Tags

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.
Senior Manager
Status: Happy to join ROSS!
Joined: 29 Sep 2010
Posts: 278
Concentration: General Management, Strategy
Schools: Ross '14 (M)
Followers: 20

Kudos [?]: 124 [0], given: 48

### Show Tags

19 Mar 2011, 10:54
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!
Manager
Joined: 01 Nov 2010
Posts: 181
Location: Zürich, Switzerland
Followers: 2

Kudos [?]: 38 [0], given: 20

Re: Small community hospitals in poor urban areas almost always [#permalink]

### Show Tags

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.
Manager
Status: struggling with GMAT
Joined: 06 Dec 2012
Posts: 227
Concentration: Accounting
GMAT Date: 04-06-2013
GPA: 3.65
Followers: 14

Kudos [?]: 332 [0], given: 46

Small community hospitals in poor urban areas almost always [#permalink]

### Show Tags

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.............
Intern
Joined: 09 Jan 2012
Posts: 4
Followers: 0

Kudos [?]: 1 [1] , given: 3

Re: Further, a significant majority of the community [#permalink]

### Show Tags

23 Feb 2013, 21:45
1
KUDOS
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.............

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
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
Senior Manager
Joined: 22 Nov 2010
Posts: 289
Location: India
GMAT 1: 670 Q49 V33
WE: Consulting (Telecommunications)
Followers: 5

Kudos [?]: 133 [1] , given: 75

Re: Further, a significant majority of the community [#permalink]

### Show Tags

23 Feb 2013, 22:07
1
KUDOS
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]
_________________

YOU CAN, IF YOU THINK YOU CAN

Senior Manager
Joined: 16 Dec 2011
Posts: 452
Followers: 11

Kudos [?]: 194 [0], given: 70

Re: Small community hospitals in poor urban areas almost always [#permalink]

### Show Tags

13 Apr 2013, 18:52
Merged 3 posts on the same topic "Small community hospitals in poor urban areas almost always".
GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10434
Followers: 882

Kudos [?]: 191 [0], given: 0

Re: Small community hospitals in poor urban areas almost always [#permalink]

### Show Tags

19 Nov 2016, 23:08
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Small community hospitals in poor urban areas almost always   [#permalink] 19 Nov 2016, 23:08

Go to page   Previous    1   2   [ 28 posts ]

Similar topics Replies Last post
Similar
Topics:
4 Paradox Revision: Small community hospitals in poor urban areas 7 05 Mar 2015, 06:19
Small community hospitals in poor urban areas almost always 0 13 Apr 2013, 18:52
7 Some communities in Florida are populated almost exclusively 11 23 Aug 2012, 23:33
Small community hospitals in poor urban areas almost always 0 13 Apr 2013, 18:53
In metropolitan areas, almost 60 percent of all fires are 4 23 Oct 2007, 18:09
Display posts from previous: Sort by