Find all School-related info fast with the new School-Specific MBA Forum

It is currently 04 May 2015, 22:19

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Taken from HARD CR's in 800 score - Hospital Z has a high

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 26 Dec 2005
Posts: 42
Followers: 0

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

Taken from HARD CR's in 800 score - Hospital Z has a high [#permalink] New post 26 Sep 2006, 04:01
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Taken from HARD CR's in 800 score -

Hospital Z has a high percentage of followup surgeries. Those are surgeries that have to be done after the first surgery is not successful. In most cases this happens when patients are willing to be treated in this hospital, which is considerably cheaper compared to others in the region. Followup surgeries are done at the expense of hospital Z and reduce its income drastically.

Which of the following is the best solution to reduce the number of the followup surgeries?

a. Hospital Z has to ensure that all its patients know the risks compared to the more expensive options available
b. Hospital Z needs to hire more professional staff without increasing its prices.
c. Hospital Z needs to decrease the number of patients it serves.
d. Hospital Z needs to increase its prices significantly in order to decrease the number of patients.
e. Hospital Z needs to charge patients for followup surgeries, even if the patients would cover 30% of the cost of these surgeries.
Director
Director
avatar
Joined: 10 Oct 2005
Posts: 531
Location: US
Followers: 1

Kudos [?]: 13 [0], given: 0

 [#permalink] New post 26 Sep 2006, 04:07
will go with D...I will explain if correct.
Intern
Intern
User avatar
Joined: 18 Sep 2006
Posts: 43
Followers: 0

Kudos [?]: 1 [0], given: 0

 [#permalink] New post 26 Sep 2006, 04:41
Should be E..
This will reduce the number of patients marginally and increase income. At the same time this will ensure that the costs are not significantly increased so as to drastically reduce the number of patients and decreasing revenues
Senior Manager
Senior Manager
User avatar
Joined: 02 Sep 2006
Posts: 256
Followers: 1

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

 [#permalink] New post 26 Sep 2006, 04:45
It should be E. D is close to the answer but it's wrong because it doesn't specify which price to increase. E is more specific.
VP
VP
User avatar
Joined: 21 Aug 2006
Posts: 1026
Followers: 1

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

 [#permalink] New post 26 Sep 2006, 04:48
yeah..E makes more sense. It wont harm either patients or hospital.
_________________

The path is long, but self-surrender makes it short;
the way is difficult, but perfect trust makes it easy.

Intern
Intern
avatar
Joined: 26 Dec 2005
Posts: 42
Followers: 0

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

 [#permalink] New post 26 Sep 2006, 04:53
The correct answer is D.

B or E could have been the other alternatives but all we KNOW is that a) they wanted to reduce its income drastically and b) Currently they are considerably cheaper and therefore have more patients. D is the best answer from what we know.

a. This ignores the fact that low prices may be a factor in drawing patients to Hospital Z.
b. Hiring more professional staff would be expensive and lead to a further decrease in profits, as the prices would not go up. Not a feasible solution.
c. Decreasing the number of patients would decrease profits, the same logic as in B.
d. Increase in price will reduce the number of patients and will proportionally reduce the number of follow up surgeries.
e. This statement does not provide enough information. We do not know whether the number of patients would decrease and how it will influence the profits.
Intern
Intern
avatar
Joined: 26 Dec 2005
Posts: 42
Followers: 0

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

 [#permalink] New post 26 Sep 2006, 04:55
P.S Above by correct answer I mean the Official answer is D
Senior Manager
Senior Manager
User avatar
Joined: 02 Sep 2006
Posts: 256
Followers: 1

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

 [#permalink] New post 26 Sep 2006, 05:07
wow this is really a HARD CR
Director
Director
avatar
Joined: 10 Oct 2005
Posts: 531
Location: US
Followers: 1

Kudos [?]: 13 [0], given: 0

 [#permalink] New post 26 Sep 2006, 06:35
I selected D because in case of E we don't exactly know what will be the outcome of charging repeat surgeries cost to patients.

D is more specific. If the total cost is increased it can be at par with other hospitals
Current Student
User avatar
Joined: 29 Jan 2005
Posts: 5244
Followers: 23

Kudos [?]: 179 [0], given: 0

Reviews Badge
 [#permalink] New post 26 Sep 2006, 06:49
For major surgeries, Hospital Z should raise the cost of it's medical fees so as to deter doctors from mistreating a patient in the beginning. If the fee is higher, doctors are under greater pressure to get the surgery done correct the first time so as to avoid follow-up procedures.

(d)
Senior Manager
Senior Manager
User avatar
Joined: 11 Jul 2006
Posts: 383
Location: TX
Followers: 1

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

 [#permalink] New post 26 Sep 2006, 07:47
I was way off on this one.
Director
Director
avatar
Joined: 17 Jul 2006
Posts: 716
Followers: 1

Kudos [?]: 8 [0], given: 0

 [#permalink] New post 26 Sep 2006, 09:36
Late BUT D
VP
VP
User avatar
Joined: 25 Jun 2006
Posts: 1175
Followers: 2

Kudos [?]: 72 [0], given: 0

 [#permalink] New post 26 Sep 2006, 22:36
E for me.

remember it is "BEST" solution. D certainly is not the best.
Manager
Manager
avatar
Joined: 28 Feb 2006
Posts: 85
Followers: 1

Kudos [?]: 3 [0], given: 0

 [#permalink] New post 04 Oct 2006, 21:12
D

The question is : which is the best solution to reduce the number of followup surgeries. It does not say that the income must not be reduced. In fact it does not say anything about costs just that the number of surgeries should be reduced. Hence A, B and E are irrelevant.

Between C and D, D is more convincing because it addresses the main reason that hospital Z has more patients - its cheaper. Hence option D which says that the number of patients can be reduced by increasing the costs is a winner.
_________________

Try and try until you succeed! There is just no giving up!

Director
Director
avatar
Joined: 18 Jul 2006
Posts: 531
Followers: 1

Kudos [?]: 30 [0], given: 0

 [#permalink] New post 04 Oct 2006, 23:51
Late but D.
  [#permalink] 04 Oct 2006, 23:51
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic Anyone taken the 800 score CATs? shaselai 3 22 Mar 2010, 08:38
28 Anyone taken the 800 score CATs? shaselai 22 22 Mar 2010, 06:47
Hospital Z has a high percentage of follow up surgeries. Praetorian 15 02 Jul 2006, 14:57
Taken from Score 800 karlfurt 3 25 Jun 2006, 09:21
Display posts from previous: Sort by

Taken from HARD CR's in 800 score - Hospital Z has a high

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.