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The health-care economy is replete with unusual and even

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The health-care economy is replete with unusual and even [#permalink] New post 30 Jul 2012, 12:07
The health-care economy is replete with unusual and
even unique economic relationships. One of the least
understood involves the peculiar roles of producer or
“provider" and purchaser or “consumer" in the typical
(5) doctor-patient relationship. In most sectors of the econ-
omy, it is the seller who attempts to attract a potential
buyer with various inducements of price, quality, and
utility, and it is the buyer who makes the decision.
Where circumstances permit the buyer no choice because
(10) there is effectively only one seller and the product is
relatively essential, government usually asserts monopoly
and places the industry under price and other regulations.
Neither of these conditions prevails in most of the
health-care industry.
(15) In the health-care industry, the doctor-patient
relationship is the mirror image of the ordinary relationship
between producer and consumer. Once an individual
has chosen to see a physician-and even then there may
be no real choice-it is the physician who usually makes
(20) all significant purchasing decisions: whether the patient
should return “next Wednesday,” whether X-rays are
needed, whether drugs should be prescribed, etc. It is a
rare and sophisticated patient who will challenge such
professional decisions or raise in advance questions about
(25) price, especially when the ailment is regarded as serious.
This is particularly significant in relation to hospital
care. The physician must certify the need for hospitaliza-
tion, determine what procedures will be performed, and
announce when the patient may be discharged. The
(30) patient may be consulted about some of these decisions,
but in the main it is the doctor's judgments that are final.
Little wonder then that in the eyes of the hospital it is the
physician who is the real “consumer.” As a consequence,
the medical staff represents the “power center" in hospi-
(35) tal policy and decision-making, not the administration.
Although usually there are in this situation four
identifiable participants-the physician, the hospital, the
patient, and the payer (generally an insurance carrier or
government)-the physician makes the essential deci-
(40) sions for all of them. The hospital becomes an extension
of the physician; the payer generally meets most of the
bona fide bills generated by the physician/hospital; and
for the most part the patient plays a passive role. In
routine or minor illnesses, or just plain worries, the
(45) patient's options are, of course, much greater with
respect to use and price. In illnesses that are of some
significance, however, such choices tend to evaporate,
and it is for these illnesses that the bulk of the health-care
dollar is spent. We estimate that about 75-80 percent of
(55) health-care expenditures are determined by physicians,
not patients. For this reason, economy measures
directed at patients or the general public are relatively
ineffective.

1. The author's primary purpose is to
(A) speculate about the relationship between a patient's ability to pay and the treatment received
(B) criticize doctors for exercising too much control over patients
(C) analyze some important economic factors in health care
(D) urge hospitals to reclaim their decision-making authority
(E) inform potential patients of their health-care rights

2. It can be inferred that doctors are able to determine hospital policies because
(A) it is doctors who generate income for the hospital
(B) most of a patient's bills are paid by his health insurance
(C) hospital administrators lack the expertise to question medical decisions
(D) a doctor is ultimately responsible for a patient's health
(E) some patients might refuse to accept their physician's advice

3. According to the author, when a doctor tells a patient to “return next Wednesday," the doctor is in effect
(A) taking advantage of the patient's concern for his health
(B) instructing the patient to buy more medical services
(C) warning the patient that a hospital stay might be necessary
(D) advising the patient to seek a second opinion
(E) admitting that the initial visit was ineffective

4. The author is most probably leading up to
(A) a proposal to control medical costs
(B) a discussion of a new medical treatment
(C) an analysis of the causes of inflation in the United States
(D) a study of lawsuits against doctors for malpractice
(E) a comparison of hospitals and factories

5. The tone of the passage can best be described as
(A) whimsical
(B) cautious
(C) analytical
(D) inquisitive
(E) defiant

6. With which of the following statements would the author be likely to agree?
Ⅰ. Most patients are reluctant to object to the course of treatment prescribed by a doctor or to question the cost of the services.
Ⅱ. The more serious the illness of a patient, the less likely it is that the patient will object to the course of treatment prescribed or to question the cost of services.
Ⅲ. The payer, whether insurance carrier or the government, is less likely to acquiesce to demands for payment when the illness of the patient is regarded as serious.
(A) I only
(B) II only
(C) I and II only
(D) II and III only
(E) I, II, and III

7. The author's primary concern is to
(A) define a term
(B) clarify a misunderstanding
(C) refute a theory
(D) discuss a problem
(E) announce a new discovery

8. The most important feature of a “consumer" as that term is used in line 33 of the passage is that the “consumer" is the party that
(A) pays for goods or services
(B) delivers goods or services
(C) orders goods or services
(D) reimburses a third party for goods or services
(E) supplies goods and services to a third party

Folks can we have your attempt with reasoning on the above passage.

My attempts:

1- C
2- C
3- B
4- E
5- C
6- C
7- D
8-C
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Re: The health care economy is replete with unusual and even [#permalink] New post 31 Jul 2012, 00:27
Thanks for the RC.It was lengthy passage but a decent one
My answer choices are:
1)c
2)a
3)b
4)a
5)c
6)c
7)d
8)c

Could we have the OA please ?
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Re: The health care economy is replete with unusual and even [#permalink] New post 31 Jul 2012, 03:43
My answer choices are
C
C (not sure, could be D as well). it is not stated that hospital admins lack knowledge.
B
A I chose A because of the last line that talk about the economy
C not whimsical (sudden ideas), not cautious (no decision), not inquisitive (questioning), not defiant (strong stand against the norm)
C
D
C

attempted in 10 minutes.
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Re: The health-care economy is replete with unusual and even [#permalink] New post 08 Aug 2012, 12:48
1. The author's primary purpose is to
(A) speculate about the relationship between a patient's ability to pay and the treatment received
(B) criticize doctors for exercising too much control over patients
(C) analyze some important economic factors in health care
(D) urge hospitals to reclaim their decision-making authority
(E) inform potential patients of their health-care rights

In the 1st part author talks about a generalization - introduction of the concept of provider and consumer. In the 2nd part, author talks about the premises - how Doctors are really consumers not the patients - to draw the conclusion that economy measures directed at patients or general public are relatively ineffective.

The main idea is therefore, author talks about trends such as doctor is really the consumer in health care. This is idea is clearly offered by option C - analyze some important economic factors in health care



2. It can be inferred that doctors are able to determine hospital policies because
(A) it is doctors who generate income for the hospital
(B) most of a patient's bills are paid by his health insurance
(C) hospital administrators lack the expertise to question medical decisions
(D) a doctor is ultimately responsible for a patient's health
(E) some patients might refuse to accept their physician's advice

Citing "Little wonder then that in the eyes of the hospital it is the physician who is the real “consumer.” As a consequence, the medical staff represents the “power center" in hospital policy and decision-making, not the administration." , Doctors are consumers, hence bread earners for the hospital. As a result, they are able to determine hospital policies. The idea is represented by option 'A' - it is doctors who generate income for the hospital

3. According to the author, when a doctor tells a patient to “return next Wednesday," the doctor is in effect
(A) taking advantage of the patient's concern for his health
(B) instructing the patient to buy more medical services
(C) warning the patient that a hospital stay might be necessary
(D) advising the patient to seek a second opinion
(E) admitting that the initial visit was ineffective

Same idea that doctor is consumer. So when doctor tells patient to come back on 'Wednesday', he/she is instructing the patient to buy more service. Hence Option B - instructing the patient to buy more medical services - is correct.

4. The author is most probably leading up to
(A) a proposal to control medical costs
(B) a discussion of a new medical treatment
(C) an analysis of the causes of inflation in the United States
(D) a study of lawsuits against doctors for malpractice
(E) a comparison of hospitals and factories

The conclusion of the passage is that since doctors are main consumers, economy measures directed at patients or the general public are relatively ineffective. Or in other words, author is proposing to control medical costs by focusing economy measures at doctors - consumer rather than general public. hence, Option (A)- a proposal to control medical costs - is correct.

5. The tone of the passage can best be described as
(A) whimsical
(B) cautious
(C) analytical
(D) inquisitive
(E) defiant

The author is analyzing the passage without raising his/her own voice in the passage except for drawing a conclusion based on the facts - premises. Hence, option C - Analytical is correct.

6. With which of the following statements would the author be likely to agree?
Ⅰ. Most patients are reluctant to object to the course of treatment prescribed by a doctor or to question the cost of the services.
Ⅱ. The more serious the illness of a patient, the less likely it is that the patient will object to the course of treatment prescribed or to question the cost of services.
Ⅲ. The payer, whether insurance carrier or the government, is less likely to acquiesce to demands for payment when the illness of the patient is regarded as serious.
(A) I only
(B) II only
(C) I and II only
(D) II and III only
(E) I, II, and III - correct - based on lines below

"It is a rare and sophisticated patient who will challenge such professional decisions or raise in advance questions about price, especially when the ailment is regarded as serious." and "In routine or minor illnesses, or just plain worries, the patient's options are, of course, much greater with respect to use and price. In illnesses that are of some significance, however, such choices tend to evaporate,and it is for these illnesses that the bulk of the health-care dollar is spent."


7. The author's primary concern is to
(A) define a term - No term has been defined
(B) clarify a misunderstanding
(C) refute a theory - no theory has been suggested to refute
(D) discuss a problem
(E) announce a new discovery - there is no new discovery

Little confused between B and D. Although the last 2 lines say 'We estimate that about 75-80 percent of
health-care expenditures are determined by physicians, not patients. For this reason, economy measures
directed at patients or the general public are relatively ineffective.'. This shows that author is discussing a problem along with what caused the problem. - hence D , but it can also be a clarifying a misunderstanding between consumer and producer - B.
I am more inclined towards D as this goes well with overall passage.
'


8. The most important feature of a “consumer" as that term is used in line 33 of the passage is that the “consumer" is the party that
(A) pays for goods or services - incorrect - this is insurance or govt
(B) delivers goods or services - out of scope
(C) orders goods or services - Correct - as doctor acts as consumer and orders medical services
(D) reimburses a third party for goods or services - incorrect - insurance or govt
(E) supplies goods and services to a third party - out of scope
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Re: The health-care economy is replete with unusual and even [#permalink] New post 25 Aug 2012, 12:10
My answers:-
C
C
B
E
C
C
B
C

Please post the OAs
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Re: The health-care economy is replete with unusual and even [#permalink] New post 27 Aug 2012, 03:51
Decent RC. My answers are below. Jaiswalamrita, can you please post the answers please.
1. C
2. D
3. B
4. C
5. C
6. C
7. D
8. C
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Re: The health-care economy is replete with unusual and even [#permalink] New post 30 Aug 2012, 23:13
My answers are
C
D
B
E
C
C
D
C
Post the OA's pls.
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Re: The health-care economy is replete with unusual and even [#permalink] New post 21 Sep 2012, 15:13
11 minutes. My answers are:
1) C
2) A
3) B
4) A
5) C
6) C
7) B
8) C

Not sure if the OAs have been posted....
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Re: The health-care economy is replete with unusual and even [#permalink] New post 04 May 2013, 00:28
C,a,b,a,c,c,d,c 6mins 15 secs. Oa?
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Re: The health-care economy is replete with unusual and even   [#permalink] 04 May 2013, 00:28
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