United States Hospitals have traditionally relied primarily : GMAT Critical Reasoning (CR)
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# United States Hospitals have traditionally relied primarily

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13 Sep 2005, 04:19
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Official Guide for GMAT Verbal Review, 2nd Edition

Practice Question
Question No.: 75
Page: 147
Difficulty:

United States Hospitals have traditionally relied primarily on revenues from paying patients to offset losses from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients to amounts at or below actual costs.

Which of the following conclusions is best supported by the information above?

(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
(B) If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it.
(C) Some patients have incomes too high for eligibility for governmnetal health insurance but are unable to afford private insurance for hospital care.
(D) If the hospitals reduce ther costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
(E) Even though philanthropic donations have traditionally provided some support for the the hospitals, such donations are at present declining.
[Reveal] Spoiler: OA
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13 Sep 2005, 04:23
I vote for D.
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13 Sep 2005, 04:30
It should be B
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13 Sep 2005, 10:28
B here too. D is tempting but the passage states that insurers have been STRICTLY limiting theiry payments at or below costs.
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13 Sep 2005, 10:39
My vote goes for B.
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13 Sep 2005, 10:51
Shud be B.

D seems wrong because we cannot certainly say that insurance companies will pay the hospitals the total amounts even after the reduction in charges.

OA/OE Plz.

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13 Sep 2005, 11:03
another b
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13 Sep 2005, 11:39
IMO clearly B
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13 Sep 2005, 12:11
B it is.
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13 Sep 2005, 12:33
United States Hospitals have traditionally relied primarily on revenues from paying patients to offset losses from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients to amounts at or below actual costs.

Which of the following conclusions is best supported by the information above?

(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
(B) If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it.
(C) Some patients have incomes too high for eligibility for governmnetal health insurance but are unable to afford private insurance for hospital care.
(D) If the hospitals reduce ther costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
(E) Even though philanthropic donations have traditionally provided some support for the the hospitals, such donations are at present declining.

This is B,

A and C is out of scope and E is irrevelent.
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14 Sep 2005, 04:33
OA is B

The primary way hospitals have covered the cost of unreimbursed care is no longer available to them. It follows that they have three options: finding a new way to cover costs, reducing costs by giving less unreimbursed care, or suffering a loss.
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14 Sep 2005, 07:41
agree with B

d is not correct because there is no indication that insurance companies would continue to pay the same amount.

all the other answers are beyond the scope.

kimmyg wrote:
United States Hospitals have traditionally relied primarily on revenues from paying patients to offset losses from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients to amounts at or below actual costs.

Which of the following conclusions is best supported by the information above?

(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
(B) If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it.
(C) Some patients have incomes too high for eligibility for governmnetal health insurance but are unable to afford private insurance for hospital care.
(D) If the hospitals reduce ther costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
(E) Even though philanthropic donations have traditionally provided some support for the the hospitals, such donations are at present declining.
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08 Jun 2011, 20:12
United States hospitals have traditionally relied primarily on revenues from paying patients to offset losses
from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay
hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients
to amounts at or below actual costs.
Which of the following conclusions is best supported by the information above?
(A) Although the advance of technology has made expensive medical procedures available to the wealthy,
such procedures are out of the reach of low-income patients.
(B) If hospitals do not find ways to raising additional income for unreimbursed care, they must either deny
some of that care of suffer losses if they give it.
(C) Some patients have incomes too high for eligibility for governmental health insurance but are unable to
afford private insurance for hospital care.
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of
reimbursement, thereby providing more funds for unreimbursed care.
(E) Even though philanthropic donations have traditionally provided some support for the hospitals, such
donations are at present declining.
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08 Jun 2011, 20:52
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ruturaj wrote:
United States hospitals have traditionally relied primarily on revenues from paying patients to offset losses
from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay
hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients to amounts at or below actual costs.

Read the paraphrase very carefully. Its a small trick

Which of the following conclusions is best supported by the information above?

(A) Although the advance of technology has made expensive medical procedures available to the wealthy,Maybe true but its not what we are looking for
such procedures are out of the reach of low-income patients.
(B) If hospitals do not find ways to raising additional income for unreimbursed care, they must either deny some of that care of suffer losses if they give it. Correct Answer since hospitals wont have funds this is what they will have to do
(C) Some patients have incomes too high for eligibility for governmental health insurance but are unable to afford private insurance for hospital care.out of scope
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
if read this carefully, even if hospitals reduce costs, insurance cos. will maintain current level of reimbursement - which is up to the actual cost or below it. So if cost goes down, reimbursements will as well.

(E) Even though philanthropic donations have traditionally provided some support for the hospitals, such
donations are at present declining.Nothing is mentioned regarding this in the passage

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09 Jun 2011, 10:28
Please explain me with the conclusion..I am bit confused what author wants to tell us
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16 Jun 2011, 06:12
Look at it this way

Conventional scenario: Hospital spends 1000 bucks on treating a patient. The patient pays back 1100 bucks to the hospital for the treatment helping the Hospital make a profit.

Scenario with private health insurance firms: Hospital spends 1000 bucks on treating a patient. The patient's insurer pays back only 900 bucks to the hospital. So the hospital is making a loss.

The last line shows that in the above example an insurance company will at the maximum pay 1000 bucks and not more for treatment. So the hospitals do not stand a chance to make money.

Option D explains that by cutting their operating costs (i.e. bringing down the cost of treatment lower than 900) they will continue to make profits.
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26 Oct 2011, 13:10
I picked B...dont need any leap to arrive at this conclusion
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26 Oct 2011, 18:12
+1 B
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27 Oct 2011, 09:32
B
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29 Oct 2011, 20:48
Another vote for B!
Re: CR-US Hospitals   [#permalink] 29 Oct 2011, 20:48

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