United States Hospitals have traditionally relied primarily : GMAT Critical Reasoning (CR)
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

It is currently 02 Dec 2016, 14:29
GMAT Club Tests

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.

Close

Request Expert Reply

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

United States Hospitals have traditionally relied primarily

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

3 KUDOS received
Manager
Manager
avatar
Joined: 17 Aug 2005
Posts: 167
Followers: 3

Kudos [?]: 187 [3] , given: 0

United States Hospitals have traditionally relied primarily [#permalink]

Show Tags

New post 13 Sep 2005, 04:19
3
This post received
KUDOS
10
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

78% (02:35) correct 22% (01:44) wrong based on 953 sessions

HideShow timer Statistics

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
Request Expert Reply
If you have any questions
you can ask an expert
New!
Director
Director
avatar
Joined: 15 Aug 2005
Posts: 798
Location: Singapore
Followers: 2

Kudos [?]: 51 [0], given: 0

 [#permalink]

Show Tags

New post 13 Sep 2005, 04:23
I vote for D.
_________________

Cheers, Rahul.

Manager
Manager
avatar
Joined: 28 Jun 2005
Posts: 217
Followers: 1

Kudos [?]: 5 [0], given: 0

 [#permalink]

Show Tags

New post 13 Sep 2005, 04:30
It should be B
Senior Manager
Senior Manager
avatar
Joined: 15 Aug 2005
Posts: 257
Location: Las Vegas, NV
Followers: 2

Kudos [?]: 4 [0], given: 0

 [#permalink]

Show Tags

New post 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.
SVP
SVP
User avatar
Joined: 28 May 2005
Posts: 1723
Location: Dhaka
Followers: 7

Kudos [?]: 320 [0], given: 0

 [#permalink]

Show Tags

New post 13 Sep 2005, 10:39
My vote goes for B.
_________________

hey ya......

Manager
Manager
avatar
Joined: 15 Aug 2005
Posts: 179
Location: Hyderabad
Followers: 1

Kudos [?]: 5 [0], given: 0

 [#permalink]

Show Tags

New post 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.

Krishna
Manager
Manager
avatar
Joined: 31 Jul 2005
Posts: 86
Followers: 1

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

 [#permalink]

Show Tags

New post 13 Sep 2005, 11:03
another b
Senior Manager
Senior Manager
avatar
Joined: 29 Nov 2004
Posts: 484
Location: Chicago
Followers: 1

Kudos [?]: 25 [0], given: 0

 [#permalink]

Show Tags

New post 13 Sep 2005, 11:39
IMO clearly B
_________________

Fear Mediocrity, Respect Ignorance

Manager
Manager
avatar
Joined: 03 Sep 2005
Posts: 135
Followers: 2

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

 [#permalink]

Show Tags

New post 13 Sep 2005, 12:11
B it is.
_________________

Life is not measured by the number of breaths you take, but by the number of moments that take your breath away.

Senior Manager
Senior Manager
avatar
Joined: 22 Jun 2005
Posts: 363
Location: London
Followers: 1

Kudos [?]: 11 [0], given: 0

 [#permalink]

Show Tags

New post 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.
Manager
Manager
avatar
Joined: 17 Aug 2005
Posts: 167
Followers: 3

Kudos [?]: 187 [0], given: 0

 [#permalink]

Show Tags

New post 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.
Senior Manager
Senior Manager
avatar
Joined: 11 May 2004
Posts: 458
Location: New York
Followers: 1

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

Re: CR-US Hospitals [#permalink]

Show Tags

New post 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.
Manager
Manager
avatar
Joined: 07 Dec 2010
Posts: 116
Concentration: Marketing, General Management
Followers: 0

Kudos [?]: 29 [0], given: 12

United States hospitals have traditionally relied primarily [#permalink]

Show Tags

New post 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.
2 KUDOS received
Senior Manager
Senior Manager
User avatar
Status: 750+ or Burst !
Joined: 01 May 2011
Posts: 386
Location: India
Concentration: General Management, Strategy
GMAT 1: 670 Q48 V35
GPA: 3.5
Followers: 24

Kudos [?]: 112 [2] , given: 26

GMAT ToolKit User
Re: Best supports conclusion? [#permalink]

Show Tags

New post 08 Jun 2011, 20:52
2
This post received
KUDOS
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

_________________

GMAT done - a mediocre score but I still have a lot of grit in me

The last 20 days of my GMAT journey

Manager
Manager
avatar
Joined: 07 Dec 2010
Posts: 116
Concentration: Marketing, General Management
Followers: 0

Kudos [?]: 29 [0], given: 12

Re: Best supports conclusion? [#permalink]

Show Tags

New post 09 Jun 2011, 10:28
Please explain me with the conclusion..I am bit confused what author wants to tell us
Intern
Intern
avatar
Joined: 26 Jul 2010
Posts: 9
Location: Asia
WE 1: Manufacturing & Planning
WE 2: Supply Chain Management
Followers: 0

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

Re: Best supports conclusion? [#permalink]

Show Tags

New post 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.
Senior Manager
Senior Manager
User avatar
Status: MBAing!!!!
Joined: 24 Jun 2011
Posts: 311
Location: United States (FL)
Concentration: Finance, Real Estate
GPA: 3.65
WE: Project Management (Real Estate)
Followers: 6

Kudos [?]: 52 [0], given: 56

Re: CR-US Hospitals [#permalink]

Show Tags

New post 26 Oct 2011, 13:10
I picked B...dont need any leap to arrive at this conclusion
Retired Moderator
User avatar
Status: 2000 posts! I don't know whether I should feel great or sad about it! LOL
Joined: 04 Oct 2009
Posts: 1712
Location: Peru
Schools: Harvard, Stanford, Wharton, MIT & HKS (Government)
WE 1: Economic research
WE 2: Banking
WE 3: Government: Foreign Trade and SMEs
Followers: 95

Kudos [?]: 885 [0], given: 109

Re: CR-US Hospitals [#permalink]

Show Tags

New post 26 Oct 2011, 18:12
+1 B
_________________

"Life’s battle doesn’t always go to stronger or faster men; but sooner or later the man who wins is the one who thinks he can."

My Integrated Reasoning Logbook / Diary: http://gmatclub.com/forum/my-ir-logbook-diary-133264.html

GMAT Club Premium Membership - big benefits and savings

Intern
Intern
avatar
Joined: 27 Jan 2011
Posts: 28
Followers: 0

Kudos [?]: 7 [0], given: 0

Re: CR-US Hospitals [#permalink]

Show Tags

New post 27 Oct 2011, 09:32
B
Manager
Manager
avatar
Joined: 28 Sep 2011
Posts: 89
Followers: 0

Kudos [?]: 29 [0], given: 15

Re: CR-US Hospitals [#permalink]

Show Tags

New post 29 Oct 2011, 20:48
Another vote for B!
Re: CR-US Hospitals   [#permalink] 29 Oct 2011, 20:48

Go to page    1   2    Next  [ 29 posts ] 

    Similar topics Author Replies Last post
Similar
Topics:
2 United States Hospitals have traditionally relied primarily on revenue gameboy11887 2 20 Feb 2015, 18:53
Traditionally, candidates for elected offices have goodyear2013 2 25 Mar 2014, 13:49
22 Experts publish their posts in the topic Traditionally, candidates for elected offices have TirthankarP 10 31 Aug 2013, 08:29
United States hospitals have traditionally relied primarily ruturaj 0 06 Aug 2013, 19:28
4 Older United States automobiles have been identified as marcodonzelli 10 08 Mar 2008, 07:19
Display posts from previous: Sort by

United States Hospitals have traditionally relied primarily

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| 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®.