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# Coherent solutions for the problem of reducing health-care

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CEO
Joined: 17 Nov 2007
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Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
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Coherent solutions for the problem of reducing health-care [#permalink]

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20 Mar 2008, 13:33
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Difficulty:

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Question Stats:

100% (00:04) correct 0% (00:00) wrong based on 5 sessions

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Coherent solutions for the problem of reducing health-care costs cannot be found within the current piecemeal (done, made, or accomplished piece by piece or in a fragmentary way *piecemeal reforms in the system*) system of paying these costs. The reason is that this system gives health-care providers and insurers every incentive to shift, wherever possible, the costs of treating illness onto each other or any other party, including the patient. That clearly is the lesson of the various reforms of the 1980s: push in on one part of this pliable spending balloon and an equally expensive bulge pops up elsewhere. For example, when the government health-care insurance program for the poor cut costs by disallowing payments for some visits to physicians, patients with advanced illness later presented themselves at hospital emergency rooms in increased numbers.

The argument provides the most support for which one of the following?

(A) Under the conditions in which the current system operates, the overall volume of health-care costs could be shrunk, if at all, only by a comprehensive approach.
(B) Relative to the resources available for health-care funding, the income of the higher-paid health-care professionals is too high.
(C) Health-care costs are expanding to meet additional funds that have been made available for them.
(D) Advances in medical technology have raised the expected standards of medical care but have proved expensive.
(E) Since unfilled hospital beds contribute to overhead charges on each patients bill, it would be unwise to hold unused hospital capacity in reserve for large-scale emergencies.

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Manager
Joined: 14 Mar 2008
Posts: 130

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20 Mar 2008, 14:30
walker wrote:
Coherent solutions for the problem of reducing health-care costs cannot be found within the current piecemeal (done, made, or accomplished piece by piece or in a fragmentary way *piecemeal reforms in the system*) system of paying these costs. The reason is that this system gives health-care providers and insurers every incentive to shift, wherever possible, the costs of treating illness onto each other or any other party, including the patient. That clearly is the lesson of the various reforms of the 1980s: push in on one part of this pliable spending balloon and an equally expensive bulge pops up elsewhere. For example, when the government health-care insurance program for the poor cut costs by disallowing payments for some visits to physicians, patients with advanced illness later presented themselves at hospital emergency rooms in increased numbers.

The argument provides the most support for which one of the following?

(A) Under the conditions in which the current system operates, the overall volume of health-care costs could be shrunk, if at all, only by a comprehensive approach. My answer because since piece by piece approach doesn't work, then a comprehensive approach should be taken.
(B) Relative to the resources available for health-care funding, the income of the higher-paid health-care professionals is too high. - income of health professionals is irrelevant
(C) Health-care costs are expanding to meet additional funds that have been made available for them. -maybe
(D) Advances in medical technology have raised the expected standards of medical care but have proved expensive. -advances in medicine is irrelevant
(E) Since unfilled hospital beds contribute to overhead charges on each patients bill, it would be unwise to hold unused hospital capacity in reserve for large-scale emergencies. -capacity is irrelevant

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Senior Manager
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20 Mar 2008, 17:43
e?
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Senior Manager
Joined: 15 Aug 2007
Posts: 286

Kudos [?]: 117 [0], given: 0

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20 Mar 2008, 22:34
I have just started attempting CR questions. Please do say if I sound foolish.

Rephrasing:
picemeal system - cannot reduce health-care costs - shift the costs > reforms 1980 - push one part bulge esle where.

Now to find a conclusion we have to look only into the facts provided.

(A) Under the conditions in which the current system operates, the overall volume of health-care costs could be shrunk, if at all, only by a comprehensive approach.
=> Out of scope - other approach not discussed.
(B) Relative to the resources available for health-care funding, the income of the higher-paid health-care professionals is too high.
=> Out of scope - income not discussed.
(C) Health-care costs are expanding to meet additional funds that have been made available for them.
=> additional funds ??? not discussed.
(D) Advances in medical technology have raised the expected standards of medical care but have proved expensive.
=> It clearly sights the reason for why all the above is happening. The increased costs have
created the problem. And all bodies are finding it difficult to cover this increase.

(E) Since unfilled hospital beds contribute to overhead charges on each patients bill, it would be unwise to hold unused hospital capacity in reserve for large-scale emergencies.
=> Its not what we are discussing. bed increasing costs .....

D for me

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Senior Manager
Joined: 29 Jan 2007
Posts: 440

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Location: Earth

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21 Mar 2008, 16:50
In exam I would go for E.

this one has to be ugliest CR I have ever seen.

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Director
Joined: 18 Feb 2008
Posts: 786

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21 Mar 2008, 19:48
A

Basically the paragraph supports the idea that currently cost reduction system is not working, only by approaching this problem with a comprehensive solution that we may reduce the cost.

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Manager
Joined: 02 Mar 2008
Posts: 205

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Concentration: Finance, Strategy

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22 Mar 2008, 05:43
yes, agree with A. What is the OA?

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CEO
Joined: 17 Nov 2007
Posts: 3584

Kudos [?]: 4586 [0], given: 360

Concentration: Entrepreneurship, Other
Schools: Chicago (Booth) - Class of 2011
GMAT 1: 750 Q50 V40

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22 Mar 2008, 10:58
Thanks!
OA is A
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Kudos [?]: 4586 [0], given: 360

Re: CR:health-care costs   [#permalink] 22 Mar 2008, 10:58
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