Hospital Administrator: The majority of HealthWize Hospital's income

Question

Hospital Administrator: The majority of HealthWize Hospital's income currently comes from three main insurance companies.  In order to diversify its sources of income, the hospital will develop its outpatient services to provide clients with the opportunity to visit a nutritionist, a gym, and/or a masseuse on the hospital premises.  Critics have protested that, at other hospitals, such plans have not worked because the funds raised through insurance payments far outweigh the money that will be brought in through these additional services.  Nevertheless, this initiative will not result in a reduction of the hospital's income.  Major service providers, including BeWell Nutrition and Fitness, have committed to moving their main branches to HealthWize Hospital, which will definitely prove to be an attraction for people from neighboring areas, making this a more popular venture than other hospitals'.

In the argument given, the two portions in boldface play which of the following roles?

A. The first presents a plan that the administrator has deemed unworkable; the second is an explanation of why it is unworkable.

B. The first presents a plan to reorganize the hospital's finances; the second is evidence in support of this plan.

C. The first presents a plan, one of whose consequences is debated in the argument; the second is the speaker's conclusion about this consequence.

D. The first presents a plan that has significantly more disadvantages than advantages; the second describes a benefit of this plan.

E. The first presents a plan that the argument attempts to defend against criticism; the second is the criticism of the plan itself.

This is a  CR Butler Question

Check the links to other Butler Projects:

Data Sufficiency Butler  
  Problem Solving Butler  
  Sentence Correction Butler  
  Reading Comprehension Butler  
  Integrated Reasoning Butler

siddhantvarma · Answer

First Boldface Portion (Plan) :  "The hospital will develop its outpatient services to provide clients with the opportunity to visit a nutritionist, a gym, and/or a masseuse on the hospital premises."  This is a plan by the hospital administrator to diversify income by expanding outpatient services.

Criticism : Critics argue that similar plans at other hospitals have failed because the money generated from insurance payments is much greater than what is expected from these additional services.

Second Boldface Portion (Support for the Plan) :  " Nevertheless, this initiative will not result in a reduction of the hospital's income."  
This is the administrator's conclusion about the consequence of implementing the plan, specifically addressing the concern that it might reduce income.

A. The first presents a plan that the administrator has deemed unworkable; the second is an explanation of why it is unworkable.  
This is incorrect. The administrator does  not  deem the plan unworkable. They are defending it against criticism.

B. The first presents a plan to reorganize the hospital's finances; the second is evidence in support of this plan.  
Incorrect. The first portion is a plan to diversify income, but it doesn't explicitly focus on a  reorganization of finances . Moreover, the second is not evidence supporting it, but rather a conclusion about its outcome.

C. The first presents a plan, one of whose consequences is debated in the argument; the second is the speaker's conclusion about this consequence.  
Correct. The first portion presents the plan (developing outpatient services), and critics debate a potential consequence (financial viability). The second portion is the administrator's  conclusion  about this consequence (it won't reduce income).

D. The first presents a plan that has significantly more disadvantages than advantages; the second describes a benefit of this plan.  
Incorrect. The argument does not suggest that the plan has significantly more disadvantages than advantages. It is a  criticism  of the plan, not a discussion of a balance of disadvantages and advantages.

E. The first presents a plan that the argument attempts to defend against criticism; the second is the criticism of the plan itself.  
Incorrect. While the first portion presents the plan, the second is  not  the criticism. Instead, the second boldface portion is the  support  for the plan, not the criticism itself.

The correct answer is C.

Krunaal · Answer

The two boldfaced portions in the argument play the following roles:

The first boldfaced portion outlines the hospital's plan to diversify its sources of income by developing outpatient services.

The second boldfaced portion states the administrator's conclusion, which is that this initiative will not result in a reduction of income, despite the criticisms.

The argument overall is defending the plan against criticisms that similar plans have not worked in other hospitals, and the second boldfaced portion is the administrator’s assertion that this plan will still be successful.

The correct answer is:

(C) The first presents a plan, one of whose consequences is debated in the argument; the second is the speaker's conclusion about this consequence.

Abdelaali91 · Answer

A. the author did not deem the plan unworkable and the second bold portion of the argument is not an explanation but rather a conclusion.

B. The first bold portion does not present a plan to recognize the hospital's finances.

C. Yes both roles are stated correctly.

D. The argument is not presented in advantages/advantages schema. 
E. The second bold portion pf the argument does not criticize the plan.

Bunuel · Answer

Magoosh Official Explanation

Answer = (C).

In the first sentence, the administrator is explaining what the hospital will do; in the second, she is claiming that it will not negatively impact the hospital’s income. The income is debated in the passage, but she concludes that it is not an issue, making (C) the best description of the roles the bolded sentences play.

(A) can’t be right in this case, because the administrator believes in this plan and thinks it will work. The negatives of (A) make it incorrect.

(B) is wrong in scope. The administrator explains that this plan presents a new source of income for the hospital; it isn’t a complete reorganization of the hospital’s finances. Furthermore, the second is statement is a prediction of the future, so it is NOT evidence.

While there may be some disadvantages to this plan (D), it is hard to say that there are significantly more disadvantages than advantages. As the administrator explains them, it sounds as though the plan will be beneficial, if anything.

Finally, while the first part of (E) could be correct, in that the administrator is presenting a plan that she defends from criticism, the second sentence is not the criticism itself, but rather a rebuttal to that criticism.

VerbalBot · Answer

Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Hospital Administrator: The majority of HealthWize Hospital's income

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

Hospital Administrator: The majority of HealthWize Hospital's income

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards