The health-care economy is replete with unusual and even unique econom

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.
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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