GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 22 Sep 2018, 06:11

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

Confirm Cancel

Paradox Revision: Small community hospitals in poor urban areas

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

Hide Tags

Current Student
User avatar
V
Joined: 19 Mar 2012
Posts: 5002
Location: India
GMAT 1: 760 Q50 V42
GPA: 3.8
WE: Marketing (Non-Profit and Government)
Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post Updated on: 14 Jul 2018, 22:41
1
8
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

73% (01:38) correct 27% (01:58) wrong based on 417 sessions

HideShow timer Statistics

This question is part of the GMAT Club Critical Reasoning : Paradox Revision Project.

Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care.

Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?

A. Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.

B. Advertise the hospital’s specialty care services in the local community as well as nearby communities to attract more business.

C. Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.

D. Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.

E. Negotiate with private insurers for higher reimbursement rates for routine care.

_________________

Have an MBA application Question? ASK ME ANYTHING!

My Stuff: Four Years to 760 | MBA Trends for Indian Applicants

My GMAT Resources
V30-V40: How to do it! | GMATPrep SC | GMATPrep CR | GMATPrep RC | Critical Reasoning Megathread | CR: Numbers and Statistics | CR: Weaken | CR: Strengthen | CR: Assumption | SC: Modifier | SC: Meaning | SC: SV Agreement | RC: Primary Purpose | PS/DS: Numbers and Inequalities | PS/DS: Combinatorics and Coordinates

My MBA Resources
Everything about the MBA Application | Over-Represented MBA woes | Fit Vs Rankings | Low GPA: What you can do | Letter of Recommendation: The Guide | Indian B Schools accepting GMAT score | Why MBA?

My Reviews
Veritas Prep Live Online


Originally posted by souvik101990 on 05 Mar 2015, 07:19.
Last edited by Skywalker18 on 14 Jul 2018, 22:41, edited 1 time in total.
formatted
Current Student
User avatar
V
Joined: 19 Mar 2012
Posts: 5002
Location: India
GMAT 1: 760 Q50 V42
GPA: 3.8
WE: Marketing (Non-Profit and Government)
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 05 Mar 2015, 07:27
Retired Moderator
User avatar
Joined: 19 Apr 2013
Posts: 626
Concentration: Strategy, Healthcare
Schools: Sloan '18 (A)
GMAT 1: 730 Q48 V41
GPA: 4
GMAT ToolKit User Premium Member
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 05 Mar 2015, 11:20
Chose the answer C. Hope it is correct.
_________________

If my post was helpful, press Kudos. If not, then just press Kudos !!!

Manager
Manager
avatar
Joined: 25 Mar 2014
Posts: 143
Location: India
Concentration: Operations, Finance
GMAT Date: 05-10-2015
GPA: 3.51
WE: Programming (Computer Software)
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 05 Mar 2015, 19:59
1
Answer is C.
Question is about breaking the "cycle", and it can be done either by availing money from some source to pay the specialist or by making the specialists charge less to the small hospitals. Option C is doing the later.

A - Incorrect. Negotiation will not help, as a majority of people are not able to pay or do not have insurance.
B - Incorrect. Hospitals lack special care since doctors are not available.
D - Incorrect. Majority already using govt. insurance plans.
E - OFS.
_________________

Please give Kudos to the post if you liked.

Math Expert
User avatar
V
Joined: 02 Aug 2009
Posts: 6800
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 05 Mar 2015, 21:18
Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care. Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?

A. Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.

B. Advertise the hospital’s specialty care services in the local community as well as nearby communities to attract more business.

C. Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.

D. Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.

E. Negotiate with private insurers for higher reimbursement rates for routine care.

ans is C, as with availability of specialist on need basis, these small community hospitals will win back the people who go to nearby hospitals .. and the cycle of financial constrains would break..
_________________

1) Absolute modulus : http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
2)Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html
3) effects of arithmetic operations : https://gmatclub.com/forum/effects-of-arithmetic-operations-on-fractions-269413.html


GMAT online Tutor

Director
Director
User avatar
Joined: 07 Aug 2011
Posts: 554
Concentration: International Business, Technology
GMAT 1: 630 Q49 V27
GMAT ToolKit User
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 07 Mar 2015, 03:25
souvik101990 wrote:
This question is part of the GMAT Club Critical Reasoning : Paradox Revision Project.

Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care. Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?

A. Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.

B. Advertise the hospital’s specialty care services in the local community as well as nearby communities to attract more business.

C. Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.

D. Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.

E. Negotiate with private insurers for higher reimbursement rates for routine care.




Here is the conclusion of the argument :
surgeons flock to hospitals that are more prestigious and can afford to pay higher salaries. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care.
what should be done to get these surgeons back should be our answer ... lets check

A. Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.
--- goverment plans only covers regular care and there is no mention of private insurers. so this option is not our answer.

B. Advertise the hospital’s specialty care services in the local community as well as nearby communities to attract more business.
-- Ok, but this does not explain why the surgeons will come back to hospital and we are told surgeons are the one which yield high margins for hospital.

C. Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.
--Aaahaa..this looks promising...now we have a surgeon available on need basis. thats what we want .

D. Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.
--passage doesnt mention about private insurers.
E. Negotiate with private insurers for higher reimbursement rates for routine care.
--we are concerned about speciality care also passage doesnt mention about private insurers.


Let me know if my reasoning has a loop hole. suggestions invited.

thanks
lucky
_________________

Thanks,
Lucky

_______________________________________________________
Kindly press the Image to appreciate my post !! :-)

Manager
Manager
User avatar
Joined: 23 Oct 2014
Posts: 93
Concentration: Marketing
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 08 Mar 2015, 17:18
Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care. Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?

A. Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.
If local residents only go to small community hospitals for routine care, instead of specialty care, then even if the small hospitals receive higher reimbursements from the government it won't help. In addition, most of the local residents don't have insurance so higher reimbursements from private insurers won't help either.

B. Advertise the hospital’s specialty care services in the local community as well as nearby communities to attract more business.
This won't change the fact that residents are aware that specialists work at other hospitals and will still frequent the affluent hospitals.

C. Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.
If small hospitals can obtain affordable specialists then people may begin patronizing the small hospitals.

D. Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.
This may gain sympathy but if residents need specialized care they are still going to go to nearby hospitals.

E. Negotiate with private insurers for higher reimbursement rates for routine care.
Similar to A. If the residents don't have insurance then higher reimbursements from insurance companies aren't going to help.
Senior Manager
Senior Manager
User avatar
Joined: 15 Oct 2015
Posts: 336
Concentration: Finance, Strategy
GPA: 3.93
WE: Account Management (Education)
GMAT ToolKit User
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 25 Feb 2016, 10:31
souvik101990 wrote:
This question is part of the GMAT Club Critical Reasoning : Paradox Revision Project.

Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care. Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?

A. Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.

B. Advertise the hospital’s specialty care services in the local community as well as nearby communities to attract more business.

C. Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.

D. Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.

E. Negotiate with private insurers for higher reimbursement rates for routine care.

I need to understand this question first.
It's hazy on some corner
Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 2949
Premium Member
Re: Paradox Revision: Small community hospitals in poor urban areas  [#permalink]

Show Tags

New post 14 Jul 2018, 04:10
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.
_________________

-
April 2018: New Forum dedicated to Verbal Strategies, Guides, and Resources

Re: Paradox Revision: Small community hospitals in poor urban areas &nbs [#permalink] 14 Jul 2018, 04:10
Display posts from previous: Sort by

Paradox Revision: Small community hospitals in poor urban areas

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

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.