Forum Home > GMAT > Quantitative > Problem Solving (PS)
Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Dec 1310:00 AM EST
-12:00 PM EST
Have you ever wondered how to score a PERFECT 805 on the GMAT? Meet Julia, a banking professional who used the Target Test Prep course to achieve this incredible feat. Julia's story is nothing short of an inspiration.
Dec 1410:00 AM EST
-12:00 PM EST
Think a 100% GMAT Verbal score is out of your reach? Target Test Prep will make you think again! Our course uses techniques such as topical study and spaced repetition to maximize knowledge retention and make studying simple and fun.
Dec 1411:00 AM IST
-01:00 PM IST
Attend this session to learn how to Deconstruct arguments, Pre-Think Author’s Assumptions, and apply Negation Test.- Dec 15
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Dec 1608:00 AM PST
-11:59 PM PST
GMAT Club 12 Days of Christmas is a 4th Annual GMAT Club Winter Competition based on solving questions. This is the Winter GMAT competition on GMAT Club with an amazing opportunity to win over $40,000 worth of prizes!- Dec 17
09:00 AM PST
-10:00 AM PST
Join Manhattan Prep instructor Whitney Garner for a fun—and thorough—review of logic-based (non-math) problems, with a particular emphasis on Data Sufficiency and Two-Parts. - Dec 18
10:00 AM PST
-11:00 AM PST
Here is the essential guide to securing scholarships as an MBA student! In this video, we explore the various types of scholarships available, including need-based and merit-based options.
Updated on: 21 Mar 2021, 09:43
Originally posted by dancinggeometry on 22 Sep 2008, 01:01.
Last edited by Bunuel on 21 Mar 2021, 09:43, edited 2 times in total.
Last edited by Bunuel on 21 Mar 2021, 09:43, edited 2 times in total.
Renamed the topic and edited the question.
Kudos
Bookmarks
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
75% (02:13) correct
25%
(02:33)
wrong
based on 1296
sessions
History
Date
Time
Result
Not Attempted Yet
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.
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.
17 Apr 2021, 02:30
Kudos
Bookmarks
dancinggeometry
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.
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.
OFFICIAL EXPLANATION
We are given a list of problematic events, each one leading to the next, and we are asked to find a way to break the cycle of events. In order to do so, we need to find a way to alter one of these events in such a way that it will change the overall cycle so that small community hospitals are no longer losing money (at least, for these particular reasons).
(A) The reimbursement rates for specialty care are not a part of the problematic cycle; rather, the relatively low volume of specialty care at community hospitals is the problem. If the hospital is doing very little or no specialty care work in the first place, then charging more for specialty care won't help much.
(B) Even if the hospital successfully advertises its specialty care services and attracts a lot of new customers, it will not be able to serve these customers because it does not have the necessary specialists in place to provide the specialty care. This choice does not "follow through" the entire cycle.
(C) CORRECT. Since the local residents choose to patronize the nearby affluent hospitals due to the presence of specialists, they will also begin to patronize the community hospital, which is using these same specialists. The amount of high-margin specialty care will increase and the hospital will make more money, thus enabling it to continue using specialists.
(D) The mere act of educating the public about the relatively low reimbursement rates of government health plans does not directly impact the hospital or break the cycle. In order for this to work, the hospital would have to find some way to increase reimbursement rates for routine care from the government plans or convert people from government plans to private insurers that reimburse at better rates.
(E) Most of the community hospital's patients are either on government-funded plans or lack insurance altogether. Receiving more money from private insurers, therefore, is unlikely to generate enough revenue to break the cycle.
General Discussion
14 Jan 2010, 09:29
Kudos
Bookmarks
joyseychow
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.
What's wrong with [spoiler]E[/spoiler]?
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.
What's wrong with [spoiler]E[/spoiler]?
Very interesting question stimulus, the very first sentence is the conclusion and all other premises build upon one another to make the very last sentence a sub-conclusion.
Attack the sub-conclusion and that can help change the situation. In that sense, answer should be E only.
By negotiating with private insurers for higher reimbursement, routine care will start minting money for community hospitals and they'll then be able to afford specialist doctors to provide speciality care competitively with other prestigeous hospitals, thus the unfortunate cycle is broken.
