New Project RC Butler 2019 - Practice 2 RC Passages Everyday Passage # 261, Date : 11-Aug-2019 This post is a part of New Project RC Butler 2019 . Click here for Details The United States hospital industry is an unusual market in that nonprofit and for-profit producers exist simultaneously. Theoretical literature offers conflicting views on whether nonprofit hospitals are less financially efficient. Theory suggests that nonprofit hospitals are so much more interested in offering high-quality service than in making money that they frequently input more resources to provide the same output of service as for-profit hospitals. This priority might also often lead them to be less vigilant in streamlining their services—eliminating duplication between departments , for instance. Conversely, while profit motive is thought to encourage for-profit hospitals to attain efficient production, most theorists admit that obstacles to that efficiency remain. For-profit hospital managers , for example, generally work independently of hospital owners and thus may not always make maximum financial efficiency their highest priority. The literature also suggests that widespread adoption of third-party payment systems may eventually eliminate any such potential differences between the two kinds of hospitals. The same literature offers similarly conflicting views of the efficiency of nonprofit hospitals from a social welfare perspective. Newhouse (1970) contends that nonprofit hospital managers unnecessarily expand the quality and quantity of hospital care beyond the actual needs of the community, while Weisbrod (1975) argues that nonprofit firms — hospitals included — contribute efficiently to community welfare by providing public services that might be inadequately provided by government alone. 1 A 1. Which of the following best describes the overall content of the second paragraph of the passage? (A) It describes views concerning a particular aspect of one of the types of hospitals discussed earlier. (B) It describes an additional benefit of one of the types of hospitals discussed earlier. (C) It offers a potential solution to a problem inherent in the structure of the United States hospital industry. (D) It provides an additional contrast between the two types of hospitals discussed earlier. (E) It describes one of the consequences of the character of the United States hospital market. 2 E 2. According to the passage, Newhouse's view of the social welfare efficiency of nonprofit hospitals differs from Weisbrod's view in that Newhouse (A) contends that government already provides most of the services that communities need (B) argues that for-profit hospitals are better at meeting actual community needs than are nonprofit hospitals (C) argues that nonprofit hospitals are likely to spend more to provide services that the community requires than for-profit hospitals are likely to spend (D) argues that nonprofit hospitals ought to expand the services they provide to meet the community's demands (E) believes that the level of care provided by nonprofit hospitals is inappropriate, given the community's requirements 3 D 3. The passage suggests which of the following about the managers mentioned in the highlighted text? (A) They have generally been motivated to streamline hospital services as a result of direct intervention by hospital owners. (B) They are more likely than managers of nonprofit hospitals to use unnecessary amounts of resources to provide services. (C) Their most important self-acknowledged goal is to achieve maximum financial efficiency so that hospitals show a profit. (D) Their decisions regarding services provided by their hospitals may not reflect hospital owners' priorities. (E) They do not place a high priority on maximizing profits, despite their desire to achieve efficiency. 4 C 4. The passage is primarily concerned with (A) discussing the advantages of increased efficiency in a particular type of hospital (B) assessing obstacles to efficiency in a particular type of hospital (C) describing conflicting assessments in the theoretical literature concerning particular types of hospitals (D) challenging evidence used to support an argument advanced in recent theoretical literature concerning a particular type of hospital (E) emphasizing the advantages of one particular type of hospital over another type 5 D 5. The author mentions duplication between departments primarily in order to (A) illustrate an area in which nonprofit hospitals fail to provide adequate services (B) describe the outcome of nonprofit hospitals' emphasis on maintaining managerial freedom (C) recommend a particular change that would allow nonprofit hospitals to streamline their services (D) suggest a way in which nonprofit hospitals may fail to achieve maximum financial efficiency (E) explain why nonprofit hospitals may be able to provide more services than for-profit hospitals Source : JOURNAL ARTICLE Hospital Ownership and Technical Inefficiency James F. Burgess, Jr. and Paul W. Wilson Management Science Vol. 42, No. 1 (Jan., 1996), pp. 110-123 Published by: INFORMS https://www.jstor.org/stable/2633019 Page Count: 14

JarvisR How did you complete this in 5:30 mins ? It took me 8:16 mins Does it indicate I am slow? Edit: I am trying to post this here https://gmatclub.com/forum/the-united-states-hospital-industry-is-an-unusual-market-in-that-112635.html , however, it gets posted here https://gmatclub.com/forum/the-united-states-hospital-industry-is-an-unusual-market-in-that-112635-20.html#p2560934 . SajjadAhmad Please advise. Thanks!

Where is the issue? this is the same page in both of the links.

Sorry, but both webpages are different. I can't see the passage and other's comments on https://gmatclub.com/forum/the-united-s ... l#p2589088 . I can only see my post and your reply. The passage and other's comments can be seen here https://gmatclub.com/forum/the-united-s ... 12635.html But I can't see my post here.

Ahh, You are on page number 2 and you have to go to page #1 to see the questions. See the below screen shot. 12.jpg Regards

SajjadAhmad I am really sorry to bother you for my stupid concern. Thank you for your time and your patience!!

In Q2 option C is a better choice than D?

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