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The United States hospital industry is an unusual market in that

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The United States hospital industry is an unusual market in that  [#permalink]

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New post Updated on: 11 Aug 2019, 10:54
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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 produce's 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. 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



2. 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.



3. 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


Originally posted by AN225 on 20 Apr 2011, 13:14.
Last edited by SajjadAhmad on 11 Aug 2019, 10:54, edited 4 times in total.
Updated.
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Re: The United States hospital industry is an unusual market in that  [#permalink]

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New post 02 Mar 2013, 00:21
1. The passage is primarily concerned with

The theoretical literature was discussed on about 80 percent of the passage.

A is wrong. The passage is about discussing the views of the theoretical literature on efficiency on nonprofit and for-profit hospitals. Advantage was only mentioned in the last sentence of the passage. One technique in determining the primary purpose is to ensure that it captures the authors point. That point should be spread out in the passage.

B is wrong. The obstacles were not assessed. They were just mentioned to describe what's the content of the literature.

C is the correct answer. (C) describing conflicting assessments in the theoretical literature concerning particular types of hospitals

D is wrong. The author went on and on about the conflicting views of the literature until the second paragraph. The last few sentences were additional comments of some scholars. What stand did the author challenge about the literature? It's hard to say. Then, it is not the purpose then.

(E) heck no!

2. The passage suggests which of the following about the managers mentioned In the highlighted text?

(A) They don't reflect hospital owners priority. False.
(B) The author did not assert that they are more likely to do such. Not mentioned.
(C) The author thinks this is their less likely priority.
(D) Correct. They do not reflect hospital owners priority.
(E) This is too strong. The passage says that they may not always. do not is stronger than the passage.


3. The author mentions duplication between departments primarily in order to

(A) the passage suggests that they tend to go overboard eight their service. False.
(B) what managerial Freedom? Heck no!
(C) the author made no recommendation. False.

D is correct....
(D) suggest a way in which nonprofit hospitals may fail to achieve maximum financial efficiency

(E) the literature says provide same service as for profit... Not more...false.
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Re: The United States hospital industry is an unusual market in that  [#permalink]

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New post 27 Nov 2015, 04:03
1. The passage is primarily concerned with
(A) discussing the advantages of increased efficiency in a particular type of hospital
not okie, no mention to advantages of increased efficiency ....
(B) assessing obstacles to efficiency in a particular type of hospital
obstables .... not okie
(C) describing conflicting assessments in the theoretical literature concerning particular types of hospitals
okie, 2nd paragraph
(D) Challenging evidence used to support an argument advanced in recent theoretical literature concerning a particular type of hospital
not chanlleging
(E)emphasizing the advantages of one particular type of hospital over another type
no advantages


2. The passage suggests which of the following about the managers mentioned In the highlighted text?
. 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.

(A) They have generally been motivated to streamline hospital services as a result of direct intervention by hospital owners.
motiveted ... result ... direct intervention ... -- not okie
(B)They are more likely than managers of nonprofit hospitals to use unnecessary amounts of resources to provide services.
Conversely .... remain ---> change meaning
(C) Their most important self-acknowledged goal is to achieve maximum financial efficiency so that hospitals show a profit.
inverted meaning
(D) Their decisions regarding services provided by their hospitals may not reflect hospital owners' priorities.
okie
(E) They do not place a high priority on maximizing profits, despite their desire to achieve efficiency.
too strong meaning


3. The author mentions duplication between departments primarily in order to
(A) illustrate an area in which nonprofit hospitals fail to provide adequate services
not okie
(B) describe the outcome of nonprofit hospitals' emphasis on maintaining managerial freedom
outcome of nonprofit hospitals' emphasis ... not okie
(C) recommend a particular change that would allow nonprofit hospitals to streamline their services
recommend a particular change ... recommend : not okie
(D) suggest a way in which nonprofit hospitals may fail to achieve maximum financial efficiency
??? okie
(E) explain why nonprofit hospitals may be able to provide more services than for-profit hospitals
not okie
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Re: The United States hospital industry is an unusual market in that  [#permalink]

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New post 17 May 2018, 08:55
AN225 wrote:
The United States hospital industry is an unusual market in that nonprofit and for-profit produce's 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. 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



2. 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.



3. 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




Hi,
I am not able to understand the passage completely. few lines of 1st paragraph:
"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."
Please explain me the above lines. Also, If I am able to solve questions without understanding the passage, it that correct approach? will it help in long run ?
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Re: The United States hospital industry is an unusual market in that  [#permalink]

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New post 11 Aug 2019, 10:54
+1 Kudos to posts containing answer explanation of all questions
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Re: The United States hospital industry is an unusual market in that   [#permalink] 11 Aug 2019, 10:54
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