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13 Oct 2022, 05:59
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United States Hospitals have traditionally relied primarily on revenues from paying patients to offset losses from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients to amounts at or below actual costs.
Which of the following conclusions is best supported by the information above?
(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
We can't infer anything about reach of patients.
(B) If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it.
Conclusion. Before they used to cover the unreimbursed amount from the patient that are paying. Now everyone is having insurance. Hence, there are chances that there would be more unreimbursed amount since paying patients are very low now. So to cover the unreimbursed amount – deny services or face losses
(C) Some patients have incomes too high for eligibility for governmental health insurance but are unable to afford private insurance for hospital care.
Type of insurance/affordability not a conclusion
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
No the reimbursable amount is at or below actual cost. There is a possibility when the hospitals reduce cost, insurance company don't maintain the current level.
(E) Even though philanthropic donations have traditionally provided some support for the the hospitals, such donations are at present declining.
We can't infer anything about other sources of donations.
Which of the following conclusions is best supported by the information above?
(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
We can't infer anything about reach of patients.
(B) If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it.
Conclusion. Before they used to cover the unreimbursed amount from the patient that are paying. Now everyone is having insurance. Hence, there are chances that there would be more unreimbursed amount since paying patients are very low now. So to cover the unreimbursed amount – deny services or face losses
(C) Some patients have incomes too high for eligibility for governmental health insurance but are unable to afford private insurance for hospital care.
Type of insurance/affordability not a conclusion
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
No the reimbursable amount is at or below actual cost. There is a possibility when the hospitals reduce cost, insurance company don't maintain the current level.
(E) Even though philanthropic donations have traditionally provided some support for the the hospitals, such donations are at present declining.
We can't infer anything about other sources of donations.
21 May 2023, 02:10
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The passage explains that United States hospitals have traditionally relied on revenues from paying patients to offset losses from unreimbursed care. However, insurers have recently started limiting their payments to hospitals for insured patients, often capping the payments at or below the actual costs. Based on this information, let's evaluate the conclusions:
(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
This conclusion is not directly supported by the information provided. While the passage mentions the reliance on paying patients, it doesn't specifically address the availability or affordability of expensive medical procedures for low-income patients.
(B) If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it.
This conclusion is directly supported by the passage. It states that hospitals rely on revenues from paying patients to offset losses from unreimbursed care. If hospitals cannot raise additional income, they will have to make choices such as denying some care or incurring losses if they provide it.
(C) Some patients have incomes too high for eligibility for government health insurance but are unable to afford private insurance for hospital care.
The passage doesn't provide information about patients' income levels or their eligibility for insurance. This conclusion goes beyond the scope of the passage and cannot be directly supported.
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
The passage doesn't discuss the relationship between hospitals reducing costs and insurance companies increasing reimbursement. This conclusion introduces a speculative scenario that is not supported by the given information.
(E) Even though philanthropic donations have traditionally provided some support for the hospitals, such donations are at present declining.
The passage does not provide any information about the current state of philanthropic donations or their decline. This conclusion goes beyond the information given and cannot be directly supported.
Based on the analysis, the conclusion best supported by the information above is (B) – "If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it." The passage indicates that hospitals rely on revenues from paying patients to offset losses from unreimbursed care, suggesting that without additional income, hospitals will face the choice of denying some care or incurring losses.
(A) Although the advance of technology has made expensive medical procedures available to the wealthy, such procedures are out of the reach of low-income patients.
This conclusion is not directly supported by the information provided. While the passage mentions the reliance on paying patients, it doesn't specifically address the availability or affordability of expensive medical procedures for low-income patients.
(B) If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it.
This conclusion is directly supported by the passage. It states that hospitals rely on revenues from paying patients to offset losses from unreimbursed care. If hospitals cannot raise additional income, they will have to make choices such as denying some care or incurring losses if they provide it.
(C) Some patients have incomes too high for eligibility for government health insurance but are unable to afford private insurance for hospital care.
The passage doesn't provide information about patients' income levels or their eligibility for insurance. This conclusion goes beyond the scope of the passage and cannot be directly supported.
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of reimbursement, thereby providing more funds for unreimbursed care.
The passage doesn't discuss the relationship between hospitals reducing costs and insurance companies increasing reimbursement. This conclusion introduces a speculative scenario that is not supported by the given information.
(E) Even though philanthropic donations have traditionally provided some support for the hospitals, such donations are at present declining.
The passage does not provide any information about the current state of philanthropic donations or their decline. This conclusion goes beyond the information given and cannot be directly supported.
Based on the analysis, the conclusion best supported by the information above is (B) – "If hospitals do not find ways of raising additional income for unreimbursed care, they must either deny some of that care or suffer losses if they give it." The passage indicates that hospitals rely on revenues from paying patients to offset losses from unreimbursed care, suggesting that without additional income, hospitals will face the choice of denying some care or incurring losses.
14 Nov 2023, 09:18
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OFFICIAL EXPLANATION
The provided information could clearly serve as evidence for what conclusion? The provided information implies that in the United States, insurers and uninsured patients who can afford the care have traditionally offset hospitals' losses from unreimbursed care, by paying hospitals amounts above the cost of treating each fully insured patient. But we are also told that insurers have recently stopped this practice. Together, these observations suggest that surplus revenue from paying patients is no longer sufficient to offset the hospitals' losses from unreimbursed care.
- The information says nothing to suggest that advancing technology has made expensive medical procedures available to the wealthy. Furthermore, since low-income patients might have governmental insurance to pay for expensive medical procedures, the information does not imply that such procedures are out of their reach.
- Correct. As explained above, the information suggests that hospitals' traditional source of surplus revenue is no longer sufficient to offset the cost of unreimbursed care. This implies that hospitals must either find another way to pay for unreimbursed care, provide less of it, or lose money by providing it.
- Although the information implies that some patients are uninsured, it does not say anything to suggest that their income levels are the reason they are uninsured.
- If anything, the information suggests that if hospitals reduced their costs, insurance companies would further reduce their reimbursement levels, in keeping with the companies' new policy of strictly limiting reimbursement levels to amounts at or below hospitals' actual costs.
- The passage says nothing about philanthropic donations, and does not imply that such donations have ever traditionally supported hospitals, or that donations are now declining.
The correct answer is B.
