Insight Hospital, a private hospital, is a major employer in the Bezel

Question

Insight Hospital, a private hospital, is a major employer in the Bezelto area, but health regulations will force it to close if it continues discarding its medical wastes in the nearby river. However, cleaning up its medical waste in an environmentally friendly manner would be so expensive that the hospital will close unless it receives financial aid from the government. In order to prevent a major increase in local unemployment, the Bezelto government is considering working out a bill to fund fifty percent of the cleanup costs.

Which of the following would be most important for the Bezelto government to determine before deciding whether to fund half of the cleanup costs?

(A) Whether the company that owns the hospital would open a new hospital in another area if the present hospital were closed

(B) Whether the hospital would employ far fewer hospital employees when updated than it does now

(C) Whether the amount of medical waste presently being released into the local river by the hospital is significant enough to constitute a health hazard for local residents

(D) Whether the majority of the medical waste generated by the hospital is released outside the Bezelto area

(E) Whether the hospital would be generating more medical waste after the cleanup has begun than it does now

Source: GMATPill

Rajdeep1989 · Answer

The decision of bezelto govt of formulating the bill is concerned with unemployment and hence choice is B.

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AbhishekDhanraJ72 · Answer

why not A?? what if they build new hospitals and employ as same no. of employee??

CrackverbalGMAT · Answer

Hi Abhishek

Option (A) talks about opening "a new hospital in  another area ". This could provide employment in that new area, of course.

However, the stimulus is concerned with preventing "a major increase in  local unemployment ". Whether the company that owns the hospital opens a new hospital in another area or not does not impact the local unemployment that would accompany the closure of this hospital in Bezelto. Therefore, the answer to option (A) does not help us in assessing whether the government should fund half the cleanup costs of the hospital.

Hope this helps.

Akash6319 · Answer

Option A: New information, can be ignored.
Option B: Seems to be the answer, but bill is related to not increase in unemployment of that area.- Best Suites
Option C: New Information, neglect it.
Option D: No clue regarding outside of the area.
Option E: We can't predict the amount of waste generated.

Atharva29 · Answer

(A) Whether the company that owns the hospital would open a new hospital in another area if the present hospital were closed
--> Will the company open a small hospital (lower employment) or bigger hospital (higher employment) NOT MENTIONED. So half information, also will it allow the people from current locality to work there is not mentioned.

(B) Whether the hospital would employ far fewer hospital employees when updated than it does now
---> This option is directly talking about employee head count. Let's evaluate
YES the hospital would employ far fewer hospital employees when updated than it does now 
NO the hospital would not employ far fewer hospital employees when updated than it does now

(C) Whether the amount of medical waste presently being released into the local river by the hospital is significant enough to constitute a health hazard for local residents
--> talks about wastage problem not employee count

(D) Whether the majority of the medical waste generated by the hospital is released outside the Bezelto area
--> talks about wastage problem not employee count

(E) Whether the hospital would be generating more medical waste after the cleanup has begun than it does now
--> talks about wastage problem not employee count

Atharva29 · Answer

(A) Whether the company that owns the hospital would open a new hospital in another area if the present hospital were closed
--> Will the company open a small hospital (lower employment) or bigger hospital (higher employment) NOT MENTIONED. So half information, also will it allow the people from current locality to work there is not mentioned.

(B) Whether the hospital would employ far fewer hospital employees when updated than it does now
---> This option is directly talking about employee head count. Let's evaluate
YES the hospital would employ far fewer hospital employees when updated than it does now 
NO the hospital would not employ far fewer hospital employees when updated than it does now

(C) Whether the amount of medical waste presently being released into the local river by the hospital is significant enough to constitute a health hazard for local residents
--> talks about wastage problem not employee count

(D) Whether the majority of the medical waste generated by the hospital is released outside the Bezelto area
--> talks about wastage problem not employee count

(E) Whether the hospital would be generating more medical waste after the cleanup has begun than it does now
--> talks about wastage problem not employee count

parthh1234 · Answer

What does "When updated" mean in Option B? 
I'm not able to properly comprehend it. Or should I just ignore that part and try to understand the rest.  Bunuel   CrackverbalGMAT

egmat · Answer

"When updated" = "After the hospital completes its environmental cleanup/modernization"
Think of "update" like updating software — the hospital gets "updated" with new waste management systems to meet regulations.

Why This Matters: 
The government wants to prevent unemployment, not just save the hospital.
If the "updated" hospital needs fewer workers (maybe new systems are automated?), then:
 
 Hospital lives ✓ 
 Jobs still die ✗ 
 Plan fails ✗

(B) tests whether the plan actually achieves its goal.

shanalshekhar · Answer

Option C will try to find out whether to follow environmentally friendly manner to discard waste. If not, then it will save hospital from putting up the bill hence save it from winding up and prevent unemployment.
Help please

bb · Answer

I do not see a question. Help with what?

guddo · Answer

The government’s stated goal is to prevent a major increase in local unemployment. So the key question is whether keeping the hospital open by subsidizing cleanup will actually preserve jobs in Bezelto.

Choice B is the most important because if the hospital would employ far fewer people after the cleanup (for example due to restructuring, outsourcing, automation, or downsizing tied to the new process), then paying half the cleanup costs might still fail to prevent a major increase in unemployment.

Why the others matter less for this decision
 
A A new hospital in another area does not prevent unemployment in Bezelto.
 C The regulations will force closure if the dumping continues, regardless of whether the current dumping level is a health hazard.
 D Even if most waste ends up outside Bezelto, the issue is still compliance with regulations to keep this hospital open as an employer in Bezelto.
 E Whether it generates more waste later is not the key to whether funding now prevents job losses.

guddo · Answer

C is irrelevant to the decision because the hospital will be forced to close if it keeps dumping, regardless of how dangerous the dumping is. So the government’s only real choice is whether paying part of the cleanup will actually keep the hospital open and preserve jobs. That is why B matters, not C.

Insight Hospital, a private hospital, is a major employer in the Bezel

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Insight Hospital, a private hospital, is a major employer in the Bezel

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