Question 1

The introduction of managed care removed a number of significant restrictions on the use of services.

Accepted Answer

Managed care often introduces more restrictions on the use of services, aiming to control healthcare costs by managing access to services, requiring pre-authorization for certain treatments, and creating networks of approved providers.

Question 2

Passage of the Balanced Budget Act brought about a number of facility closures and prompted an increased number of mergers and other affiliations.

Accepted Answer

The Balanced Budget Act of 1997 aimed to reduce Medicare spending, among other budgetary adjustments, which led to financial pressures on healthcare facilities. This resulted in closures and encouraged mergers and affiliations to pool resources and reduce costs.

Question 3

An increasing number of medical group practices and other free-standing healthcare providers are competing with each other for patients.

Accepted Answer

The healthcare industry has seen a trend where medical group practices and other free-standing healthcare providers increasingly compete for patients, driven by factors such as patient choice, insurance networks, and the availability of specialized services.

Question 4

The diminishing use of inpatient hospitalization has considerably reduced the apparent degree of competition between and among hospitals.

Accepted Answer

The diminishing use of inpatient hospitalization has not necessarily reduced competition among hospitals. Instead, it has shifted the focus of competition to other areas such as outpatient services, quality of care, specialization, and technological advancements. Hospitals continue to compete on various fronts, including price, service offerings, and convenience.

Question 5

A typical hospital is largely describable as an example of Rensis Likert's cooperative motivation system.

Accepted Answer

Rensis Likert identified four systems of management, with the fourth system, "Participative Group," being characterized by a cooperative motivation system. This system emphasizes teamwork, open communication, and participative decision-making, which are common in the collaborative environment of a typical hospital where healthcare professionals work together to provide patient care.

Question 6

Accountable care organization (ACA) is simply another designation for a health maintenance organization (HMO).

Accepted Answer

An Accountable Care Organization (ACO) is a healthcare model aimed at lowering costs and improving patient care by encouraging hospitals, doctors, and other healthcare providers to form networks that coordinate patient care, differing from a Health Maintenance Organization (HMO) which is a type of health insurance plan that typically limits coverage to care from doctors who work for or contract with the HMO.

Question 7

_ One of the factors contributing to the present problems with the country's healthcare system is the absence of sufficient external regulation.

Accepted Answer

The answer of _ One of the factors contributing to...

Question 8

Managed care generated cost-saving benefits for a time following its inception but has been unable to sustain its early promise of continued efficient and cost-effective care.

Accepted Answer

Managed care initially reduced healthcare costs through mechanisms like provider networks, negotiated rates, and utilization review. However, over time, challenges such as rising healthcare costs, regulatory complexities, and patient and provider dissatisfaction have made it difficult to sustain its early efficiency and cost-effectiveness.

Question 9

Managed care strengthened the position of the acute-care hospital as the true center of the healthcare system.

Accepted Answer

Managed care aimed to control healthcare costs and improve quality by promoting care in the most appropriate and cost-effective settings, often emphasizing primary care and outpatient services over acute-care hospital settings.

Question 10

Competition between and among healthcare organizations largely involves concern for access to care, cost of care, and the quality of healthcare service.

Accepted Answer

Competition among healthcare organizations indeed focuses on access to care, cost of care, and the quality of healthcare services, as these are key factors that influence patient choice and satisfaction.

Question 11

As in-patient hospital lengths of stay have been reduced and an increasing number of forms of care are pushed toward an outpatient environment, the number and variety of specialized healthcare settings has increased.

Accepted Answer

This trend is due to efforts to reduce healthcare costs and improve efficiency, leading to the growth of specialized outpatient services and facilities to accommodate the shift from inpatient to outpatient care.

Question 12

It is necessary for most management in health care to be production-centered.

Accepted Answer

In healthcare management, being patient-centered rather than production-centered is crucial because the primary focus is on providing quality care and meeting the needs of patients rather than on the volume of services produced.

Question 13

Regulation of healthcare activities, which began to expand significantly in the 1960s, has levelled off and in many instances has actually diminished.

Accepted Answer

Regulation of healthcare activities has continued to expand significantly over the years, adapting to new medical technologies, treatments, and the evolving landscape of healthcare delivery, rather than leveling off or diminishing.

Question 14

Many managers take a legalistic view of employee relations as opposed to a humanistic view primarily to keep themselves and their organizations out of legal trouble.

Accepted Answer

Adopting a legalistic view helps ensure compliance with laws and regulations, reducing the risk of legal issues and protecting the organization.

Question 15

It remains generally true that the best workers in a department, when promoted, will become the most effective first-line supervisors.

Accepted Answer

Promotion to a supervisory role requires a different set of skills than those used in non-supervisory roles; being the best worker does not necessarily mean one will be the most effective supervisor.

Question 16

Competition in health care essentially involves:
A) A great many anti-trust violations.
B) Necessary agreement on service pricing with competing organizations.
C) Focus on patients as the ones who select all of their own health care.
D) Organizations vying for patients by promoting improve access, lower cost, and improved service quality.

Accepted Answer

Competition in health care is primarily about organizations striving to attract patients by offering better access to services, lower costs, and improved quality of care. This competitive dynamic encourages innovation and efficiency among health care providers.

Question 17

Much of the movement into managed care was driven by:
A) Corporate employers attempting to contain healthcare benefit costs.
B) A strong desire to curb the growth of health insurance costs.
C) The government's passage of the Health Maintenance Organization (HMO) legislation.
D) All of the above.

Accepted Answer

All of the options provided are correct. Corporate employers sought to contain healthcare benefit costs, there was a general desire to curb the growth of health insurance costs, and the government's passage of HMO legislation all contributed to the movement into managed care.

Question 18

The marketing process as concerns healthcare organizations essentially involves:
A) Concentrated advertising promoting one's own strengths and pointing out the competition's weaknesses.
B) Guiding potential customers in differentiating the organization's products and services from those of competing organizations.
C) Establishing preferential relationships with health insurers.
D) Promoting one's own organization as better than the others serving the same market area.

Accepted Answer

Guiding potential customers in differentiating an organization's products and services from those of competitors is a core aspect of marketing in healthcare. This involves highlighting unique features, benefits, and value propositions to inform and attract potential patients or clients, rather than focusing on competitors' weaknesses or establishing preferential relationships with insurers.

Question 19

One significant difference between health care and industry at large is:
A) There are no useful skills or occupations that can cross from health care to non-health business.
B) All health care deals with its customers face-to-face; all non-health business deals with customers only remotely.
C) All aspects of health care require more educated employees than all other businesses.
D) Health care is subject to more external regulation than the majority of other businesses.

Accepted Answer

Health care is indeed subject to more external regulation than most other businesses, due to the critical nature of its services and the need to ensure patient safety and privacy.

Question 20

Under managed care, the primary care physician:
A) Has essentially been placed in the role of gatekeeper for the healthcare system, in many instances having to make formal referrals for patients to access certain services.
B) Is now fulfilling a significantly smaller role than before managed care.
C) Has in most instances been required to become members of group practices.
D) Is no longer involved in determining what services beyond primary care apatient may access.

Accepted Answer

The primary care physician acts as a gatekeeper in managed care systems, controlling access to specialized services by requiring referrals. This role emphasizes the importance of primary care physicians in managing patient care and ensuring that referrals to specialists are appropriate.

Quiz 2: The Volatile Healthcare Environment