MHA 707 EXAM C 2026 STUDY GUIDE
COMPLETE HEALTHCARE ADMINISTRATION
CONCEPTS AND PRACTICE QUESTIONS
◉ Adverse Selection. Answer: the situation in which one party to a
transaction takes advantage of knowing more than the other party
to the transaction
the sicker people likely want more insurance, compared to those
who are healthy
◉ Pooling of Risk. Answer: Allows individuals to share risk, i.e.,
insurance companies
◉ National Health Expenditure Accounts (NHEA). Answer: Provides
official estimates of health care spending in the US. It measures
health care consumption and health care investment.
◉ NHEA Benefits. Answer: Comprehensive: includes all major
components of health care system in unified, mutually exclusive, and
exhaustive structure
Multidimensional: encompasses expenditures as well as payers
,Consistent: applies a common set of definitions that permits
longitudinal comparisons
Published by DHHS
◉ Accounts in the NHEA. Answer: National Health Expenditures:
NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
◉ National Health Expenditures: NHE. Answer: all health care
consumption and investments in medical structures and equipment
and noncommercial health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy
(buildings, research, equipment)
◉ Health Consumption Expenditures: HCE. Answer: a subset of NHE,
includes personal health care spending, government administration
and net cost of private health insurance and public health activities
◉ Personal Health Care: PHC. Answer: subset of HCE, including all
medical goods and service that's used to diagnose, treat, and prevent
health problems of a specific person
, ◉ How much NHE spent on Health Care?. Answer: $3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
◉ Largest contributors to the Personal Health Care (PHC). Answer:
hospitalization, physician services, Rx, other health care goods and
services
◉ What accounted for the largest share of NHE?. Answer: Hospital
Care: 33% of spending
Professional Services: 20% doctors NHE
Retail Rx: 10.5%
◉ Three Categories of PHC increased as a share of NHE. Answer:
Health Residential and Personal Care: 5.2% of NHE
Net Cost of Private Health Ins: 6.6% of NHE
Home Health Care: 2.8% of NHE
◉ Chronic Disease and Mental Health Diseases in NHE (percentage).
Answer: 90%
Among the top 5% of users account for about half of the spending
COMPLETE HEALTHCARE ADMINISTRATION
CONCEPTS AND PRACTICE QUESTIONS
◉ Adverse Selection. Answer: the situation in which one party to a
transaction takes advantage of knowing more than the other party
to the transaction
the sicker people likely want more insurance, compared to those
who are healthy
◉ Pooling of Risk. Answer: Allows individuals to share risk, i.e.,
insurance companies
◉ National Health Expenditure Accounts (NHEA). Answer: Provides
official estimates of health care spending in the US. It measures
health care consumption and health care investment.
◉ NHEA Benefits. Answer: Comprehensive: includes all major
components of health care system in unified, mutually exclusive, and
exhaustive structure
Multidimensional: encompasses expenditures as well as payers
,Consistent: applies a common set of definitions that permits
longitudinal comparisons
Published by DHHS
◉ Accounts in the NHEA. Answer: National Health Expenditures:
NHE
Health Consumption Expenditures: HCE
Personal Health Care: PHC
◉ National Health Expenditures: NHE. Answer: all health care
consumption and investments in medical structures and equipment
and noncommercial health services and biomedical research
NHE - HCE = Amount of investment in the medical sector of economy
(buildings, research, equipment)
◉ Health Consumption Expenditures: HCE. Answer: a subset of NHE,
includes personal health care spending, government administration
and net cost of private health insurance and public health activities
◉ Personal Health Care: PHC. Answer: subset of HCE, including all
medical goods and service that's used to diagnose, treat, and prevent
health problems of a specific person
, ◉ How much NHE spent on Health Care?. Answer: $3.49 Trillion
Per capita amount: over $10k
% of GDP: 18%
Buying Power: $1,200 when adjusted by CPI
◉ Largest contributors to the Personal Health Care (PHC). Answer:
hospitalization, physician services, Rx, other health care goods and
services
◉ What accounted for the largest share of NHE?. Answer: Hospital
Care: 33% of spending
Professional Services: 20% doctors NHE
Retail Rx: 10.5%
◉ Three Categories of PHC increased as a share of NHE. Answer:
Health Residential and Personal Care: 5.2% of NHE
Net Cost of Private Health Ins: 6.6% of NHE
Home Health Care: 2.8% of NHE
◉ Chronic Disease and Mental Health Diseases in NHE (percentage).
Answer: 90%
Among the top 5% of users account for about half of the spending
