MHA 710 TEST 4 CERTIFICATION
EVALUATION TEST 2026 FULL SOLUTION
QUESTIONS GRADED A+
●● The amount that Medicare pays a hospital for treating a Medicare
patient is determined:
a. at the time of admission to the hospital.
b. after the hospital bill is reviewed by Medicare auditors.
c. after medical services are provided.
d. before the patient sees a physician.
e. at the point when the diagnosis is made.
Answer: at the point when the diagnosis is made.
●● Which of the following statements is true about cost shifting in
hospitals?
a. Regardless of payer mix, hospitals are taking full advantage of their
bargaining power with payers who are able to cost shift.
b. Classic Ramsey pricing can be interpreted in different ways, leading
researchers into arguing that if it looks like cost shifting, it probably is
cost shifting.
c. The ability to cost shift depends on a hospital's payer mix.
d. The positive correlation coefficient between cost-to-payment ratios
for various payers indicates that cost shifting is taking place.
,e. Capacity-constrained medical providers are not able to cost shift.
Answer: The ability to cost shift depends on a hospital's payer mix.
●● If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of
employment be?
a. W0 and E0
b. W0 and E1
c. W1 and E1
d. W0 and E2
e. W2 and E0
Answer: W1 and E1
●● Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services since
the mid-1980s?
a. There has been no noticeable trend in either inpatient or outpatient
services.
b. Both inpatient and outpatient services have been declining.
c. Outpatient services have been growing, while inpatient services have
been declining.
d. Outpatient services have been declining, while inpatient services have
been growing.
e. Both inpatient and outpatient services have been growing.
, Answer: Outpatient services have been growing, while inpatient services
have been declining.
●● The expanded use of prospective payment in hospitals has changed
the nature of competition in that market. Which of the following
statements is true?
a. Savings from prospective payments are substantial and due primarily
to fewer hospital admissions and shorter hospital stays.
b. The switch to diagnosis-related group payments in the 1980s has
actually had little effect on competition because so much of hospital
spending comes from the federal government.
c. After an initial drop in operating margins shortly after the introduction
of diagnosis-related groups (DRGs), Medicare margins have improved
and most hospitals are generating 5-8 percent surpluses on all their
Medicare business.
d. Because patients pay such a small percentage of hospital bills,
prospective payment has had little effect on hospital operations.
Answer: Savings from prospective payments are substantial and due
primarily to fewer hospital admissions and shorter hospital stays.
●● Starting salaries for female obstetricians/gynecologists are higher
than those of male obstetricians/gynecologists . What is the best
explanation for this?
a. There are more males in obstetrics/gynecology residency programs
than females.
EVALUATION TEST 2026 FULL SOLUTION
QUESTIONS GRADED A+
●● The amount that Medicare pays a hospital for treating a Medicare
patient is determined:
a. at the time of admission to the hospital.
b. after the hospital bill is reviewed by Medicare auditors.
c. after medical services are provided.
d. before the patient sees a physician.
e. at the point when the diagnosis is made.
Answer: at the point when the diagnosis is made.
●● Which of the following statements is true about cost shifting in
hospitals?
a. Regardless of payer mix, hospitals are taking full advantage of their
bargaining power with payers who are able to cost shift.
b. Classic Ramsey pricing can be interpreted in different ways, leading
researchers into arguing that if it looks like cost shifting, it probably is
cost shifting.
c. The ability to cost shift depends on a hospital's payer mix.
d. The positive correlation coefficient between cost-to-payment ratios
for various payers indicates that cost shifting is taking place.
,e. Capacity-constrained medical providers are not able to cost shift.
Answer: The ability to cost shift depends on a hospital's payer mix.
●● If the market were perfectly competitive instead of dominated by a
monopsonist, what would the equilibrium wage and level of
employment be?
a. W0 and E0
b. W0 and E1
c. W1 and E1
d. W0 and E2
e. W2 and E0
Answer: W1 and E1
●● Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services since
the mid-1980s?
a. There has been no noticeable trend in either inpatient or outpatient
services.
b. Both inpatient and outpatient services have been declining.
c. Outpatient services have been growing, while inpatient services have
been declining.
d. Outpatient services have been declining, while inpatient services have
been growing.
e. Both inpatient and outpatient services have been growing.
, Answer: Outpatient services have been growing, while inpatient services
have been declining.
●● The expanded use of prospective payment in hospitals has changed
the nature of competition in that market. Which of the following
statements is true?
a. Savings from prospective payments are substantial and due primarily
to fewer hospital admissions and shorter hospital stays.
b. The switch to diagnosis-related group payments in the 1980s has
actually had little effect on competition because so much of hospital
spending comes from the federal government.
c. After an initial drop in operating margins shortly after the introduction
of diagnosis-related groups (DRGs), Medicare margins have improved
and most hospitals are generating 5-8 percent surpluses on all their
Medicare business.
d. Because patients pay such a small percentage of hospital bills,
prospective payment has had little effect on hospital operations.
Answer: Savings from prospective payments are substantial and due
primarily to fewer hospital admissions and shorter hospital stays.
●● Starting salaries for female obstetricians/gynecologists are higher
than those of male obstetricians/gynecologists . What is the best
explanation for this?
a. There are more males in obstetrics/gynecology residency programs
than females.
