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MHA 707 EXAM C 2025, HEALTHCARE ADMINISTRATION EXAM, MHA
TEST BANK, EXAM C QUESTIONS AND ANSWERS, MHA 707 STUDY
GUIDE, HEALTH POLICY EXAM PREP, MHA VERIFIED ANSWERS
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%
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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
Medical Conditions and Parentages on Americans - ANSWER-90% of Americans have 1 risk
factor, 52% have 2 or more highest proportion in impoverished and racial/ethnic minorities
Americans Stat on Health Ins Coverage - ANSWER-92% of the US population have some sort of
ins (8% or 26.4 M uninsured)
Cost/Cost Plus - ANSWER-how hospitals/providers describe payments received for services they
have already provided. The organization tracks all the costs associated with each customer and
then asks to be paid that amount. Contracts specific that the organization will be reimbursed for
actual cost plus an additional percentage of cost (includes built in profit)
Moral Hazard - ANSWER-When the act of insuring an event increases the likelihood that the
event will happen
behaving different when you know someone is taking the risk (induced demand)
Adverse Selection - ANSWER-the situation in which one party to a transaction takes advantage
of knowing more than the other party to the transaction
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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
How Money is Paid to Health Care Providers - ANSWER-Cost/Cost Plus
Time and Materials
Fee for Service
Fixed Price
Capitation
Value
Time and Materials - ANSWER-A contract type where the seller charges the
MHA 707 EXAM C 2025, HEALTHCARE ADMINISTRATION EXAM, MHA
TEST BANK, EXAM C QUESTIONS AND ANSWERS, MHA 707 STUDY
GUIDE, HEALTH POLICY EXAM PREP, MHA VERIFIED ANSWERS
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%
,2|Page
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
Medical Conditions and Parentages on Americans - ANSWER-90% of Americans have 1 risk
factor, 52% have 2 or more highest proportion in impoverished and racial/ethnic minorities
Americans Stat on Health Ins Coverage - ANSWER-92% of the US population have some sort of
ins (8% or 26.4 M uninsured)
Cost/Cost Plus - ANSWER-how hospitals/providers describe payments received for services they
have already provided. The organization tracks all the costs associated with each customer and
then asks to be paid that amount. Contracts specific that the organization will be reimbursed for
actual cost plus an additional percentage of cost (includes built in profit)
Moral Hazard - ANSWER-When the act of insuring an event increases the likelihood that the
event will happen
behaving different when you know someone is taking the risk (induced demand)
Adverse Selection - ANSWER-the situation in which one party to a transaction takes advantage
of knowing more than the other party to the transaction
, 3|Page
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
How Money is Paid to Health Care Providers - ANSWER-Cost/Cost Plus
Time and Materials
Fee for Service
Fixed Price
Capitation
Value
Time and Materials - ANSWER-A contract type where the seller charges the
