USP 143 Exam 2 questions n answers
passed
legislative branch - correct answer ✔✔legate authority to executive branch to make and
implement rules; makes law
executive branch - correct answer ✔✔rulemaking; authority is delegated by legislative branch,
state or federal agencies, creates framework of regulations/rules that implement the law
regulatory changes of law - correct answer ✔✔rulemaking process includes procedures for
changing the rules/regulations; sometimes significant changes have to go back to the legislative
branch to clarify
current system of payment - correct answer ✔✔hybrid system of public and private payment.
chiefly private (no-govt) provision of health care services
economic profit - correct answer ✔✔the difference between the revenue received from sales
and the explicit costs of producing its goods and services
deadweight loss - correct answer ✔✔a cost to society created by market inefficiency, which
occurs when supply and demand are out of equilibrium - producers producing less of a good
than society desires (usually through artificial price protection)
deadweight loss in health care - correct answer ✔✔providers are contributing less in tax
revenue, medical care, or overall social benefit because of an artificial regulatory allowance or
protection
, nonprofit hospitals - correct answer ✔✔viewed as charities by the IRS (provide benefit to
community), don't pay federal income or state and local property taxes
for profit hospitals - correct answer ✔✔owned either by investors or the shareholders of a
publicly-traded company
community health needs assessment requirement for nonprofit hospitals - correct answer
✔✔required to conduct a CHNA at least once every 3 years
rent-seeking - correct answer ✔✔an individual or an entity seeks to increase their own wealth
without creating any benefits or wealth to the society; this reduces economic efficiency through
inefficient allocation of resources and commonly leads to other damaging consequences such as
rise in income inequality, lost govt revenue, and a decrease in competition
manipulation of the distribution of economic resources (rent-seeking) - correct answer
✔✔artificially enhancing wealth/economic return through legal protection (law and regulation)
rent-seeking in health care - correct answer ✔✔nonprofit health systems keeping IRS nonprofit
status and not paying taxes; patent protection for pharmaceuticals to prevent competition and
keep prices high
scope of practice - correct answer ✔✔decreasing the labor cost of health care
painful cost control - correct answer ✔✔rationing (who gets what procedure, etc), eliminating
cost-ineffective procedures
painless cost control - correct answer ✔✔(1) eliminating ineffective or inappropriate care; (2)
eliminate administrative waste; (3) innovation and greater productivity (telehealth, procedures,
reduced infection rates); (4) prevention
passed
legislative branch - correct answer ✔✔legate authority to executive branch to make and
implement rules; makes law
executive branch - correct answer ✔✔rulemaking; authority is delegated by legislative branch,
state or federal agencies, creates framework of regulations/rules that implement the law
regulatory changes of law - correct answer ✔✔rulemaking process includes procedures for
changing the rules/regulations; sometimes significant changes have to go back to the legislative
branch to clarify
current system of payment - correct answer ✔✔hybrid system of public and private payment.
chiefly private (no-govt) provision of health care services
economic profit - correct answer ✔✔the difference between the revenue received from sales
and the explicit costs of producing its goods and services
deadweight loss - correct answer ✔✔a cost to society created by market inefficiency, which
occurs when supply and demand are out of equilibrium - producers producing less of a good
than society desires (usually through artificial price protection)
deadweight loss in health care - correct answer ✔✔providers are contributing less in tax
revenue, medical care, or overall social benefit because of an artificial regulatory allowance or
protection
, nonprofit hospitals - correct answer ✔✔viewed as charities by the IRS (provide benefit to
community), don't pay federal income or state and local property taxes
for profit hospitals - correct answer ✔✔owned either by investors or the shareholders of a
publicly-traded company
community health needs assessment requirement for nonprofit hospitals - correct answer
✔✔required to conduct a CHNA at least once every 3 years
rent-seeking - correct answer ✔✔an individual or an entity seeks to increase their own wealth
without creating any benefits or wealth to the society; this reduces economic efficiency through
inefficient allocation of resources and commonly leads to other damaging consequences such as
rise in income inequality, lost govt revenue, and a decrease in competition
manipulation of the distribution of economic resources (rent-seeking) - correct answer
✔✔artificially enhancing wealth/economic return through legal protection (law and regulation)
rent-seeking in health care - correct answer ✔✔nonprofit health systems keeping IRS nonprofit
status and not paying taxes; patent protection for pharmaceuticals to prevent competition and
keep prices high
scope of practice - correct answer ✔✔decreasing the labor cost of health care
painful cost control - correct answer ✔✔rationing (who gets what procedure, etc), eliminating
cost-ineffective procedures
painless cost control - correct answer ✔✔(1) eliminating ineffective or inappropriate care; (2)
eliminate administrative waste; (3) innovation and greater productivity (telehealth, procedures,
reduced infection rates); (4) prevention
