Deck 7: Economic Issues in Nursing and Health Care

Question 1

The nurse studying health care economics understands that a system that valued attaining competitive advantage as its primary goal would be classified as operating in the model of _____-sum competition.

A) negative
B) normative
C) positive
D) zero

Answer 1

zero

Question 2

While studying health care economics, the nursing professor explains to a class that the economic principle of opportunity costs means that:

A) economic decisions are based on the best opportunity that arises.
B) free market failure occurs when efficient use of resources is lacking.
C) satisfying one desire eliminates the possibility of satisfying another.
D) we make our decisions based on opportunities to benefit others.

Answer 2

satisfying one desire eliminates the possibility of satisfying another.

Question 3

The student nurse knows that employer-sponsored health insurance was:

A) a new idea for health care financing invented after World War II.
B) created by the federal government to stimulate the economy.
C) never envisioned as being a permanent part of the health care arena.
D) originally a way to increase revenue for doctors and hospitals.

Answer 3

originally a way to increase revenue for doctors and hospitals.

Question 4

A practicing nurse is interested in health care economics.To create an environment where health care more closely resembles the consumer market, this nurse would place high priority on activities revolving around:

A) educating patients and families.
B) exploring the costs of treatment.
C) understanding payment options.
D) using less expensive supplies.

Question 5

An insurance company's internal statistics show that the company is losing a great deal of money processing small, frequent claims submitted by its customers.The company accountant suggests that the best way to decrease this loss is to:

A) delay payment until the claims reach a set figure.
B) educate customers on how much these claims cost.
C) increase the deductible customers must satisfy.
D) refuse to accept claims below a certain amount.

Question 6

A health care practice has changed its mix of patients and now accepts fewer self-paying and more insured patients.The office manager tells the staff to anticipate:

A) caring for more-educated patients.
B) offering expanded office hours and days.
C) ordering more diagnostic tests.
D) providing more preventive care.

Question 7

In trying to understand current problems in today's health care environment, the nurse could reframe the discussion as a problem created by:

A) competing interests of market and governmental forces.
B) tension between for-profit and not-for-profit institutions.
C) too many different agencies providing the same services.
D) unchecked rises in providers' salaries and fees for service.

Question 8

A chief nursing officer (CNO)is concerned about the ongoing nursing shortage and wants to implement strategies to keep it from getting worse.Which action by the CNO would best meet this goal?

A) Create a career ladder for registered nurses.
B) Institute an across-the-board wage hike.
C) Offer tuition reimbursement at area colleges.
D) Provide perks, such as unit holiday parties.

Question 9

A nursing manager wants to be involved in activities that would systematically improve quality care.The manager would best accomplish this by:

A) ensuring that temporary agency nurses fill open positions.
B) hiring only baccalaureate-prepared nurses on that unit.
C) preparing cost estimates for a new telemetry system.
D) teaching nurses on the unit to use positive conflict-resolution skills.

Question 10

A nurse midwife has moved into town and wishes to establish a practice.Economically speaking, what could this nurse do that would best enhance her chances of establishing a successful practice?

A) Become affiliated with the busiest maternity group.
B) Find a sponsor who will provide low-interest loans.
C) Investigate the costs associated with physician care.
D) Locate offices near a hospital that has a lot of births.

Question 11

A chief nursing officer (CNO)wants to respond to a threatened reduction in nursing positions in a hospital where financial conditions are poor.Which action by the CNO would be best?

A) Compare nurse-patient ratios nationwide, describing the impact of layoffs.
B) Hire a lobbyist to put political pressure on the hospital's administration.
C) Prepare a cost-benefit analysis of the effect of nursing care in that hospital.
D) Use a cost-minimization strategy to show how nursing costs can decrease.

Question 12

A nurse economist is explaining to a class that the health care market exists in a state of "market failure" because:

A) complex variables prevent a consensus on health care "production."
B) health care fails to meet the needs of its customers and consumers.
C) more health care practices are failing economically in this market.
D) practices suffer as their investments in the stock market fail to grow.

Question 13

At a rally for better health care coverage, a nurse hears someone say that government-sponsored health programs are inherently unfair.What statement best justifies this position?

A) Government-sponsored plans have no system of ensuring accountability.
B) Taxes should not be used for anything other than running the government.
C) The people who pay the most in taxes often get the fewest benefits.
D) There are no tax deductions for the contributions made to the plans.

Question 14

A nurse realizes that nurse-run clinics demonstrate increasing economic value in nursing because they:

A) allow these nurses to set their own salaries.
B) create value by filling unmet health needs.
C) focus on nurses' economic competitiveness.
D) provide new job opportunities for nurses.

Question 15

A state nurses association has convinced hospitals in that state to offer very attractive wage and benefits packages to nurses.To determine whether this strategy is working to provide a long-term solution to the nursing shortage, the association would measure the:

A) comparative RN vacancy rates before and after the change.
B) hospitals' use of agency personnel to fill nursing positions.
C) number of students admitted to nursing schools in that state.
D) percentage of nurses stating on a survey that they work second jobs.

Question 16

A nurse economist is explaining the principle of stakeholder cooperation as part of positive-sum competition to students.The student who understands this concept would paraphrase the concept as:

A) encouraging stakeholders to cooperate to allow continuous change.
B) giving stakeholders options in design and output of the system.
C) many entities working together to satisfy each group's needs.
D) valuing each stakeholder's contribution to the system's creativity.

Question 17

The nurse is explaining the American health care system to a patient from another country that has government-sponsored health care.The nurse would explain that one driving force for private insurance has been:

A) consumer-driven markets demanding insurance.
B) necessary rationing of scarce health care resources.
C) the lack of government involvement in health care.
D) uncertainty related to the need for medical care.

Question 18

A nurse wishes to get a job in a large city with many hospitals from which to choose but is dismayed to learn that the wages for nurses are nearly as low in the city as in the rural area where the nurse lives.The nurse concludes that:

A) city hospitals have agreed on wage levels for nurses.
B) demand for nurses in the city is similar to the rural area.
C) state government has mandated wage scales for nurses.
D) the cost of living in the city is similar to the rural area.

Question 19

A nurse performing a technology assessment understands that the results of the assessment will be used to:

A) compare different brands of equipment.
B) determine whether up-to-date items are being used.
C) distribute technology evenly across units.
D) make decisions on resource allocation.

Question 20

A nurse is explaining Medicaid and Medicare to a patient and describes the biggest difference in the programs as being the:

A) duration of benefits.
B) health services provided.
C) level of administration.
D) waiting period for coverage.

Question 21

The student studying health care economics knows that this includes: (Select all that apply.)

A) capital inputs.
B) diagnostic equipment.
C) medical supplies.
D) patients.
E) personnel.

Question 22

A student is explaining the Health Insurance Marketplace to a relative.What information does the student provide? (Select all that apply.)

A) Available at both the state and federal levels.
B) Publishes quality-related data for insurers.
C) Provides information on types of insurance available.
D) Shows consumers if they are eligible for subsidies.
E) Penalties for the noninsured are set by the Centers for Medicare and Medicaid.

Question 23

The student learning about the Affordable Care Act (ACA)understands the three entities that were created to oversee and evaluate the quality of care and cost of the health care system.Which entities are involved in this process? (Select all that apply.)

A) Center for Medicare and Medicaid Innovation
B) Centers for Medicare and Medicaid Services
C) Children's Health Insurance Program
D) Patient-Centered Outcomes Research Institute
E) The Independent Payment Advisory Board

Question 24

A student is discussing the impact of magnet hospitals as an example of positive-sum competition.The student would best describe magnet hospitals' contribution to this model as:

A) a workplace culture encouraging collegiality balanced with autonomy for best care.
B) having a positive-sum revenue stream using technologically advanced practice.
C) providing a quantitative analysis of the value of nursing care to stakeholders.
D) having the ability to compete within the health care marketplace in a positive manner.

Question 25

A nurse is lobbying for a bill to allow more third-party reimbursement for expanded nursing roles, such as those in retail clinics.To best make the argument for expanded reimbursement, the nurse should provide data on:

A) how many other countries have similar reimbursement?
B) marketing to increase expanded community nursing roles.
C) quality, cost effectiveness, and need for these services.
D) patient dissatisfaction with traditional medical practices.

Question 26

The Director of Nursing (DON)at a large urban hospital is tasked with increasing the hospital's profits and improving quality.What action by the DON is best?

A) Engage in monopsony with regional hospitals.
B) Hire more nonprofessional ancillary staff.
C) Implement policies to prevent hospital-acquired infections.
D) Purchase capital budget items only when necessary.

Question 27

An economist explains that consumerism is not a preferred mechanism for the health care market because of the:

A) ethical viewpoint that equal access to health care is a universal human right.
B) inability of most people to save for or borrow enough money to pay for care.
C) trend for prices of health care goods and services that continue to skyrocket.
D) variability in people's ability to articulate current and future health care needs.

Question 28

A patient who returns to the emergency department 2 days after being seen is feeling no better.On assessing the patient, the nurse learns that the antibiotic prescription the patient left with has not been filled.Which question or statement by the nurse would elicit the most information about this situation?

A) "I'd like to know why you haven't gotten that filled."
B) "Is that medicine too expensive for you to get filled?"
C) "Please tell me about the type of insurance you have."
D) "Why haven't you gotten that prescription filled yet?"

Question 29

A faculty member explains to a class of nursing students that Medicare: (Select all that apply.)

A) covers children younger than 18 years of age.
B) covers persons older than 65 years of age.
C) helps pay for medications.
D) includes some chronic disability.
E) is a federal insurance program.

Question 30

A nurse working in a retail clinic correctly describes the practice environment as: (Select all that apply.)

A) incorporating retail items.
B) limited to wealthier patients.
C) located in retail facilities.
D) providing limited services.
E) staffed by physicians.

Question 31

A nurse is evaluating an economic analysis paper.In critiquing the analysis, the nurse should note whether it: (Select all that apply.)

A) considers from whose viewpoint the analysis is being considered.
B) demonstrates that the interventions discussed are clinically effective.
C) determines whether the analysis was based on a clearly defined question.
D) includes a description of the type of analysis performed.
E) evaluates interventions that can be performed in all practice settings.