What triggered hospital downsizing in the United States in the 1980s?
Technology
Hill-Burton Act (1946)
Covid 19
Prospective Payment System (PPS)
The Correct Answer is D
Rationale:
A. Technology: While technological advancements may have influenced healthcare delivery, they did not directly trigger hospital downsizing in the 1980s.
B. Hill-Burton Act (1946): The Hill-Burton Act provided federal funding for hospital construction and modernization, which typically led to expansion rather than downsizing of hospitals.
C. Covid-19: Covid-19 emerged long after the 1980s and is not related to the hospital downsizing trends of that decade.
D. Prospective Payment System (PPS): The implementation of the Prospective Payment System (PPS) in the 1980s, particularly for Medicare reimbursements, shifted hospital reimbursement from fee-for-service to a predetermined payment based on diagnosis-related groups (DRGs).
This change incentivized hospitals to become more efficient and led to downsizing, closure of underutilized facilities, and consolidation of services.
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Naxlex Comprehensive Predictor Exams
Related Questions
Correct Answer is A
Explanation
A. By integration of several organizations under the same ownership or contractual
arrangements: MCOs garner enormous buying power by integrating various healthcare providers and services under one ownership or through contractual agreements, which allows them to negotiate better rates with suppliers and providers.
B. By shared savings program under the ACA: While the shared savings program under the ACA aims to reduce healthcare costs, it is not the primary method through which MCOs gained their buying power.
C. By providing an array of health care services to a large community: Providing a wide range of services enhances the value offered by MCOs but does not directly lead to significant buying power.
D. By enrolling a large segment of the insured population: Enrolling a large number of insured
individuals helps MCOs spread risk but is not the main factor that provides them with enormous buying power.
Correct Answer is B
Explanation
Rationale:
A. The United Kingdom: The United Kingdom has a publicly funded healthcare system
(National Health Service), which typically has lower healthcare costs compared to the United States.
B. The United States: The United States consistently has the highest healthcare costs per capita among developed countries due to factors such as high administrative costs, pharmaceutical prices, and utilization rates.
C. Canada: Canada has a publicly funded healthcare system (Medicare), which generally has lower healthcare costs compared to the United States.
D. Jamaica: Jamaica's healthcare system is characterized by resource constraints, and healthcare costs are typically lower compared to those in the United States.
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