Critical Reasoning

Source: Manhattan Prep

Small community hospitals in poor urban areas almost always operate at a loss due to an unfortunate cycle of factors. High revenue specialists, such as surgeons, flock to hospitals that are more prestigious and can afford to pay higher salaries. Aware of this, local residents patronize the more affluent nearby hospitals when they need specialty care or forgo care entirely, while only utilizing the local hospital for low-margin routine care. Further, a significant majority of the community uses government health plans, which reimburse poorly for routine care, or lacks insurance entirely and cannot pay. The local hospital then loses money and cannot afford to hire specialists to conduct the higher-margin specialty care.

Which of the following, if it could be accomplished, would best help small community hospitals to break the pattern described above?

A. Negotiate higher reimbursement rates for specialty care with both government health plans and private insurers.
B. Advertise the hospital's specialty care services in the local community as well as nearby communities to attract more business.
C. Partner with a nearby affluent hospital to contract its specialists on a part-time, as-needed basis, which is more affordable than hiring these specialists full time.
D. Launch a community outreach campaign to educate the public about the low reimbursement rates of government health plans compared with the high rates paid by private insurers.
E. Negotiate with private insurers for higher reimbursement rates for routine care.

The OA is C

OPTION A :- INCORRECT
This might not really be the best method of turning around the existing pattern because either or both the government or private firms in question may not be willing to agree with any higher reimbursement rates for that purpose considering the rates at which the residents patronizes the hospital. Therefore, even with higher rates of reimbursements, if all retarding factor are not fixed, the turnout will still be the same.

OPTION B :- INCORRECT
No matter how effective the publicity , the residents will eventually be discouraged when they get access to the facilities and personnel available in the hospital and they are unable to get high valued service.

OPTION C :- CORRECT
This is the best recommended case that will help the small community hospital to get able and competent specialists to attend to their clients therefore this will give them the opportunity to render high class service to the residents simultaneously managing the available reimbursement to finance their personnel. This in turn will improve the patronage from the residents and make their operation more profitable.

OPTION D :- INCORRECT
This is similar to option B , no matter how effective their awareness may be , if their operating procedure are not turned around to level up with the demand of their customers, all their efforts is to no avail.

OPTION E :- INCORRECT
This is similar to option A and it is not effective enough to change the situation.