Critical Reasoning

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.

What's wrong with E?

Sorry!! This is not a GMAT way of asking ....

Please Quote your source!!

Even this is not of LSAT like....


Please tell me ,on what pattern your Question fits in??? Hope you recognize all the pattern of CR!!!

gmatmachoman wrote:Sorry!! This is not a GMAT way of asking ....

Please Quote your source!!

Even this is not of LSAT like....


Please tell me ,on what pattern your Question fits in??? Hope you recognize all the pattern of CR!!!

Source: Manhattan CAT online.

joyseychow wrote:

gmatmachoman wrote:Sorry!! This is not a GMAT way of asking ....

Please Quote your source!!

Even this is not of LSAT like....


Please tell me ,on what pattern your Question fits in??? Hope you recognize all the pattern of CR!!!

Source: Manhattan CAT online.

IMO C seems to be a viable option for the community hospitals which they could leverage for its growth.

Plz post OA

joyseychow wrote: What's wrong with E?

Its like asking someone to pay 10$ for a 4$ burger so sounds wrong

C is correct I just googled because I don't like recreating threads, generally if you google or use search option on this forum, you'll find many such questions have been already discussed.

Yes..C seems correct because it is the main reason.
The other reason is a supporting reason because it starts with "further"..

C

I doubt MGMAT can test such a CR !

C seems to be the best bet here. On the other hand A was also close, but A mentions private insurers but according to the argument hospitals lose money because government reimburses poorly.

E is wrong because the fundamental issue is that the hospital loses money due to lack of coverage from government health plans and the not insured. Private health plans aren't part of the problem, so improving those won't help you.

The reason is as following:

Fundamental issue 1) Lack of coverage due to gov health plan + not insured
Leads to issue 2) Hospital can't pay for full time specialist because they don't have the money
Leads to issue 3) Consequently, they lose out on highly profitable specialty care AND >Depatronize local hospital<

So what is the solution: Getting those specialist back, which will lead to:

1) Patronization
2) Even more people will go local; more money
3) Rinse and repeat

This is a question from LSAT source, the students don't generally face in GMAT.

mgmt_gmat wrote:This is a question from LSAT source, the students don't generally face in GMAT.

I doubt so..becoz such of question of poor quality never pops up in LSAT..May be.. I a not very sure!!!

I agree with you. This is from MGMAT CAT.