Reading Comprehension

The United States hospital industry is an unusual market in that nonprofit and for-profit producers exist simultaneously. Theoretical literature offers conflicting views on whether nonprofit hospitals are less financially efficient. Theory suggests that nonprofit hospitals are so much more interested in offering high-quality service than in making money that they frequently input more resources to provide the same output of service as for-profit hospitals. This priority might also often lead them to be less vigilant in streamlining their services--eliminating duplication between departments, for instance. Conversely, while profit motive is thought to encourage for-profit hospitals to attain efficient production, most theorists admit that obstacles to that efficiency remain. For-profit hospital managers, for example, generally work independently of hospital owners and thus may not always make maximum financial efficiency their highest priority. The literature also suggests that widespread adoption of third-party payment systems may eventually eliminate any such potential differences between the two kinds of hospitals.

The same literature offers similarly conflicting views of the efficiency of nonprofit hospitals from a social welfare perspective. Newhouse (1970) contends that nonprofit hospital managers unnecessarily expand the quality and quantity of hospital care beyond the actual needs of the community, while Weisbrod (1975) argues that nonprofit firms--hospitals included--contribute efficiently to community welfare by providing public services that might be inadequately provided by government alone.



Question #2:
According to the passage, Newhouse's view of the social welfare efficiency of nonprofit hospitals differs from Weisbrod's view in that Newhouse

(A) contends that government already provides most of the services that communities need
(B) argues that for-profit hospitals are better at meeting actual community needs than are nonprofit hospitals
(C) argues that nonprofit hospitals are likely to spend more to provide services that the community requires than for-profit hospitals are likely to spend
(D) argues that nonprofit hospitals ought to expand the services they provide to meet the community's demands
(E) believes that the level of care provided by nonprofit hospitals is inappropriate, given the community's requirements

[spoiler]OA: E[/spoiler]

I could not understand this question. Even after seeing the OA, I could not figure it out.

Experts, please explain.

Thanks.

Hmm..

Source??

quality and quantity of hospital care beyond the actual needs of the community -> This does not mean that the level of care is inappropriate.. In fact if they go beyond someone's need, then it might very well be the case that level of care is beyond what it needs, making this an appropriate thing and not inappropriate....

I am not yet convinced why E is the answer.

Any one to explain?

Thanks.

gmat_perfect wrote:The United States hospital industry is an unusual market in that nonprofit and for-profit producers exist simultaneously. Theoretical literature offers conflicting views on whether nonprofit hospitals are less financially efficient. Theory suggests that nonprofit hospitals are so much more interested in offering high-quality service than in making money that they frequently input more resources to provide the same output of service as for-profit hospitals. This priority might also often lead them to be less vigilant in streamlining their services--eliminating duplication between departments, for instance. Conversely, while profit motive is thought to encourage for-profit hospitals to attain efficient production, most theorists admit that obstacles to that efficiency remain. For-profit hospital managers, for example, generally work independently of hospital owners and thus may not always make maximum financial efficiency their highest priority. The literature also suggests that widespread adoption of third-party payment systems may eventually eliminate any such potential differences between the two kinds of hospitals.

The same literature offers similarly conflicting views of the efficiency of nonprofit hospitals from a social welfare perspective. Newhouse (1970) contends that nonprofit hospital managers unnecessarily expand the quality and quantity of hospital care beyond the actual needs of the community, while Weisbrod (1975) argues that nonprofit firms--hospitals included--contribute efficiently to community welfare by providing public services that might be inadequately provided by government alone.



Question #2:
According to the passage, Newhouse's view of the social welfare efficiency of nonprofit hospitals differs from Weisbrod's view in that Newhouse

(A) contends that government already provides most of the services that communities need
(B) argues that for-profit hospitals are better at meeting actual community needs than are nonprofit hospitals
(C) argues that nonprofit hospitals are likely to spend more to provide services that the community requires than for-profit hospitals are likely to spend
(D) argues that nonprofit hospitals ought to expand the services they provide to meet the community's demands
(E) believes that the level of care provided by nonprofit hospitals is inappropriate, given the community's requirements

[spoiler]OA: E[/spoiler]

I could not understand this question. Even after seeing the OA, I could not figure it out.

Experts, please explain.

Thanks.

I can understand why OA is E.,,,but I am puzzled why this is "According to the passage question".
This should be an inference question.

Let us analyze the OA........First of all, be alert when you see BUT, WHILE, HOWEVER, YET........all such tricky words.

The author brought in WHILE between the two statements for Newhouse and Weisbrod.

So whatever direction Weisbrod view goes, Newhouse view should go opposite (an inference).
Author says that Weisbrod's view states that non-profit hospital provide appropriate services to the community.
It means Newhouse's view is inferred to state that the services to the community by non-profit were inappropriate.

meaning of inappropriate by dictionary...

Not suitable for a particular occasion etc
Not in keeping with what is correct or proper

nothing about more or less

Newhouse (1970) contends that nonprofit hospital managers unnecessarily expand the quality and quantity of hospital care beyond the actual needs of the community, while Weisbrod (1975) argues that nonprofit firms--hospitals included--contribute efficiently to community welfare by providing public services that might be inadequately provided by government alone


I am not convinced with the correct usage of the connector while. Here the inference of using while is on the efficient contribution of non profit hospitals to society made by Weisbrod as compared to Newhouse.

The agrument does not mention about inappropriateness of the services provided by inadequacy if the services were provided by government alone.

Can i suggest to check oA again because i feel its D.

Newhouse (1970) contends that nonprofit hospital managers unnecessarily expand the quality and quantity of hospital care beyond the actual needs of the community

Read this sentence two time. Answer is clearly E.

Sentence says that service is par excellent than required. Thus "inappropriate"

Hope this helps.

vaivish wrote:

Can i suggest to check oA again because i feel its D.

Hi Vaivish -- OA cannot be D.

D says

argues that nonprofit hospitals ought to expand the services they provide to meet the community's demands

This is exactly the opposite of what Newhouse is saying.. According to Newhouse --

nonprofit hospital managers unnecessarily expand the quality and quantity of hospital care beyond the actual needs of the community

compare the two statements-- Newhouse is saying that Non profit hospital managers provide more that what is needed.

gmat_perfect wrote:I am not yet convinced why E is the answer.

Any one to explain?

Thanks.

I guess you are not satisfied with the word 'inappropriate'. Well it simply means unsuitable, inapt, improper etc. It does not mean more or less.. If you use this meaning then option E will be clear to you.