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1. Consumer choice has indicated that patients tend to feel more allegiance to national hospital chains, even if out of their home area, than to local hospitals.

– True


2. The Anti-trust Hospital Merger Act (AHMA) outlaws price discrimination and prohibits mergers and acquisitions where the effect may be substantially to lessen the competition or tends to create a monopoly in the market.


– False

3. Blue Cross Hospital Insurance, the predominant form of health insurance for decades, was modeled after:


the American Hospital Association policies


trade union “sickness” insurance


Baylor University Hospital’s school teachers plan


the industrial policies of Metropolitan and Prudential

4. Each of the following is a factor used to determine whether an independent contractor should be classified as an employee under the Fair Labor Standards Act, except


The degree of skill required to perform the work


The worker’s investment in the business


The worker’s level of salary


The permanence of the working relationship


The worker’s opportunity and risk for profit and loss

5. Although historically the structure of the US healthcare delivery system has consisted primarily of personal interactions between patients and physicians, today’s healthcare delivery system is composed mostly of corporate entities and medical groups.



6. The Clayton Act modified the Hart-Scott-Rodino Act to require parties to a merger to notify the Federal Trade Commission and the Department of Justice prior to entering into certain transactions.



7. Which of the following is true concerning the Federal Anti-Kickback Statute?


It forbids anyone from knowingly and willfully soliciting or receiving any kickbacks, bribes or rebates in return for referring an individual for services that will be paid under a federal healthcare program.


This law is enforced by the Internal Revenue Service.


It forbids kickbacks under the Medicare program but the law doesn’t apply to the Medicaid program.


The law is broken all of the time by healthcare providers because if the providers are caught violating the law, the penalties and remuneration enacted are low.

8. Horizontal integration is when hospitals(or other institutions) purchase or sign contracts with other healthcare organizations that are upstream or downstream from the original institution.



9. Federal Law does not prohibit an employer from using which of the following factors in making employment decisions






Religious beliefs


Marital Status

10. Which of the following are true about Independent Practice Associations?


It is a form of business organization that provides a limited degree of integration between medical practices.


They work well because competition between the physicians in the group is eliminated.


Ownership interests in the Independent Practice Association can be sold to physicians in exchange for start-up capital.


A and C are both true.


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