Not-for-profit hospitals differ from traditional corpora… Show more Which of the following statements is false? Not-for-profit hospitals differ from traditional corporations in that a) a hospital may raise money for a capital building project from charitable social events. b) a hospital may raise money from charitable organizations to fund every day operating shortfalls. c) a hospital may have a large endowment from previous benefactors. d) a hospital is expected to provide a small, but significant portion of its services to patients who are unwilling or unable to pay for them. e) a hospital is most often subject to systemic (correlated) risks, while a traditional corporation is mostly subject to independent (uncorrelated) risks. Below is the list of the most important risks an investor must evaluate when projecting an HMO’s profitability. Which option does not belong to this list? a) not obtaining enough enrollees b) setting the capitation rate too high c) underestimating business expenses d) overestimating amount of capital and labor needed to run an HMO e) having too much equity (relative to debt obligations). Which one of the following basic findings about for-profits is not true? a) For profits tend to respond quicker to any changes in the market situation. b) For profits have lower costs, higher prices, and consequently greater profits. c) For profits are often engaged in cream skimming. d) For profits are often engaged in overcompensated activities like teaching and research. e) For profits avoid patients who are sicker, poor, or uninsured. 1One act passed by the federal government aimed at reducing the monopoly power of patented drugs was a) the 2003 Medicare Modernization Act. b) the 1984 Hatch-Waxman Act which established a process whereby generic drugs could be fast tracked for approval if they could prove they were the bioequivalent of an already approved patented drug. c) the TRIPS agreement which also provided special provision for AIDs drugs to the poor. d) the Harris-Kefauver Drug Act Amendments which slowed down the rate at which new drugs were approved by the FDA. e) the 1997 FDA modernization act which gave pharmaceutical companies ability to provide some information about unapproved uses of drugs. The hierarchy of funds to the pharmaceutical market in order of level of expenditures is a) wholesalers, mail order and retail pharmacies, pharmacy benefit managers, brand name pharmaceutical companies. b) mail order and retail pharmacies, wholesalers, pharmacy benefit managers, brand name pharmaceutical companies. c) brand name pharmaceutical companies, wholesalers, pharmacy benefit managers, mail order and retail pharmacies. d) brand name pharmaceutical companies, mail order and retail pharmacies, wholesalers, pharmacy benefit managers. e) brand name pharmaceutical companies, mail order and retail pharmacies, pharmacy benefit managers, wholesalers. Which drug is likely to be the most profitable for its producer (in terms of average “per-drug” profit)? a) The drug that was introduced in the market 1 year ago. b) The drug that was introduced in the market 2 years ago. c) The drug that was introduced in the market 3 years ago. d) The drug that was introduced in the market 10 years ago. e) The drug that was introduced in the market 15 years ago. What is the average time period for the introduction of a new drug into market? a) 2 years b) 5 years c) 8 years d) 9 years e) 12-15 years • Show less