United States hospitals have traditionally relied primarily on revenues from paying patients to offset losses
from unreimbursed care. Almost all paying patients now rely on governmental or private health insurance to pay
hospital bills. Recently, insurers have been strictly limiting what they pay hospitals for the care of insured patients
to amounts at or below actual costs.
Which of the following conclusions is best supported by the information above?
(A) Although the advance of technology has made expensive medical procedures available to the wealthy,
such procedures are out of the reach of low-income patients.
(B) If hospitals do not find ways to raising additional income for unreimbursed care, they must either deny
some of that care of suffer losses if they give it.
(C) Some patients have incomes too high for eligibility for governmental health insurance but are unable to
afford private insurance for hospital care.
(D) If the hospitals reduce their costs in providing care, insurance companies will maintain the current level of
reimbursement, thereby providing more funds for unreimbursed care.
(E) Even though philanthropic donations have traditionally provided some support for the hospitals, such
donations are at present declining.

How do i analyse this argument

Use the POE . The answer must be true based on the information stem.



a) This is a trap containing extraneous information. A paying patient does not equal a wealthy patient. A is out

b) This is correct

c) Another trap.Nothing regarding income or wealth is mentioned in the stem. C is out

d) This is subtle and in my opinion wrong as it is too extreme. No mention is made of cost. We have not been given any analysis regarding cost and at what level of costs will the insurance companies will reimburse. D is out

Hence in my opinion it is B

e) Irrelevant.

we're going to need a source for this problem to discuss it further..

_________________
Tim Sanders
Manhattan GMAT Instructor