Question 1

Service-based funding is one model of hospital funding. Which of the following is another popular way to organize hospital funding?&#10;A) Capitation-based funding&#10;B) Block funding&#10;C) Canada Health Transfer&#10;D) Equalization payments

Accepted Answer

Block funding involves providing a hospital with a predetermined amount of funding to cover all expenses for a specific period of time, usually a year. This provides the hospital with financial stability and allows for better budgeting and planning. Capitation-based funding involves a fixed amount of money paid per patient, regardless of the services they require. The Canada Health Transfer and Equalization payments are funding models for the entire Canadian healthcare system, not specific to hospitals.

Question 2

Which of the following represents a change in practice that reduces hospital costs?&#10;A) Drug insurance plans&#10;B) Larger hospitals&#10;C) Same-day admissions&#10;D) Formation of regional health authorities

Accepted Answer

Same-day admissions reduce hospital costs by avoiding the need for overnight stays and reducing the use of hospital resources. The other options may not necessarily result in a direct reduction of hospital costs.

Question 3

Which of the following is a reason for rising drug costs in the Canadian health care system?&#10;A) Fewer employers offer drug insurance plans.&#10;B) More people are taking multiple medications.&#10;C) Drug patents now expire earlier than they once did.&#10;D) Birth rates are rising across Canada.

Accepted Answer

As more people require multiple medications to manage their health conditions, the demand for these drugs has increased, leading to rising costs.

Question 4

How are public long-term beds funded?&#10;A) Solely by the client&#10;B) Solely by the provincial or territorial government&#10;C) Co-payment between the client and the province or territory&#10;D) Solely by the municipality where the client is resident

Accepted Answer

Public long-term care beds are typically funded through a co-payment model where the cost is shared between the client and the provincial or territorial government.

Question 5

What is capitation-based funding?&#10;A) A funding formula to pay physicians who participate in a primary care reform group&#10;B) A funding formula that the federal government uses to award funding based on population&#10;C) A funding formula that allows clients to contribute to the cost of care&#10;D) A funding formula that allows the provincial or territorial government to contribute to the cost of care

Accepted Answer

Capitation-based funding is a funding formula used in primary care reform that pays physicians a set amount per patient for a specified period of time, regardless of how many services are provided. This incentivizes physicians to focus on preventative care and overall health outcomes rather than just treating illnesses as they arise.

Question 6

What coverage is available for a low-income family that does not have a private medical plan and has a child with a chronic condition that is not able to afford the medications that their child requires?

A) National drug plan
B) Pharmaceutical company subsidy
C) Relief from federal income tax to cover medication payment
D) Catastrophic drug cost coverage

Accepted Answer

Catastrophic drug cost coverage is designed to help families who face high medication costs that they cannot afford, especially in cases of chronic conditions.

Question 7

What can be a negative consequence of hospital merging?&#10;A) Lost seniority among staff may occur.&#10;B) There is more duplication of service.&#10;C) Roles of professionals are more clearly defined.&#10;D) Centralization of support services increases costs.

Accepted Answer

Hospital merging may result in layoffs and a loss of seniority among staff as the new organization may prioritize retaining employees with more specialized skills or experience. Duplicate services may also be consolidated, potentially leading to layoffs or a reduction in the range of services offered, but this is not universally negative. The centralization of support services may increase efficiency and reduce costs, but this is not a universally negative consequence of merging. Clearer definition of professional roles may be positive or negative depending on the specifics of the merger.

Question 8

What are equalization payments?&#10;A) An income tax charged to residents with higher income&#10;B) A direct transfer of money between provinces or territories&#10;C) An allowance from the federal government to provinces or territories that have less money than the national average to provide health services&#10;D) A transfer of funds between regional authorities to ensure service in rural areas

Accepted Answer

Equalization payments are an allowance from the federal government to provinces or territories that have less money than the national average, enabling them to provide comparable levels of public services, including health services, at similar taxation levels.

Question 9

Brand-name drugs cost more than generic drugs and are protected under a piece of legislation called the Patent Act. How long are brand-name drug patents applicable in Canada?&#10;A) 10 years&#10;B) 20 years&#10;C) 50 years&#10;D) As long as the company produces and distributes the brand-name drug

Accepted Answer

Brand-name drug patents are applicable for 20 years in Canada, after which they can be produced and sold as generic drugs.

Question 10

Which of the following is a common model of payment for physicians?&#10;A) The client pays for service.&#10;B) Physicians are remunerated based on their specialist referral rate.&#10;C) Municipalities retain physicians for a yearly salary.&#10;D) Physicians are remunerated on a fee-for-service (FFS) basis.

Accepted Answer

Fee-for-service (FFS) is the most common model of payment for physicians. Under this model, physicians are paid for each service they provide to patients. This can include everything from office visits to surgeries, and the fee is typically determined by the complexity of the service provided.

Deck 8: The Dollars and Sense of Health Care Funding