If a Hospital Has an SMR of 2

question 17

Multiple Choice

If a hospital has an SMR of 2.53 for a specific DRG, this means that the hospital has a _____% higher mortality for the DRG than was expected.

• A) 153
• B) 2.53
• C) 1.0
• D) 50

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Definitions:

Normal Profit

The minimum level of profit necessary for a firm to remain competitive in the market, essentially covering opportunity costs.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Purely Competitive Industry

A purely competitive industry is characterized by many buyers and sellers, homogenous products, and free entry and exit from the market, ensuring no single entity can control the market price.

Units of Output

Quantities of product or service produced by a company, which can be measured to assess productivity or performance.