Payment Agreements That Outline, in a Written Fee Schedule, Exactly

question 37

Multiple Choice

Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided, are known as ________.

• A) FFS pans
• B) capitation plans
• C) point-of-service plans
• D) HMO plans

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Definitions:

WACC

This calculation, known as the Weighted Average Cost of Capital, quantifies a company's cost of capital by proportionately weighting each type of capital it uses.

WACC

The Weighted Average Cost of Capital identifies the cost of a company's capital by weighting each capital category in proportion to its significance.

NPV

Net Present Value, a method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

IRR

Internal Rate of Return; the discount rate that makes the net present value of all cash flows from a particular project equal to zero.