Fee Schedules in Managed Care Contracts Are Increasingly Based On

question 84

Multiple Choice

Fee schedules in managed care contracts are increasingly based on:

• A) Medicare's resource-based relative value scale (RBRVS) and conversion factor.
• B) Medicare's resource-based relative value scale (RBRVS) with a different conversion factor.
• C) the HMO's per-member-per-month guidelines.
• D) usual and customary charges adjusted by geographic area.

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Definitions:

Administrative Expenses

Costs related to the general operation of a business, not directly tied to a specific function like production or sales.

Planning Budget

A forward-looking budget that sets forth revenue and expense targets for a future period, often used for strategic financial planning.

Spending Variance

The difference between the actual amount of money spent and the budgeted amount expected to be spent.

Food And Supplies

Items necessary for the operation of a service, especially in the hospitality and retail industries, including edible products and necessary equipment.