Under a Capitation Arrangement, a Provider Is Paid a Per-Member-Per-Month

question 1

Multiple Choice

Under a capitation arrangement, a provider is paid a per-member-per-month (PMPM) fee for all enrolled members:

• A) who are seen that month.
• B) whether or not they are seen that month.
• C) who are not referred to specialty care that month.
• D) who are not hospitalized that month.

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Definitions:

Determinants of Market Demand

Factors that influence the total quantity of a good or service that consumers in a market are willing and able to purchase at various prices.

Change in Supply

An alteration in the quantity of a product that producers are willing and able to sell in the market, due to factors like changes in cost of production or technological improvements.

Quantity Supplied

The quantity supplied refers to the amount of a good or service that producers are willing to sell at a given price over a specified period.

Rationing Function

The process by which a scarce resource is distributed among competing users.