The Movement from a Retrospective Payment System to a Prospective

question 33

Multiple Choice

The movement from a retrospective payment system to a prospective payment system using a diagnosis-related group may have what unintentional consequence for hospitals trying to contain their costs?

• A)Hospitals are now admitting more clients than previously.
• B)Patients are sent home from the hospital as soon as possible.
• C)Physicians order as many tests as needed to correctly diagnose the client's condition.
• D)Nurses are encouraged to follow safety protocols to reduce complications.

---

Definitions:

Operating Cash Flow

Operating Cash Flow refers to the cash generated from a company’s normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Long-term Solvency

A measure of a company's ability to meet its long-term financial obligations, indicating its financial health and stability over time.

Interest Coverage

A financial metric used to determine how easily a company can pay interest expenses on outstanding debt with its before-tax income.

Quick Ratios

A liquidity metric that measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.