What Is the Motivation Behind the Cost-Control Features of Managed

question 5

Multiple Choice

What is the motivation behind the cost-control features of managed care?

• A) To ensure access to specialty care through general practitioner gatekeepers.
• B) To influence the way physicians practice medicine by changing the financial incentive structure of medical care delivery.
• C) to shift the financial risk onto patients.
• D) to eliminate all the guesswork from diagnoses by establishing practice guidelines.
• E) to create competition by providing patients with a wide range of providers.

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Definitions:

Direct Labor-Hours

A measure of the time workers spend directly manufacturing a product, used in calculating labor costs and efficiency.

Variable Overhead

Costs of indirect production activities that fluctuate with the level of production output, such as electricity for machinery or materials handling costs.

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing process of a product and can be easily traced to the product itself.

Direct Labor-Hours

A measure of the total amount of time worked by employees directly involved in manufacturing a product or delivering a service.