Government and Third-Party Payers Announce Reduction of Compensation for the Delivery

question 21

Multiple Choice

Government and third-party payers announce reduction of compensation for the delivery of patient services.Hospital STV has a flat organizational structure.After the funding announcements,senior officials at the hospital meet and make decisions regarding cost containment of new revenue streams.This action is consistent with:

• A)The practice of leaving financial decisions with senior officials who understand the total context of funding.
• B)A tendency to concentrate decision making during economic downturns at the top administrative level.
• C)A need to make expedient decisions that are likely to be poorly received by staff.
• D)Ensuring that decisions with regard to cost are made equitably across all departments.

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Definitions:

Future Bond Issue

A planned issuance of bonds by a corporation or government in the future to raise capital.

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Shares of a company's own stock held by the company itself, often bought back from shareholders and not considered when calculating earnings per share or dividends.

Retained Earnings

The portion of a company's profits that is not distributed to shareholders as dividends but is kept by the company for reinvestment.