A Not-For-Profit Hospital Signs a Contract with an Insurance Company

question 8

Multiple Choice

A not-for-profit hospital signs a contract with an insurance company in which the company agrees to pay the hospital $9 million in capitation fees for the year July 1, 2017, through June 30, 2018. Between July 1, 2017 and December 31, 2017, the hospital provides services that, at its standard rates, would bill at $5.1 million. Between January 1, 2017, and June 30, 2018, it provides services that it would bill at $4.2 million. For the year ending December 31, 2017, the hospital should recognize capitation revenue of

• A) $0
• B) $4.5 million
• C) $5.1 million
• D) $9 million

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, known for his theories on the unconscious mind, mechanisms of repression, and the psychosexual stages of development.

Sexual Repression

The act of suppressing or restraining sexual desires and expressions, often due to cultural, social, or personal reasons, which can lead to psychological distress or dysfunction.

Sigmund Freud

Sigmund Freud was an Austrian neurologist who founded the discipline of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Preconscious Mind

A part of the mind that contains thoughts, feelings, and memories not currently in consciousness but can be readily brought into consciousness.