A Third-Party Payment System for Health Care

question 30

Multiple Choice

A third-party payment system for health care:

• A) results because of externalities in the production of health care services.
• B) encourages more than the efficient amount of resources to be allocated to health care.
• C) encourages patients and health care providers to economize on the use of health care resources.
• D) means that patients pay the full price for health care services they consume.

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Definitions:

Bankruptcy

Legal nonpayment of financial obligations.

Operations Period

The timeframe during which specific operational activities or processes are carried out.

Financial Risk

The possibility of losing money on an investment or business operation, including risks related to market movements, credit, liquidity, and operational failures.

Actual Return

The real gain or loss experienced on an investment over a specified time period.