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A Certain HMO Is Attempting to Show the Benefits of Managed

question 77

Multiple Choice

A certain HMO is attempting to show the benefits of managed care to an insurance company. The HMO believes that certain types of doctors are more cost-effective than others. One theory is that certification level is an important factor in measuring the cost-effectiveness of physicians. To investigate this, the HMO obtained independent random samples of 26 physicians from each of the three certification levels-Board certified (C) ; Uncertified, board eligible (E) ; and Uncertified, board ineligible (I) - and recorded the total per member per month charges for each (a total of 78 Physicians) . How many factors are present in this study?

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Definitions:

Capacity Alternatives

Different strategies or options available to an organization to adjust or increase its production or service capacity to meet variations in demand.

Market Acceptance

The degree to which a new product or service is accepted and purchased by customers in the market.

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.