What Is the Basis for Determining Price by Health Care

question 14

Multiple Choice

What is the basis for determining price by health care organizations?

• A)The best formulas for determining price involve setting price on the highest possible margin above cost.
• B)The novelty of the product or service is the best basis for establishing price.
• C)A health care organization determines a price based on the services offered, the ability of the consumer to pay, and the cost to deliver the service.
• D)Cost leadership that generates low prices relative to competitors is always the best basis for pricing in health care.

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Definitions:

Phenomenological Approach

A method in social science that focuses on the subjective experience of individuals, emphasizing personal perception and meaning as the primary source of knowledge.

Subjective Aspects

Elements or perspectives that differ according to individual feelings, tastes, or opinions.

Primary Deviance

The initial act of rule breaking or deviant behavior before being labeled as deviant by society.

Secondary Deviance

Behavior that results from societal reaction to a person labeled as deviant, reinforcing a deviant identity.