An Exclusive Provider Organization (EPO) Requires That Members

question 25

Multiple Choice

An exclusive provider organization (EPO) requires that members:

• A) accept responsibility for health-care cost containment.
• B) identify their preferred provider coverage.
• C) Obtain health-care services within a particular network.
• D) Pay a fixed monthly fee without employer compensation.

Assess the legality and implications of agreements in restraint of trade.

Understand the provisions related to bid-rigging and its effects on competition.

Analyze the impact of monopolistic practices and abuse of dominant position under the Competition Act.

Distinguish between criminal, regulatory, and civil aspects of the Competition Act.

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Definitions:

Machine Hours

A measure of production time, calculated by the total hours machines are in operation over a set period.

Under-Applied Overhead

A situation where the allocated overhead costs are less than the actual overhead incurred.

Over-Applied Overhead

A situation in cost accounting where the allocated overhead for a period exceeds the actual overhead costs incurred.

External Financial Reporting

The process of providing financial information to outside parties, such as investors and creditors, through statements and reports.