Certificate of Need (CON) Laws Apply to Health Plans in a Variety

question 19

Multiple Choice

Certificate of need (CON) laws apply to health plans in a variety of ways, depending upon the state. By definition, CON laws are laws that are designed to

• A) Regulate the construction, renovation, and acquisition of healthcare facilities as well as the purchase of major medical equipment in a geographical area
• B) Protect commerce from unlawful restraint of trade, price discrimination, price fixing, reduced competition, and monopolies
• C) Determine benefit payments when a person is covered by more than one plan, such as two group health plans 12
• D) License and regulate health plans that wish to establish and operate an HMO

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Definitions:

Revenue

The total income generated by a business from its normal business operations, including sales of goods and services.

Planning Budget

A budget formulated at the beginning of the budgeting period that is based on planned operations and outputs.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Planning Budget

A budget created at the beginning of a period, based on estimates of revenues and expenses.