The Following Statements Are About Various Reimbursement Arrangements That Health

question 82

Multiple Choice

The following statements are about various reimbursement arrangements that health plans have with hospitals. Select the answer choice containing the correct statement.

• A) A sliding scale per-diem charges arrangement differs from a sliding scale discount on charges arrangement in that only a sliding scale per-diem charges arrangement is based on total volume of admissions and outpatient procedures.
• B) Under a typical reimbursement arrangement that is based on diagnosisrelated groups (DRGs), if the payment amount is fixed on the basis of diagnosis, then any reduction in costs resulting from a reduction in days will go to the health plan rather than to the hospital.
• C) A negotiated straight per-diem charge requires payment of a single charge for a day in the hospital, regardless of any actual charges or costs incurred during the hospital stay.
• D) A straight discount on charges arrangement is the most common reimbursement method in markets with high levels of health plans.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and manufacturing overhead costs.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales by total assets.

Producing Sales

The process of generating revenue through the selling of goods or services.