The Following Statements Describe Two Types, or Models, of HMOs

question 1

Multiple Choice

The following statements describe two types, or models, of HMOs: The Quest HMO has contracted with only one multi-specialty group of physicians. These physicians are employees of the group practice, have an equity interest in the practice, and provide

• A) A captive group a staff model
• B) A captive group a network model
• C) An independent group a network model
• D) An independent group a staff model

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Definitions:

Overhead Applied

The amount of overhead cost allocated to products or job orders based on the predetermined overhead rate, used for cost accounting purposes.

Machining Department

A specific division within a manufacturing facility where machining processes such as cutting, drilling, or milling are performed on workpieces to produce finished parts.

Overhead Rates

Ratios used to allocate indirect costs to products or services, based on a predetermined activity base such as labor hours or machine hours.

Machine-Hours

A measure of production time, referring to the total hours that machinery is operated in the manufacturing process.