Following Statements Are About Accreditation of Health Plans

question 145

Multiple Choice

Following statements are about accreditation of health plans:

• A) The National Committee for Quality Assurance (NCQA) serves as the primary accrediting agency for most health maintenance organizations (HMOs).
• B) The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) has developed standards that can be used for the accreditation of hospitals, but not for the accreditation of health plan provider networks or health plan plans.
• C) States are required to adopt the model standards developed by the National Association of Insurance Commissioners (NAIC), an organization of state insurance regulators that develops standards to promote uniformity in insurance regulations.
• D) Accreditation is an evaluative process in which a health plan undergoes an examination of its operating procedures to determine whether the procedures meet designated criteria as defined by the federal government or by the state governments.

Interpret and calculate performance measures such as profit margin and return on total assets.

Understand the significance and calculation of working capital.

Comprehend the implications of financial ratios in evaluating a company’s solvency, liquidity, and operational efficiency.

Grasp the concept of trend percentages and common size percentages to analyze financial statements.

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Definitions:

LAC Curves

The Long-Run Average Cost curves, which show the minimum average cost of production at different levels of output.

LMC Curves

Abbreviation for Long-Run Marginal Cost curves, which represent the cost to produce one additional unit of goods when all inputs can be varied.

Returns to Scale

The change in output resulting from proportional change in all inputs (factors of production); can be increasing, constant, or decreasing.

Returns to Scale

The change in output resulting from a proportional change in all inputs (factors of production); it identifies whether increasing inputs leads to proportionate, more than proportionate, or less than proportionate changes in output.