The Actual Number of Providers Included in a Provider Network

question 177

Multiple Choice

The actual number of providers included in a provider network can be based on staffing ratios. One true statement about staffing ratios is that, typically:

• A) A small health plan needs fewer physicians per 1,000 than does a large plan.
• B) A closely managed health plan requires fewer providers than does a loosely managed plan.
• C) Physician-to-enrollee ratios can be used directly only by network-within-a-network model HMOs.
• D) Medicare products require fewer providers than do employer-sponsored plans of the same size.

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Definitions:

Operating Cash Shortfalls

Situations where a business does not generate enough cash from its operating activities to meet its operational expenses.

Trend Balance Sheet

A financial statement that presents a company's financial position over multiple periods, highlighting trends in assets, liabilities, and equity.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest.

Earnings Before Interest

A financial metric that calculates a company's profitability before interest expenses are deducted; however, it is more commonly referred to as EBIT (Earnings Before Interest and Taxes).