In Contracting with Providers, a Health Plan Can Use a Closed

question 51

Multiple Choice

In contracting with providers, a health plan can use a closed panel or open panel approach. One statement that can correctly be made about an open panel health plan is that the participating providers

• A) must be employees of the health plan, rather than independent contractors
• B) are prohibited from seeing patients who are members of other health plans
• C) typically operate out of their own offices
• D) operate according to their own standards of care, rather than standards of care established by the health plan

---

Definitions:

Degree Of Financial Leverage (DFL)

A measure that evaluates the sensitivity of a company's earnings per share to fluctuations in its operating income, indicating financial risk.

Interest

The return on a debt investment.

Breakeven Volume

The number of units a company must sell to cover its fixed and variable costs, with no profit and no loss.

Units

Units commonly refer to a measure of quantity or to the basic amounts of inventory, production, or other quantifiable elements in business operations.