Which of the Following Reimbursement Systems Allow Hospitals to Increase

question 14

Multiple Choice

Which of the following reimbursement systems allow hospitals to increase their profitability by increasing prices?

• A) Percent of charge
• B) Per case
• C) Per diem
• D) Capitation
• E) Cost

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Definitions:

Increase in Supply

A situation where the quantity of a good or service that producers are willing and able to sell, at a given price, rises.

Decrease in Supply

A situation where the quantity of a good or service that producers are willing to offer for sale at a given price level decreases.

Decrease in Demand

A reduction in the quantity of a good or service that consumers are willing and able to purchase at a given price range.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.