The Apparent Principal Driving Force Behind the Growth of Health

question 3

Multiple Choice

The apparent principal driving force behind the growth of health maintenance organizations (HMOs) has been ________.

• A) the desire of payers to stem excessive cost increases or reduce costs overall
• B) the growing tendency of providers to band together in cooperative arrangements
• C) the dramatic increase in competition among healthcare providers
• D) a desired reduction in the total number of hospital beds available

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Definitions:

Depreciable Cost

The original cost of a fixed asset minus its estimated salvage value, representing the amount subject to depreciation over the asset's useful life.

Straight-Line Depreciation

A procedure for allocating the price of a physical asset over its effective life in identical annual installments.

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose, affecting its depreciation calculation.

Patent Rights

This is the legal protection granted to an inventor or assignee offering exclusive rights to use and profit from an invention for a certain period.