Much of the Movement into Managed Care Was Driven By

question 20

Multiple Choice

Much of the movement into managed care was driven by:

• A) Corporate employers attempting to contain healthcare benefit costs.
• B) A strong desire to curb the growth of health insurance costs.
• C) The government's passage of the Health Maintenance Organization (HMO) legislation.
• D) All of the above.

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Definitions:

Controlling Interest

Ownership of a portion of a company that is large enough to influence or control its operations and decisions, typically over 50% of the voting rights.

Equity Contribution

Capital provided by owners or shareholders to a firm in exchange for an ownership interest or stock.

Initial Investment

The initial amount of capital used to start a business or investment.

Commercial Substance

A scenario where the future cash flows of an asset or group of assets are expected to change significantly due to a transaction.