A Price Support

question 16

Multiple Choice

A price support:

• A) is a legislated price higher than the equilibrium price
• B) is a legislated price lower than the equilibrium price
• C) is a legislated price equal to the equilibrium price
• D) is not binding when it is higher than the equilibrium price

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Definitions:

Diagnosis-Related Groups

A system of classifying hospital cases into groups to facilitate payment based on the costs associated with the typical patient in each group.

Prospective Pricing

A pricing approach where the price for services, especially in healthcare, is determined in advance based on expected costs.

Provider's Coding

The process by which healthcare providers specify diagnostic and treatment codes for patient care, used for billing and record-keeping purposes.

Retrospective Payment

is a method of payment in which charges are based on actual costs incurred, typically analyzed and paid after the service has been provided.