Which of the Following Is Not a Feature of Selective

question 4

Multiple Choice

Which of the following is not a feature of selective contracting (used by Managed Care Organizations) that intensified internal rivalry?

• A)Had infrequent (contract lengths of two to three years)and lumpy (one insurer may have represented over 5% of a hospital's business)sales
• B)Treated all hospitals as identical
• C)Kept price negotiations between insurers and hospitals secret,encouraging hospitals to lower prices to win contracts
• D)Contracted with hospitals that patients were most loyal to
• E)Created pressure for hospitals to win each individual contract with no thought of future consequences

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Definitions:

Present Value

The present value is the present-day valuation of a future money sum or cash flow series, determined by a given rate of return.

Simple Interest

A method of calculating the interest charge on a loan or financial product based on the original principal amount and the rate of interest over a specific time period, without compounding.

Interest on Interest

Earnings from reinvesting the interest received from an investment, leading to exponential growth over time.

Annually

Concerning an event that takes place annually.