Which Actions Can the Hospital Administrator Take to Reduce Health

question 20

Multiple Choice

Which actions can the hospital administrator take to reduce health care costs?

• A)Hire case managers to see all patients who have extensive medical needs.
• B)Reduce the number of patients the hospital can accommodate.
• C)Ensure that appropriate staff is available.
• D)Encourage the use of evidence-based practice.
• E)Accept only patients with health insurance.

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Definitions:

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific product, department, or segment of a business.

Net Operating Income

A company's income after all operating expenses, excluding taxes and interest, have been deducted from total revenue.

Price Reduction

A decrease in the selling price of a product or service, typically with the aim of increasing demand or sales volume.

Value-Based Pricing

A pricing strategy where the price is based on the perceived value of a product or service to the customer rather than on the cost of production or a traditional market price.