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:

Inflation Premium

The part of the nominal interest rate that represents compensation to the lender for the loss of purchasing power due to inflation.

Maturity Risk Premium

The additional return that investors demand for holding a bond until its maturity due to the potential for a change in the value over time.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the minimum at which shares can be issued.

Coupon Paid Semiannually

A bond payment made twice a year, representing the interest owed to bondholders.