A Stark Violation Occurs When _____

question 29

Multiple Choice

A Stark violation occurs when _____.

• A) Billers submit insurance claims twice for the same service to the patients
• B) Financial payment for patient referrals is requested from healthcare facilities
• C) Insurance payments for patient services that were not provided are processed
• D) Providers refer patients to a facility in which the provider holds a financial interest

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Definitions:

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production rises.

Inputs

Resources such as labor, materials, and capital used in the production process to create goods and services.

Output

The total amount of goods or services produced by a person, machine, company, or industry.

Diseconomies of Scale

Occur when a company or business grows so large that the costs per unit increase. It represents the negative counterpart to economies of scale.