What Is the Motivation Behind the Cost-Control Features of Managed

question 9

Multiple Choice

What is the motivation behind the cost-control features of managed care?

• A)To ensure access to specialty care through general practitioner gatekeepers.
• B)To influence the way physicians practice medicine by changing the financial incentive structure of medical care delivery.
• C)to shift the financial risk onto patients.
• D)to eliminate all the guesswork from diagnoses by establishing practice guidelines.
• E)to create competition by providing patients with a wide range of providers.

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Definitions:

MRS

Marginal Rate of Substitution, the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at fixed prices.

Expected Percentage Return

The predicted return on an investment, expressed as a percentage of the initial investment.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean of the dataset.