The Textbook Identifies Three Reasons Why the Prospective Payment System

question 22

Essay

The textbook identifies three reasons why the prospective payment system (PPS)did not solve the long-run cost growth problems of Medicare.Describe two of those problems.

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Definitions:

Agents

Individuals or entities authorized to act on behalf of others in transactions or legal matters.

Undisclosed Principal

A situation in contract law where an agent acts on behalf of a principal, but the identity of the principal is not revealed to the third party.

Personal Liability

An individual's legal responsibility to satisfy debts or obligations from personal assets, not just those tied to a particular venture or entity.

Scope of Authority

The range or extent of power that an individual or organization legally has to perform actions or make decisions.