Using a Staff-Model HMO, If There Is an Increase in the Wages

question 5

Multiple Choice

Using a staff-model HMO, if there is an increase in the wages of physicians, how would the HMO likely respond to provide its current level of medical care?

• A) Increase the number of physicians and decrease the number of physician extenders utilized.
• B) Decrease the number of physicians and decrease the number of physician extenders utilized.
• C) Increase the number of physicians and increase the number of physician extenders utilized.
• D) Decrease the number of physicians and increase the number of physician extenders utilized.
• E) None of the above

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Definitions:

Aging of Receivables

The process of categorizing accounts receivable according to the length of time an invoice has been outstanding for better management of credit risk.

Extending Credit

The act of allowing a buyer to purchase goods or services now and pay for them later, typically involving terms and conditions regarding repayment.

Cash Flow

The total amount of money being transferred into and out of a business, particularly in terms of liquidity and financial planning.

Cash Discount

A reduction in the invoice price offered by sellers to encourage early payment by buyers.