The Risks Involved in Using a Low-Cost Strategy Include All

question 194

Multiple Choice

The risks involved in using a low-cost strategy include all of the following except:

• A) attaining significant economies of scale
• B) the ability of competitors to copy the strategy
• C) management not paying attention to shifts in the environment
• D) getting "locked in" to a technology and organization design that is expensive to change

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Definitions:

Self-pay

A method of payment for healthcare services where the patient pays out-of-pocket, not relying on insurance.

Discharge Planning

The process of preparing a patient for return to home or transfer to another facility after hospitalization, ensuring continuity of care.

Utilization Review

Refers to an evaluation of health care services to determine the medical necessity, appropriateness, and cost-effectiveness of the treatment plans for a given patient.

Medical Coder

Uses an alphanumeric coding system for all diagnoses and all procedures in a manner that results in the maximum reimbursement for the provider and in fewer fees billed to the patient.