How are hospitals paid when they enter into a capitation agreement?

a. based on predetermined rates for individual procedures performed by the hospital
b. based on interim rates for individual procedures performed by the hospital, subject to retrospective adjustment after submission of actual costs
c. based on agreed-upon premiums per member per month, for agreeing to provide care
d. based on the total costs incurred by the hospital for actual care rendered to members of a particular group

c

Business

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A certain amount of friction is involved when resources are required to move from one economic activity to another

Indicate whether the statement is true or false.

Business

One major risk a firm assumes in an aggressive financing strategy is ________

A) the possibility that collections will be slower than expected B) the possibility that long-term funds may not be available when needed C) the possibility that short-term funds may not be available when needed D) the possibility that it will run out of cash

Business