Reduce costs and reduce utilization

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Reference no: EM13914018

Which of the following is FALSE regarding capitated payment third-party arrangements:

a. Under a profit (CVP) analysis, there is no direct linkage between volume of services provided and revenues.

b. Providers have an incentive to reduce costs and reduce utilization.

c. Providers have an incentive to set higher charge rates to increase revenues.

 

d. Revenue associated with capitated contracts is often called premium revenue rather than patient service revenue.

Reference no: EM13914018

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