Question

In: Finance

Which of the following statements about provider cost structure and financial risk is false? Group of...

Which of the following statements about provider cost structure and financial risk is false? Group of answer choices A provider that is predominately capitated can reduce risk by increasing the proportion of fixed costs. A provider’s cost structure has no impact on reimbursement risk. A provider that is predominately fee-for-service can reduce risk by increasing the proportion of variable costs. The risk under capitation can be reduced by increasing the number of capitated members (covered lives). The risk under capitation can be reduced by increasing provider actuarial and cost measurement expertise.

Solutions

Expert Solution

Statement which is false is related to cost structure of the provider and it does have a reimbursement risk but it is given that provider cost structure has no impact on the reimbursement risk is completely false.

All the other statements are correct.

Correct answer is A PROVIDER'S COST STRUCTURE HAS NO IMPACT ON THE REIMBURSEMENT RISK.


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