Question

In: Economics

9.Which statement is FALSE about changing the unit of payment? More aggregate units of payment tend...

9.Which statement is FALSE about changing the unit of payment?

More aggregate units of payment tend to shift financial risk to providers of care.

The more aggregated the unit of payment, the less predictable the quantity tends to be.

In Germany was introduced global budgeting, called expenditure caps, for physician payment.

It’s difficult to isolate the specific effects of changing the unit of payment.

In the United States, the Medicare program adopted a less- stringent version of an expenditure cap for physician fees, known as the “sustainable growth rate”.

Solutions

Expert Solution

FALSE statement is

In Germany was introduced global budgeting, called expenditure caps, for physician payment.

Reason:

In 1970, global budgeting was introduced in Canada. It use global budgets or expenditure caps to constrain the growth in hospital and/or physician expenditures.

The basis of that introduction was taking the 1969 budget and capping it for every institutional care provider in the country, with some increase for inflation in 1970.


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