MHA 706 Midterm- Lord 2024 Exam with Complete Solutions Rated A+

MHA 706 Midterm- Lord 2024 Exam with Complete Solutions Rated A+ Proprietorships & Partnerships: Pros & Cons - Correct Answer Pros: Ease of Information, Subject to a few regulations, no corporation income taxes. Cons: Limited life, difficult to transfer, unlimited life, difficult to raise capital. Corporations: Pros & Cons - Correct Answer Pros: Unlimited life, easy transfer of ownership, limited liability, ease of raising capital. Cons: Cost of formation and reporting, double or triple taxes must be paid. Non-profit Organization - Correct Answer Exempt from taxes. Goal is to improve community. For-profit Organizations - Correct Answer (Investor Owned) Goal is to maximize shareholder return. Owe taxes. Agency Problem - Correct Answer the possibility of conflict of interest between the stockholders and management of a firm. Example: Hire someone to carry out a job function, but they go out of their interests instead of best interests of company/organization. Third-party payor system in the US (i.e. private vs public) - Correct Answer Private: Blue Cross Blue Shield, Commercial Insurers, Self-Insurers. (AETNA) Public: Medicare and Medicaid-both offer services to different levels. "Safety net" Lowest reimbursement rates. Reimbursement methods (fee-for-service vs. capitation) - Correct Answer Fee for Service: payment is tied to amount of services provided. (Decades ago) *Dental industry* Capitation: payment is tied to the size of the covered population (number of enrollees) Payment is based on per # per month. *Decreasing utilization* Population is healthier.