Question

Understanding the concepts of finance allows managers to make effective decisions true or false

Programs such as the upper price limit (UPL) are particularly useful for hospitals in high-income areas true or false

In the United States, there are no private payers who pay for healthcare out of pocket true or false

Medicaid was initially designed for disabled persons true or false

One of the cost drivers in healthcare is chronic disease true or false

Answer 1

1: True

Concepts of Finance such as the capital budgeting techniques allow managers to select the best options. Cash management is more effective with the help of forecasting techniques used in finance. Management is also able to maintain the most effective capital structure with the help of Finance concepts.

2. False.

Upper price limit allows States to cover the difference between what Medicare will pay and the Medicaid payments. This is more useful for low income patients.

3. False

United States has a substantial section of private payers who pay out of pocket

4: True

Medicaid was initially designed as a program to benefit the aged, blind, and disabled individuals.

5: True

The high prevalence of chronic diseases is a key cost driver of the U.S. healthcare costs. It was observed that in 2010 86% of total healthcare cost was for patients with at least one chronic disease.