Value-Based Payments and Pay for Performance Quiz

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Questions and Answers

What is a potential disadvantage of a hospital receiving a set annual budget from a regional health authority?

  • Alignment of hospital payments with patient outcomes.
  • Encouragement of system-wide efficiency.
  • Increased funding for unexpected expenses.
  • Reduced service quality due to budget inadequacy. (correct)

Which payment model aligns hospital payments with patient outcomes and satisfaction?

  • Value-Based Purchasing (VBP). (correct)
  • Set annual budget allocation model.
  • Pay-for-Performance (P4P).
  • Stabilized healthcare spending model.

What challenge may hospitals face under the Value-Based Purchasing (VBP) payment model?

  • Robust data collection for budget management.
  • Promotion of best practices and guideline adherence.
  • Increased funding allocation for unexpected expenses.
  • Meeting performance benchmarks for high-risk populations. (correct)

Under the Pay-for-Performance (P4P) model, what do physicians and hospitals receive financial incentives for?

<p>Demonstrating low rates of hospital-acquired infections. (B)</p> Signup and view all the answers

How does a hospital's reimbursement rates change under Value-Based Purchasing (VBP) based on its performance?

<p>Increases for demonstrating high patient satisfaction and low infection rates. (C)</p> Signup and view all the answers

What is a key advantage of the retrospective fee-for-service system?

<p>It ensures hospitals can recover the costs of services provided (D)</p> Signup and view all the answers

Which payment system may result in potential overuse of services due to the fee structure?

<p>Prospective Fee-for-Service System (B)</p> Signup and view all the answers

What is a disadvantage of the per diem fees payment system?

<p>May not account for the variability in costs of services needed daily (A)</p> Signup and view all the answers

How does the prospective fee-for-service system differ from the retrospective fee-for-service system?

<p>Prospective system establishes payment in advance, unlike the retrospective system (D)</p> Signup and view all the answers

Which health insurance payment system aligns with ensuring that hospitals are less likely to under-provide care?

<p>Retrospective Fee-for-Service System (D)</p> Signup and view all the answers

Which of the following payment models incentivizes cost reduction while maintaining quality of care?

<p>Shared Savings Programs (C)</p> Signup and view all the answers

What is the primary focus of Direct Primary Care (DPC) models?

<p>Both A and B (D)</p> Signup and view all the answers

Which payment model provides a fixed annual payment for all care for a patient or population?

<p>Global Payment (B)</p> Signup and view all the answers

What is a potential drawback of Pay for Performance (P4P) models?

<p>Potential for gaming the system (C)</p> Signup and view all the answers

Which payment model is specifically mentioned as being used in some state Medicaid programs?

<p>Alternative payment models (D)</p> Signup and view all the answers

What is one disadvantage of aligning financial incentives with health outcomes and patient satisfaction?

<p>Providers may focus on easily measured aspects of care rather than complex patient needs. (A)</p> Signup and view all the answers

What is a characteristic of Fee-for-Service (FFS) payment method?

<p>Incentivizes high volume of services. (D)</p> Signup and view all the answers

Which payment method risks under-service and may not cover all patient needs?

<p>Capitation (B)</p> Signup and view all the answers

What is a disadvantage of Capitation as a payment method?

<p>Risk of under-service, potentially not covering all patient needs. (B)</p> Signup and view all the answers

What advantage does Bundled Payments offer as a payment method?

<p>Predictable costs and incentivizes keeping patients healthy. (C)</p> Signup and view all the answers

What is the main disadvantage of out-of-pocket payments for healthcare?

<p>Both A and B (A)</p> Signup and view all the answers

Which of the following is a key strength of community health financing schemes?

<p>They promote community ownership and solidarity (A)</p> Signup and view all the answers

What is the primary purpose of social insurance programs like Medicare and Medicaid?

<p>To provide federal health insurance coverage to eligible populations (B)</p> Signup and view all the answers

Which of the following is a potential weakness of community health financing schemes?

<p>They can be financially unstable and unsustainable without external support (C)</p> Signup and view all the answers

What is the main advantage of out-of-pocket payments for healthcare?

<p>Users may have a greater sense of ownership over the services they use (D)</p> Signup and view all the answers

Which of the following is a fixed amount of money paid by the insured at the time of receiving a specific medical service or supply?

<p>Copayment (A)</p> Signup and view all the answers

What is the term used for the percentage fee that the insured pays for medical services or supplies after the deductible has been paid?

<p>Coinsurance (A)</p> Signup and view all the answers

Which of the following is the amount paid by the insured on a regular basis (monthly or yearly) to maintain their insurance policy?

<p>Premium (B)</p> Signup and view all the answers

What term refers to the covered benefits and services included in a health insurance plan?

<p>Benefits/Coverage (D)</p> Signup and view all the answers

Which of the following is an amount that the insured must pay out-of-pocket before the insurance plan starts to cover costs?

<p>Deductible (B)</p> Signup and view all the answers

What is one of the challenges associated with health insurance policies as mentioned in the text?

<p>Rising cost and affordability (D)</p> Signup and view all the answers

Why is financial protection important in the context of health insurance?

<p>To prevent bankruptcy from unexpected medical expenses (C)</p> Signup and view all the answers

What is a potential consequence of coverage gaps in health insurance policies?

<p>Significant out-of-pocket expenses for some services (B)</p> Signup and view all the answers

How does health insurance contribute to public health improvement?

<p>By facilitating access to healthcare services (B)</p> Signup and view all the answers

Which aspect of health insurance helps prevent individuals and families from facing financial ruin?

<p>Financial protection from unexpected medical expenses (B)</p> Signup and view all the answers

Why can the rising cost of healthcare and insurance premiums be a significant concern?

<p>Making it difficult for some individuals and families to afford coverage (C)</p> Signup and view all the answers

In what way does health insurance contribute to economic stability?

<p>By protecting individuals and families from financial ruin (B)</p> Signup and view all the answers

Why is it important for health insurance policies to cover every type of medical service?

<p>Avoid excessive out-of-pocket expenses for some treatments or services (D)</p> Signup and view all the answers

<p>Simplicity in comprehending coverage and rights fully (C)</p> Signup and view all the answers

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