Which of the following is not a feature of selective contracting (used by Managed Care Organizations)that intensified internal rivalry?
A)Had infrequent (contract lengths of two to three years)and lumpy (one insurer may have represented over 5% of a hospital's business)sales
B)Treated all hospitals as identical
C)Kept price negotiations between insurers and hospitals secret,encouraging hospitals to lower prices to win contracts
D)Contracted with hospitals that patients were most loyal to
E)Created pressure for hospitals to win each individual contract with no thought of future consequences

Question

Quizplus · Accepted Answer

Selective contracting intensifies internal rivalry by creating pressure for hospitals to win each individual contract with no thought of future consequences, keeping price negotiations between insurers and hospitals secret to encourage hospitals to lower prices to win contracts, having infrequent and lumpy sales, and treating all hospitals as identical. However, contracting with hospitals that patients are most loyal to does not necessarily intensify internal rivalry.

Which of the Following Is Not a Feature of Selective