What is the basis for determining price by health care organizations?
A)The best formulas for determining price involve setting price on the highest possible margin above cost.
B)The novelty of the product or service is the best basis for establishing price.
C)A health care organization determines a price based on the services offered, the ability of the consumer to pay, and the cost to deliver the service.
D)Cost leadership that generates low prices relative to competitors is always the best basis for pricing in health care.

Question

Quizplus · Accepted Answer

Health care organizations determine a price based on the services offered, the ability of the consumer to pay, and the cost to deliver the service. This approach takes into account the organization's financial sustainability and the affordability of services for patients, making it the most appropriate method for pricing in the healthcare industry. A and B are incorrect because they prioritize profit-making and novelty over patient affordability and access. D is incorrect because cost leadership should not compromise quality of care.

What Is the Basis for Determining Price by Health Care