Health Plans Often Negotiate Compensation Arrangements That Transfer Some or All

Health plans often negotiate compensation arrangements that transfer some or all of the financial risk associated with delivering healthcare services to network providers. The following statements are about these compensation arrangements. Select the answer choice containing the correct statement.

A) A per diem system typically places a healthcare facility at risk for controlling utilization and costs internally.
B) One likely reason that an health plan would use a fee schedule system to compensate providers is that this system transfers most of the financial risk to the provider.
C) Under a salary system, a provider assumes no service risk.
D) The use of a FFS or a salary system allows an health plan to transfer a greater proportion of financial risk to providers than does the use of capitation.