Which of the following best explains why home health care agencies that are part of national chains are doing better in the competitive marketplace than individually owned agencies?

Question

Quizplus · Accepted Answer

Agencies within chains have a financial advantage over single agencies. The chains have lower administrative costs because a larger single corporate structure provides many services. For example, a multiagency corporation has greater purchasing power for supplies and equipment because they purchase a larger volume. A single corporate office can provide administrative services such as payroll and employee benefits for all chain employees, thereby reducing duplication of these services. It is unlikely that they are doing better because they receive better media coverage, offer less quality care, or have a more experienced chief executive officer.

Which of the Following Best Explains Why Home Health Care