A doctor's office would charge no-show patients $30 if they did not cancel their appointment 24 hours ahead of the appointment because
A)insurance will pay the no-show fee anyway.
B)the appointment time and associated revenue is perishable, and the doctor may lose revenue.
C)the doctor's office does a poor job of forecasting demand.
D)the no-show price of $30 can be added to medical fees for reimbursement.

Question

Quizplus · Accepted Answer

The no-show fee helps the doctor's office to mitigate lost revenue caused by patients who fail to show up for their appointments. Since the doctor's time and associated revenue is perishable, a no-show patient means that the doctor loses the opportunity to see another patient who could have taken the canceled appointment spot. Therefore, charging a no-show fee can help to incentivize patients to cancel their appointments on time or show up to their scheduled appointments, reducing lost revenue for the doctor's office.

A Doctor's Office Would Charge No-Show Patients $30 If They