Cost Concepts Essay Example | Topics and Well Written Essays - 500 words

Cost Concepts - Essay ExampleThat is why HMO plans are cheaper than other plans. However, it is noteworthy that the added curtail over cost is achieved on the cost of quality of the wellness care.In this sign of managed care organization, physicians assign their redevelopments at a cheaper rate. This is a mutu on the wholey beneficial practice in which physicians earn to a greater extent because of increased business while the patients get the services at a significantly lower cost.The FFS plans stomach patients with maximum freedom in terms of choice of physician. Patients can use these plans to select a health care professional of their own choice whom they feel satisfied served by. However, the freedom amplify the cost of service they are given.In many ways, POS resembles HMO. Health care providers have the capitation arrangement for the people enrolled. However, in this type of managed care organization, there are no specific hospitals for doctors to work in. They are compen sated annually for all patient they check.Increasing the percentage of the patient population in lower-reimbursed, managed segments and changing practice patterns across all patient populations, including higher-utilization unmanaged segments (Majkowski, 1997).Ways in which physicians may be reimbursed in managed care organizations are numerous and set out from type to type. For example, in HMOs, physicians receive fixed salaries while in POS, the network providers are compensated on capitation basis, however the enrollees can choose a provider outside the network, who is reimbursed on fee-for-service basis (Virk,