Question

Essay 、 1 15 Potit maui mi2ah on he Same thing as shareholder Desenie the pm d dishnch on between ch ve pajmen 3. why is tne une mbursed Cost Of mediare most en det inchueleal as an elment et Cemmunity eneht 2

Answer 1

1)profit maximization means the main objective of firm is to earn profit while wealth maximization means is the ability of firm to maximize market value of shares over time. Wealth maximization is universally accepted in which manager take decision to maximize NET PRESENT VALUE of shareholders.

Profit maximization is old concept in which firm objective only to earn maximum profit.

Profit maximization is subset of wealth maximization for business is not necessary only to earn maximum profit being subset it facilitate wealth cteation giving priority to value manager shifted from. Profit maximization to wealth maximization. And profit maximization is short term and ignores risk and uncertainty while wealth is long term objective and consider both (risk and uncertainty)

2)primary distinction between prospective payment and retrospective payment

• Prospective payment create budget when care criteria episode are reached. Fee is provided to organization and intermediary in retrospective payment and retrospective payment involve fee calculated at the time of medical claims
• Prospective payment fetermines before service paymentsand retrospective payment determine after service payments.
• More financial risk is borne by provider not by funder in case high prospective payment and more financial risk is born by funder not provider in case retrospective payment.
• Maximize volume of service paid on retrospective payment and minimize cost component paid in prospective payment

3)unreimbursed cost of medicare most often not included in elements of community benefit because of copayment manner that is deductible with medical association. That type of excluding is unreimbursed medical cost not included as element of community more to do with links of nature between payment of cost and Medicare.