A hospital accepts both fee for service (FFS) and capitation payers.The hospital

Question

A hospital accepts both fee for service (FFS) and capitation payers.The hospital created a static budget prior to the year and now the actual results are available so it is completing a flexible budget.If the actual number of visits for its capitated patients was higher than the budgeted number of visits (from the static budget), the total costs for the capitated group on the flexible budget would be ________?

Higher than on the static budget

The same as on the static budget

Lower than on the static budget

Explanation / Answer

A hospital accepts both fee for service (FFS) and capitation payers.The hospital

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