Health Financing
1) Profit maximization is described as short-term goal within a given period of time. A corporation may maximize its short-term profits at the expense of its long-term profitability. In contrast, stockholder wealth maximization is a long-term goal, since stockholders are interested in future as well as present profits. According to world academy (2013),”wealth maximization is generally preferred because it considers (1) wealth for the long term, (2) risk or uncertainty, (3) the timing of returns, and (4) the stockholders` return. “Therefore, profit maximization and wealth organization are not the same things due to the fact one is good in short run while other is best on the long run. The shareholders of organizations desire wealth maximization over profit maximization because wealth maximization maximizes the share price of any organization.
2.) The primary distinction between prospective and retrospective payments is that prospective payment is when payer dictates what is necessary for each patient and at what cost these procedures will be reimbursed under. In contrast, retrospective payments are just same as or "fee-for-service" compensations that maximize the freedom of patients and providers to decide what procedures are best for each individual. Consequently, the main different between both is that one has a freedom of choice, while other have to follow procedures and protocols to be reimbursed.
3.) I was looking everywhere to answer this question and couldn’t find exact answer. Therefore, I am providing my own answer the way I understand it. To my understanding unreimbursed cost in Medicare is the difference between governmental settlement and the hospital's actual cost. So that means whatever Medicare does not pay to the hospital or provider, the patient is responsible for the difference unless he or she has a supplemental insurance that could kick in as a secondary to Medicare.
Reference
Johnson,W.(n.d) Health Care Reimbursement Issues.
2.) The primary distinction between prospective and retrospective payments is that prospective payment is when payer dictates what is necessary for each patient and at what cost these procedures will be reimbursed under. In contrast, retrospective payments are just same as or "fee-for-service" compensations that maximize the freedom of patients and providers to decide what procedures are best for each individual. Consequently, the main different between both is that one has a freedom of choice, while other have to follow procedures and protocols to be reimbursed.
3.) I was looking everywhere to answer this question and couldn’t find exact answer. Therefore, I am providing my own answer the way I understand it. To my understanding unreimbursed cost in Medicare is the difference between governmental settlement and the hospital's actual cost. So that means whatever Medicare does not pay to the hospital or provider, the patient is responsible for the difference unless he or she has a supplemental insurance that could kick in as a secondary to Medicare.
Reference
Johnson,W.(n.d) Health Care Reimbursement Issues.