A small outpatient clinic that focuses minor procedures and surgeries : 148585
A small outpatient clinic that focuses on minor procedures and surgeries uses a cost based payment system to determine patient charges. Due to their need to increase their profit margin the chief financial officer informally encourages that care provider to maximize their procedural charges regardless of its status as usual customary or reasonable. What is a possible explanation for the cfo's request? Please explain in detail. 1) the payours cover a percentage of the claim based on siliar industry average cost reports. 2) the clinic needs to decrease operating expenses and facillitate revenue growth of the facility. 3) the care providers must offer efficient quality of care that will increase personal bonuses. 4) The operational procedures and forecasted revenues are being inaccureately budgetted.