If a patient has a heart attack, everything done to diagnose and treat that condition is all grouped together into one clinically-defined episode of care.
What is an episode of care payment?
- In contrast to traditional fee-for-service reimbursement where providers are paid separately for each service, an episode-of care payment covers all the care a patient receives in the course of treatment for a specific illness, condition or medical event.
- Objective
- The element on a treatment plan that is the most likely to describe what the provider will be doing during the episode of care is "objective".
- The objectives in a treatment plan simply refers to the steps or activities that are taken by an individual in order to reach his or her goal. The objectives explain what the individual is expected to do during the treatment.
- Since it is stated in the scenario that this project will require a large capital expenditure due to the nature, the firm will consider NOT only equity financing but also DEBTS.
- As a matter of fact loans (particularly fixed term loans) are a cheaper source of finance for long term projects that require huge initial investment because.
1. Interest on loans are tax deductible which effectively reduces the cost of capital, and explains why cost of debt is given by the formula kd(1-tax rate)
2. The interest rate stays the same for the loan's entire term as against dividends on equity that are expected to grow
To learn more about Objective refer to:
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