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Who bears the risk under a flat system and why?

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Who bears the risk under a flat system and why?

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Solution Summary

This solution explains who bears the risk under a flat system and why. This question is from health care accounting and health care management.

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Under a flat system, the amount of the flat fee is generally agreed upon by the payor and provider through a predetermined agreement. Once the agreement is in place, the flat system is adhered to for all patients. When a flat system is used, the payor ...

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