B.
Fee-for-Service expense line
C.
Fee-for-Service breakeven point
D.
Fee-for-Service profit wedge
E.
Fee-for-Service loss wedge
F.
Capitated breakeven point
G.
Capitated expense line
H.
Capitated revenue line
I.
Capitated profit wedge
J.
Capitated loss wedge
2.
Explain what is meant by a revenue line and expense line in a Fee-for-Service
environment and give examples of each: In a Fee-for-Service healthcare system, the
revenue line signifies the income obtained by providing services to patients. This income
is typically generated from payments received for each service rendered, such as doctor
visits, diagnostic tests, or procedures. For instance, a revenue line in a Fee-for-Service
healthcare setting could include fees collected for patient consultations, lab work, X-rays,
and other services provided (Centers for Medicare & Medicaid Services, n.d.).
3.
Explain the meaning of a breakeven point, profit wedge, and loss wedge in the Fee-for-
Service graph: In a Fee-for-Service model, the breakeven point refers to the level of
service at which an organization neither generates profit nor sustains loss. The profit
wedge, on the other hand, denotes the region above the breakeven point where an
organization is earning more than it is expanding (Paff, 2021).
