Final answer:
One advantage of a Managed Service Health Plan (MSHP) is that it provides a fixed amount of reimbursement per person enrolled in the plan, regardless of the number of services provided. This incentivizes healthcare providers to be more efficient and cost-effective.
Step-by-step explanation:
One advantage of a Managed Service Health Plan (MSHP) in a medical office or healthcare system is that it provides a fixed amount of reimbursement per person enrolled in the plan, regardless of the number of services provided. This can incentivize healthcare providers to be more efficient and cost-effective in their service delivery, as they are not financially rewarded for providing unnecessary services.
For example, in a fee-for-service system, providers may have an incentive to order more tests or procedures to increase their reimbursement. In contrast, in an MSHP, providers have a financial incentive to focus on preventive care and allocate resources efficiently to improve patient outcomes.