behavioural offset

A term of art referring to the shift in the number and mix of services offered or bills generated by health professionals after a change in fees paid by a third party payer. The term was created by the CMS/HCFA and based on the assumption that physicians, when faced with a reduction in payment, will respond by increasing services; a 50% BO means that half the savings from fee reductions will be offset by increased volume and intensity of services.

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