Health Information Personnel Practice Test

How does healthcare fraud impact the healthcare system?

1. It increases patient trust and satisfaction

2. It reduces overall healthcare costs

3. It undermines trust and increases costs

4. It enhances patient care quality

The correct answer is: It undermines trust and increases costs

Healthcare fraud significantly undermines trust within the healthcare system and leads to increased costs. When fraud occurs, resources are diverted away from legitimate healthcare services, resulting in inflated expenses for providers and patients alike. This can manifest through unnecessary tests, procedures, or inflated billing practices that eventually contribute to rising insurance premiums and healthcare costs. Moreover, trust is a critical component of the patient-provider relationship. Instances of fraud can lead to skepticism among patients regarding the integrity of their healthcare providers and the efficacy of the healthcare system as a whole. This erosion of trust can result in patients being hesitant to seek necessary care or share vital health information, which can ultimately impact their health outcomes. In contrast, suggestions of increased patient trust, reduced costs, or enhanced care quality directly contradict the reality of the consequences of healthcare fraud. Effective fraud prevention and a transparent healthcare environment are essential for maintaining trust and providing high-quality care at reasonable costs.