True or False: Increasing profitability threatens the survival of hospitals under fee-for-service reimbursement models.

The statement regarding whether increasing profitability threatens the survival of hospitals under fee-for-service reimbursement models is false. Under a fee-for-service model, hospitals are reimbursed for each service provided, which can promote higher profitability as they have a direct financial incentive to deliver more services. Therefore, rather than threatening survival, increasing profitability can actually bolster the financial health of hospitals operating under this model.

In this context, hospitals that aim for increased profitability may focus on maximizing the volume of services rendered and enhancing operational efficiencies. This aligns with their financial goals while potentially improving patient care through more available resources. The focus on profitability does not inherently jeopardize survival; instead, it reinforces the hospital's ability to continue operating by ensuring they have sufficient income to sustain and expand their services.

The other choices may imply scenarios that misinterpret how reimbursement models work or do not accurately reflect the dynamics of economic incentives within the healthcare system.