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AHIP AHM-540 Exam - Topic 1 Question 130 Discussion

Posted by Venita on Jul 16, 2026 at 05:38 PM

The Midwest Health Plan delegated utilization review (UR) activities to the Tri-City Utilization Review Organization. After Tri-City improperly recommended denial of payment for services to a Midwest plan member, the plan member filed suit. The court ruled that Midwest was responsible for Tri-City's actions because of the relationship between Midwest and Tri-City. This situation is an illustration of a legal concept known as

Suggested Answer: A

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12 comments · newest first
RE
Rebecka 2 months ago
I’m torn between A and D. But A feels right. Midwest should oversee their delegates.
LE
Leslee 2 months ago
Agreed! Vicarious liability makes sense here. They chose Tri-City.
LO
Louisa 2 months ago
I think it's A) vicarious liability. Midwest is responsible for Tri-City's mistakes.
VI
Viva 2 months ago
Wait, how can they be liable for someone else's mistake?
AL
Alesia 3 months ago
Classic case of vicarious liability, no doubt.
EU
Eun 3 months ago
Surprised the court ruled that way! Seems unfair.
BE
Ben 3 months ago
I don't think it should be Midwest's fault though.
TE
Tenesha 3 months ago
That's definitely vicarious liability in action.
AV
Avery 3 months ago
I definitely recall discussing vicarious liability in relation to healthcare organizations, so I'm leaning towards that answer.
DA
Dante 3 months ago
I feel like this could also relate to subdelegation, but that doesn't seem to fit as well as vicarious liability does.
CA
Caren 4 months ago
I'm not entirely sure, but I remember something similar in class where the main organization was liable for its subcontractor's mistakes.
MA
Mabel 4 months ago
I think this is about vicarious liability since the Midwest Health Plan is held responsible for Tri-City's actions.
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