Cost Control

Abstract The cost of our health care system is quickly adequate senseless. While many solutions are being offered, they typically orchestrate only part of the health care equation, and most much are grounded in a perspective that favors one arena over others. A real solution will relate grief from all in the healthcare environment, which includes employers, government, offer uprs, insurers, pharmaceutical, medical applied science companies, and consumers. Reimbursement dollars flow from insurers and the government to hospitals and doctors. Methods for reimbursing healthcare providers and facilities are becoming much frequent when addressing healthcare finance. Unfortunately, defining the order of reimbursement and illustrating solutions to various problems incorporating these reimbursement methodologies oft fails to convey the dynamic nature of honorarium systems or to go by the context for informed decision-making. Three reimbursement methods are cost-based reimbursement, prospective renderment, and capitation. Cost-based reimbursement results in a payment to the provider based upon the cost of the resources consumed to provide care. Cost-based reimbursement is a form of retrospective reimbursement. The amount to be paying(a) to the provider is determined after the service is rendered.

Prospective payment methods determine the amount to be paid to the provider earlier the service is rendered. Diagnosis-Related Groups were introduced in 1983 as the method succeeding cost-based reimbursement to pay hospitals for Medicare inpatients in the United States. (Shi & Singh) Other prospective payment methods retain been subsequently adopted to include Ambulatory Payment motley for outpatients and Resource Utilization Groups for skilled nursing facilities. Capitation represents a method to pay providers that is usually associated with managed care governing bodys in the United States. The provider agrees to provide a menu of services to the managed care organizations... If you want to get a full essay, order it on our website: Orderessay

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