Which of the following applies to a method of containing hospital costs that is based on an average cost for treatment of a patient's condition?

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Quizplus · Accepted Answer

Diagnostically related groups (DRGs) is a method of containing hospital costs based on an average cost for treatment of a patient's condition. The hospital receives a fixed payment for each patient based on the DRG code assigned to the patient's diagnosis or condition, regardless of the actual cost of treatment. Capitation is a payment model in which healthcare providers are paid a fixed amount per patient per period of time. Fee-for-service is a payment model in which healthcare providers are paid for each service or treatment provided. Allowable charges refer to the maximum amount that a health insurance plan will pay for a specific covered service or treatment.

Which of the Following Applies to a Method of Containing