Hospitals are paid a set fee for treating patients in a single DRG category under Medicare's PPS,regardless of the actual cost of care for the individual.

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This statement is true. Hospitals are paid a fixed amount for each patient based on their diagnosis-related group (DRG) category, regardless of the actual cost of care for that patient. This system is known as Medicare's Prospective Payment System (PPS). The goal of PPS is to encourage hospitals to provide high-quality, cost-effective care by eliminating incentives to provide more services than necessary.

Hospitals Are Paid a Set Fee for Treating Patients in a Single