In 1983, the federal government adopted the practice of paying a flat fee for each Medicare patient based on the patient's diagnostic-related group.This cost containment technique provided an economic incentive to providers, specifically hospitals, to minimize the length of stay and other cost parameters.Identify this cost containment technique.

Question

Quizplus · Accepted Answer

The correct answer is B) Prospective payment. This system pays a flat fee for services based on the diagnosis of the patient, encouraging hospitals to control costs by managing the length of stay and resources used more efficiently.

In 1983, the Federal Government Adopted the Practice of Paying