Medicare's prospective payment system sets fixed reimbursements to hospitals that treat patients covered by the program.

Name: Medicare's prospective payment system sets fixed reimbursements to hospitals that treat patients covered by the program.
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Medicare's prospective payment system (PPS) establishes predetermined, fixed reimbursement rates for hospital services to patients covered by Medicare, based on the diagnosis and procedures rather than the actual cost of care.

Medicare's Prospective Payment System Sets Fixed Reimbursements to Hospitals That