In 1983, Medicare instituted a prospective payment system (PPS) for reimbursement to hospitals that provide services to Medicare patients, based on Diagnosis-Related Groups (DRGs). This system pays hospitals a fixed amount for patient care based on the diagnosis and procedure, rather than on the actual cost of care provided.

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In 1983, Medicare

Question 27

Multiple Choice

In 1983, Medicare:

A) instituted a prospective payment system for reimbursement to hospitals that provide services to Medicare patients.
B) decided to allow hospitals to charge customary, reasonable, and prevailing rates for Medicare patients
C) began paying hospitals on a fee-for-service basis
D) forced physicians to accept a DRG payment as payment-in-full for office visits

Correct Answer: