The old payment method or ____ was based on charges or a percentage of charges that did not promote best practices and quality care because the hospital was paid based on charges;the higher the charges were,the higher was the payment.
A)retrospective payment system
B)prospective payment system
C)preferred provider organization
D)Tax Equity and Fiscal Responsibility Act

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The retrospective payment system was based on charges, which incentivized hospitals to increase their charges in order to get higher payments. This led to a lack of focus on quality care and best practices. In contrast, the prospective payment system (choice B) pays hospitals a fixed amount for each episode of care or diagnosis, which encourages them to be more efficient and to provide high-quality care. Preferred provider organizations (choice C) are a type of insurance plan that contracts with medical providers to offer discounts to their members. The Tax Equity and Fiscal Responsibility Act (choice D) is a piece of legislation from the 1980s that made significant changes to healthcare financing and reimbursement, but it is not directly related to payment methods.

The Old Payment Method or ____ Was Based on Charges