Essay on Benefits And Disadvantages Of Hospital Payment Systems

1384 Words May 7th, 2016 null Page
Hospital payment systems can have their advantages and disadvantages in relation to provider behavior and cost containment. There are also several types of payment methods: fee-for-service, per diem, DRG- based payment system, and capitation that will be discussed along with the advantages and disadvantages of those payment methods. Also, we will be discussing the difference in Medicare payment methods for outpatient services and physician services, as well as, the difference between global and bundle payments. The first payment method Medicare used was a fee-for-service payment method. These are the most flexible type of health insurance available. Patients have an unlimited choice of doctors, hospitals, and other healthcare providers to choose from, and can be seen by the doctor whenever needed. There are no waiting periods required when requesting the advice and consultation of a specialist, unlike managed care policies where the patient may need to wait for for approval for a treatment or procedure, or a referral to an in-network specialist. There is a decreased risk for hospitals, and this method is accepted in all healthcare systems. The disadvantages are the complex administrative needs for hospitals. It actually encourages providers to use more services, which can result in increased cost of providing inpatient care. Members have to complete their own claim forms and are responsible for all paperwork associated with their claims. Deductible amounts must be…

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