Breondra, DRG’s provided other benefits over the FFS system by encouraging better quality of care and less time for inpatient stays (Levinson, 2014). This is by encouraging hospitals to improve the quality of care at discharge to prevent patients from being readmitted before a 30-day period for the same illness. The hospitals also need to treat and discharge in a timely manner to make a profit under DRG’s, which in most cases benefit both Medicare and the beneficiary. The introduction of the inpatient prospective payment system (PPS), was intended to motivate hospitals to change the way they deliver services (David C., 1992). With DRGs, Medicare capped their payments in an effort to ensure fair compensation for services provided without
