Paying for Hospital Services Assignment Example | Topics and Well Written Essays - 750 words

Paying for Hospital Services - Assignment Example Here, patients are advantaged in a way that they enjoy the freedom to choose directly on the physician they want and generally benefit from a sufficient access to health care services. In addition, these patients can see their physicians even out of state and they do not have to wait for long to consult a specialist. The disadvantage of FFS is that, they are not quite affordable when compared to other mechanisms. Since it gives providers a strong incentive to offer more and rewarding items, FFS can be a disadvantageous tool for containing costs. Lastly, it is anticipated that the fee application plans must comprise lots of administration costs to view resources required for monitoring, adjustments, and monitoring of schedules (Medicare Payment Advisory Commission, 2010). Per Diem simply involves daily payment of services given by physicians or the hospital. It is beneficial because it encourages physicians to deliver better services. In some cases, the average per diem rate is forthright to implement and calculate since it can be founded on the total historical expenses divided by the entire number of bed-ways for a given group of services, such as maternity care. The average rate in this method can also be adjusted to mirror case-mix and patient characteristics, which may be a significant transition method, since per diem are manageably simple to implement and can be a good starting point when collecting data essential in case-based systems (Office for Oregon Health Policy and Research, 2008). According to the Centers for Medicare and Medicaid (2009), the Diagnosis-Related Groups system classifies patients into groups basing on their economic and medical records, similar hospital resource costs and use. Here, providers are paid at a fixed rate for every discharge depending on the diagnosis, type of discharge, and treatment. For this reason, DRGs possess a