Spring week1
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hmgt_322_discussion.docx
Choose ONE of the following options to discuss: (Try not to repeat the same advantage or disadvantages that others have already posted). Please discuss thoroughly.
a) You just started your new job as a Health Services Manager at a local hospital. The CEO wants your opinion on the advantages and disadvantages of various third-party reimbursement arrangements. Pick one of the reimbursement arrangements discussed in this week’s reading and discuss ONE advantage and ONE disadvantage. The reimbursement arrangement to be discussed is Per Diem( info below).
-Per Diem
Healthcare organizations receive a per day reimbursement for care provided to the patients of third-party payers. Because the third-party payer sets the per diem rate prospectively, or prior to the provision of care, per diem as a method of payment provides both financial risks and financial incentives to the healthcare organization. In the event that the organization provides care for a cost greater than the per diem rate, the organization incurs a loss. In the event that the organization provides care for a cost less than the per diem rate, the organization realizes a profit. However, if the third-party payer does not monitor lengths of stay, the healthcare organization can extend lengths of stay to recover excessive per diem costs. Because per diem rates are generally the same for each day of a length of stay, this method of reimbursement assumes that costs are the same for each day of a length of stay. This assumption is true for many extended care organizations, but not for acute care organizations in which the patient incurs a greater proportion of the costs during the early days of the admission because of diagnostic testing.
Initial response is due by Day 3. Once you posted your initial discussion based on the above, respond to TWO of your fellow classmates’ answers by Day 7. In responding, either constructively expand on their statement and/or add discuss an additional advantage or disadvantage.
