Hospitals Are Paid a Set Fee for Treating Patients in a Single

question 20

True/False

Hospitals are paid a set fee for treating patients in a single DRG category under Medicare's PPS,regardless of the actual cost of care for the individual.

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Definitions:

Managers

Individuals responsible for controlling or administering an organization or group of staff.

Marginal Revenue Product

The extra revenue generated by employing one more unit of a factor, such as labor or capital, holding other factors constant.

Variable Factor

An input whose quantity can change depending on the level of production or the scale of operations in the short run.

Production

The process of creating goods or services by combining labor, capital, and resources to meet consumer demands.