How Will Each of the Following Bases for Hospital Payment

question 1

Essay

How will each of the following bases for hospital payment affect the number of admissions, the average length of stay, the volume of services per day, and the unit cost of services (cost per service):
Fee-for-service payment
Per diem payment
Fixed-fee per admission

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Definitions:

Bayes Law

A principle that details the likelihood of a particular occurrence, taking into account previously understood circumstances that may have a connection to the occurrence.

Posterior Probabilities

The updated likelihoods of events or hypotheses upon considering fresh evidence or information.

Expected Monetary Value

A statistical technique in decision-making under uncertainty, calculating the weighted average of all possible outcomes, considering both the probabilities and the monetary impacts.

Optimal Act

The best or most favorable action to take in a given situation, often determining the maximum efficiency or minimum cost.