Under the Prospective Payment System (PPS), Hospitals Treating Medicare Patients

question 72

Multiple Choice

Under the prospective payment system (PPS) , hospitals treating Medicare patients are reimbursed according to

• A) a new fee schedule established in 1983.
• B) preestablished rates for each type of illness treated based on diagnosis.
• C) preestablished rates for each type of hospital stay based on services.
• D) a hospital capitation plan.

---

Definitions:

Principal

In finance, the original sum of money borrowed in a loan, or put into an investment. In mathematics, it can refer to the principal amount, or initial size of a quantity before interest or growth.

Nearest Cent

Rounding a monetary amount to the closest cent, typically as part of currency calculations to ensure practical transactions.

Decimal Places

The number of digits to the right of a decimal point in a number.

Exponential Rate

A growth rate characteristic of functions of the form y = a * e^(bx), where e is the base of the natural logarithm, approximately equal to 2.71828.