Operating Cost in Hospitals Has Become Extremely Important as the Reimbursement

question 35

Multiple Choice

Operating cost in hospitals has become extremely important as the reimbursement system is no longer based solely on cost. In the mid-1980s, a system of reimbursement based on specific _______________ was instituted. Under the ______ system, the hospital is reimbursed a flat rate based on a patient's _________ regardless of the associated costs.

• A) flat fee schedules (FFS) / FFS / ability to pay
• B) flat fee schedules (FFS) / FFS / insurance company
• C) diagnosis related groups (DRG) / DRG / diagnosis
• D) diagnosis related fees (DRF) / DRF / insurance group
• E) insurance related fees (IRF) / IRF / insurance provider

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Definitions:

Instrument Payable

A written document that promises the payment of a definite amount of money either on demand or at a future date.

Definite Time

A specified period in contracts or agreements where certain actions or conditions must be met or take place.

Negotiation

The process of discussing and arriving at a mutual agreement between parties, often involving compromise or the making of concessions.

Holder

An individual or entity that possesses or controls a negotiable instrument, security, or other similar documents, legally recognized as entitled to the benefits of ownership.