![]() Ultimately, the concept is that this will result in less expensive care for patients who are paying through other means.Īnother important goal that prospective payment systems strives for is transferring financial risk to the provider, not the patient. This encourages them to perform the procedure as economically as possible to keep as much of the payment as possible. The main goal of implementing the prospective payment system is to reduce the cost of medical care.īy providing a fixed amount, doctors and hospitals know how much they will be paid for a certain procedure. What is the Purpose of the Prospective Payment System? Hospitals and other healthcare providers use the rates set by CMS to plan how to economically deliver patient care. PPS uses predetermined, fixed amounts that can be modified by CMS based on changes in the costs of providing care and factors like inflation. According to CMS, “CMS uses separate PPSs for reimbursement to acute inpatient hospitals, home health agencies, hospice, hospital outpatient, inpatient psychiatric facilities, inpatient rehabilitation facilities, long-term care hospitals, and skilled nursing facilities.” The amount of the reimbursement depends on the service being provided and where it is provided. ![]() This system is used to encourage healthcare providers to be as economical as possible, as they get to keep the part of this fixed amount that is not spent on providing care. CMS is the government agency responsible for running both Medicare and Medicaid.Ī PPS is a method of reimbursement in which CMS payments to healthcare providers are made using a predetermined, fixed amount based on the service being provided. PPS stands for “ prospective payment system” and is a classification system used by the Centers for Medicare and Medicaid Services (CMS).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |