The following statements are about various reimbursement arrangements that health plans have with hospitals. Select the answer choice containing the correct statement.
Okay, let me think through this step-by-step. The key is to focus on the distinctions between the arrangements, like whether the payment is based on total volume or a fixed amount per day.
This question seems straightforward, but I want to make sure I understand the differences between the reimbursement arrangements before selecting an answer.
I'm going with D. In markets with high competition, health plans would likely negotiate discounted charges with hospitals to keep costs down. Sounds like the most common arrangement to me.
Hmm, this is a tricky one. I'm leaning towards C, since a negotiated straight per-diem charge seems like a simple and straightforward way to reimburse hospitals.
I think option B is the correct answer. Under a DRG-based reimbursement, the hospital is paid a fixed amount based on the diagnosis, so any savings from reduced length of stay go to the health plan, not the hospital.
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