Discuss the advantage and disadvantage of the following hospital payment systems on cost containment and provider behavior:

Discuss the advantage and disadvantage of the following hospital payment systems on cost containment and provider behavior:

• Fee-for-service
• Per diem
• The DRG-based payment system (i.e., Medicare’s Inpatient Prospective Payment System)
• Capitation
SLP Assignment Expectations:
• Cite all sources and provide a reference list at the end of the paper.

REFERENCE/ INFO

Medicare Payment Advisory Commission. (2010). Medicare Payment Basics: Hospital Acute Inpatient Services Payment System. Available at http://www.medpac.gov/documents/MedPAC_Payment_Basics_10_hospital.pdf (Retrieved 11/21/2012)

Medicare Payment Advisory Commission. (2010). Medicare Payment Basics: Outpatient Hospital Services Payment System. Available at http://www.medpac.gov/documents/MedPAC_Payment_Basics_10_OPD.pdf (Retrieved 11/21/2012)

Centers for Medicare and Medicaid. (2010). Hospital Outpatient Prospective Payment System. The Medicare Learning Network Payment Systems Fact Sheet Series. Available at http://www.cms.gov/MLNProducts/downloads/HospitalOutpaysysfctsht.pdf (Retrieved 11/21/2012)

Centers for Medicare and Medicaid. (2009). Acute Care Hospital Inpatient Prospective Payment System. The Medicare Learning Network Payment Systems Fact Sheet Series. Available at http://www.cms.gov/MLNProducts/downloads/AcutePaymtSysfctsht.pdf (Retrieved 11/21/2012)

Office for Oregon Health Policy and Research. (2008). Healthcare Payment Reform & Provider Reimbursement: A Summary of Strategies for Consideration by the Oregon Health Fund Board. Available at http://www.oregon.gov/OHPPR/HFB/Delivery/Payment_Reform_Provider_Reimbursement_Paper.pdf?ga=t (Retrieved 11/21/2012)