Paying for Hospital and Physician Services

Part I - Paying for Hospital Services

Discuss (in about 2-3 pages) 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

Part II - Paying for Physician Services

Using the background materials and the information you ?nd from the literature and on the Internet, respond (in about 2-3 pages) to the following questions:

1. Discuss the difference in Medicare payment methods for outpatient services and physician services.

2. Discuss the difference between bundled payments and global payments.

Write a 2- to 3-page paper, typed and double spaced, with 12 pt. Times New Roman font and 1-inch page margins. Use headers throughout the paper. This will aid you in not overlooking vital elements of the assignment.