prospective payment assessment commission
managed care
reimbursement mechanisms
diagnosis-related groups
concepts
Medicare Payment Advisory Commission
In 1983, the U.S. federal government initiated a new method of payment for Medicare hospital services. The prospective payment system (PPS) created a reimbursement mechanism in which scientifically clustered diagnoses known as diagnosis-related groups (DRGs) would have predetermined compensation amounts, regardless of the hospitals' actual costs. [Source: Encyclopedia of Health Care Management; Prospective Payment System]
prospective payment system
finance