Since providers are not able to negotiate with government


1. Since providers are not able to negotiate with government payers, how can they afford to treat patients covered by those plans when the payment does not cover the cost of care?

2. What are the potential negative ramifications of decreases in Medicare’s payments to physicians?

3. What is the key difference between Medicare’s IPPS and OPPS payment systems?

4. If a facility’s average length of stay for joint replacement patients is 5 days and the average charge per patient is $25,000, which of the following contractual arrangements is most favorable?

a. A case rate of $10,000

b. 65% of charges

c. A per diem rate of $3,000

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Operation Management: Since providers are not able to negotiate with government
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