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Unraveling Medicare's prospective payment system for hospital outpatient care
1Birch & Davis Health Management Corp, Silver Spring, Maryland, USA.
Abstract:
This article explains the construction and principal components of Medicare's new hospital outpatient prospective payment system. Examples illustrate the calculation of the payment rates and other amounts that hospitals are paid under the new system. The article concludes with observations about the new system's construction, and operational steps hospitals will likely take to comply with its reporting requirements and optimize Medicare payments.
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