Question 5: True or False? A hospital caring for a Medicare patient on an inpatient basis generally can increase its reimbursement (payment amount) by providing additional services. Answer: False.
Question 6: Which of the following tends to insulate hospital management somewhat from the financial results of poor financial planning? (Pick the best answer.) Answer: The choices were: A) capitated rates, B) cost reimbursement, C) bundled services, or D) charge payment. The best answer was B) cost reimbursement. Question 7: Medicare pays for hospice services under which of the following: A) Part A, B) Part B, C) Part D, or D) None of the above. Answer: A) Part A. Question 8: The Medical College of Virginia, located in the urban city of Richmond, Virginia, has a wage index of 1.8579. A Medicare patient has just been treated at the College's hospital for viral meningitis during a 5-day length of stay (LOS) (DRG weight: 1.535). Rate Table Hospital Status Labor Non-labor Urban Area 2,800 1,250 Rural Area 2,000 1,000 Reference: Case Study 2 Use the information in the rate table above to calculate the DRG operating payment for this treatment. Answer: Payment = DRG weight x [(Labor amount x wage index) + Non-labor amount] 1.535 X [(2,800 x 1.8579) + 1,250] = $9,904.00 Question 9: Why does market share matter to a health care provider? Answer: A sample answer worth full credit: Greater market share allows for greater leverage when negotiating managed- care contracts. As noted in the text: “Most health care markets are regional in nature, and there are travel limits beyond which most consumers will not venture.” Question 10: True or False? Providing higher-quality care can ultimately lead to increased revenues.
- Spring '16
- Stuart Paxton
- best answer, payment rate