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occurring simultaneously. Reimbursement MethodsReimbursementMethodAdvantagesFor StrategicPlanning ofOperationalPerformanceDisadvantagesFor StrategicPlanning ofOperationalPerformanceBest Use(Type of Facility andWhy)Fee for servicePatients receive highly valued service and the provider is able to offersuitable recommendations.Physicians can charge areasonable amount for a plan and can be agile to offer precise assistance to their FFS incentivizes doctors to order unnecessary tests andprocedures to generate more income, and encourages them to practice “defensive medicine.”Hospital, and reason being payments in an FFS model are not bundled. This means that the insurance companies or the government agencies are billed for every test, procedure, and treatment rendered
Title of Paper4patients.Restricted to personal visits and serves as a roadblock in the treatment of conditions through unconventional methods.FFS leads to an increase in overall healthcare costs over time since patients andproviders are not fiscally accountable.whenever a patient visits the doctor, has a consultation, or is hospitalized.EOCReduces high financial risks in the health care for the patients.If the cost of the episode of care is less than the set price, the providers keep the balance. However, if the cost is more, the providers lose money. It gives healthcare providers, payers and purchasers an incentiveto work together to Hospital and reason being, all services related to an episode of care, including physician services, are reimbursed with a single payment to the hospital. This creates incentives for the physicians and hospitals to work
Title of Paper5provide better quality and efficiency.together to improve efficiency in the care ofthe patient.Financial Management PrinciplesFinancial Management PrincipleHow It Is Used to Evaluate OperationalPerformanceBenchmarkingLeaders use benchmarking to learn where an organization is performing well against its peers, and where it needs improvement.Maintainece of financial dataIt enables the organization to keep track of its financial performancePayer-mix breakdown of payersProvides a total for the average amount of charges, payments, and adjustments for each financial class/payer, as well as the percentage of the total charges, payments, and adjustments for each financial class/payer.