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Prior to July 1, 1998, SNFs were paid retrospectively based on costs. There were per diem...

Prior to July 1, 1998, SNFs were paid retrospectively based on costs. There were per diem limits on room, board, and routine nursing care. There were no limits on ancillary services (drugs and therapy). What problems are associated with the previous payment system?

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Answer :

SNF means skilled nursing facilities .

These are paid retrospectively based on cost.

Problems associated with previous payment system :

* due to previous payment, there is a chance to get limited health care services.

* payment issues may come like, excessive billing etc.

* there is a chance in fraud during in any procedures and care.

* the people may receive transparent care.

* some times the organization management may adjust the money for little services.

* this may leads to financial problems to the health care receivers.

* some times transaction failures may taken place.

* some times there will be not refund for if amount is not used because it was fixed amount.

* it is a one of the financial pressure for health care receivers.

These are the problems are associated with previous payment system.

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