Describe how Medicare reimburses the major types of providers, and discuss the implications of these methods for an organization’s resource management.
The Various ways in which Medicare reimburses the service provider are as follows:
1. Discount from Billed Charges : Implications are these are normal losses and can be absorbed by good income and there is no extraordinary loss.
2. Fee for service : This is like any other contractual or agreed payment schedule and normally these are provided for in the budgets and hence does not create any extraordinary loss to healthcare business.
3. Value based reimbursements: Reimbursements are made after specific savings or milestones are achieved. Since these milestones are specifically thought about beforehand, there are no losses.
4. Bundled reimbursements : Implications are these provide net savings since many costs are bundled and then paid off.
5. Shared service reimbursements: apportioned costs are rfeimbursed and hence no net loss.
Describe how Medicare reimburses the major types of providers, and discuss the implications of these methods...
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