Policy is to identify effects of prospective payment systems on acute and emergency care delivered in an acute health care facility. a) Synthesize findings from the literature review with the policy...

Health Care Management 1
Running Head: HEALTH CARE MANAGEMENT
Health Care Management
Health Care Management 2
Table of Contents
Introduction ..................................................................................................................................... 3
Findings........................................................................................................................................... 3
Effect of policy on health care delivery .......................................................................................... 4
Forces that shape the policy ............................................................................................................ 5
Conclusion ...................................................................................................................................... 6
References ....................................................................................................................................... 7
Health Care Management 3
Introduction
In prospective payment system (PPS), service providers are paid a fixed amount of
money to patient regardless of care. This amount is based on particular days of care and fixed
annual reimbursement. In some cases, Medicare pays a fixed amount of money based on
diagnosis-related groups (DRG). In contrast, it is fee-for-service systems. It influences acute and
emergency care services that are delivered through acute health care facility. Along with this,
various social, ethical, legal and political forces shaped this policy and delivery of services.
Findings
In order to control the increasing cost of health care, the federal government established a
prospective payment system in 1983 that provides guidelines for hospitals regarding
eimbursement of in-hospital care of patients. This system changes the reimbursement process
from a charge basis to fixed price system (Lave, 1989). In this, hospitals are paid according to
the diagnosis-related group. Under this system, each case is classified according to diagnosis
elated group and each DRG has assigned a payment weight according to the resources that are
used in care of patients. Prospective payment system doesn’t inte
upt the quality of health care
services of hospitals. Along with this, PPS has an effect on patient’s stability at discharge.
Prospective payment systems are helpful to motivate service providers to provide quality
care to patients with effective and efficient manner without over utilization of services and
equipments. The head of health care organizations are responsible to provide needed services and
care to patients. So, this payment system has built-in-incentive for providers to develop
management patterns in the organizations that are helpful in diagnosis and treatment of the
patient effectively (Richardson, 2011). At the same...