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How will each of the following bases for hospital reimbursem

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How will each of the following bases for hospital reimbursement affect the number of admissions, the average length of stay, the volume of services per day, and the unit cost of services (cost per service):

a. fee-for-service reimbursement
b. per diem reimbursement
c. fixed fee per admission

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Solution Summary

This solution discusses fee-for-service reimbursements, per diem reimbursements, and fixed fee per admissions in a hospital.

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a.) Under a fee for service reimbursement, the number of services provided will likely increase because they are being subsidized. The number of admissions would not be affected in a major way, and the length of stay would likely not be directly affected. The unit cost per service will increase on a fee per service structure, as charges for services will all be ...

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