2.7
Capitation and fee-for-service (FFS) are different modes of payment for healthcare providers. In capitation, doctors are paid a set amount for each patient they see, while FFS pays doctors according to what procedures are used to treat a patient. Both systems are in widespread use in the U.S. healthcare system, but FFS has been in decline over the past decade.

2.8
A.
Cost-based reimbursement

A reimbursement methodology based on the costs incurred in providing services.

B.

Charge-based reimbursement

A reimbursement methodology based on charges (chargemaster prices).

C.

Per procedure. Under per procedure reimbursement, a separate payment is made for each procedure performed on a patient. Because of the high administrative costs associated with this method when applied to complex diagnoses,per procedure reimbursement is more commonly used in outpatient than in inpatient settings.
D.

diagnosis. In the per diagnosisreimbursement method, the provider is paid a rate that depends on the patient’s diagnosis. Diagnoses that require higher resource utilization, and hence are more costly to treat, have higher reimbursement rates. Medicare pioneered this basis of payment in its diagnosis related group (DRG) system, which it first used for hospital inpatient reimbursement in 1983.

E.

Per diem

A reimbursement methodology that pays a set amount for each inpatient day.

F.

Bundled (global) pricing.
The payment of a single amount for the complete set of services required to treat a single episode. Also sometimes applied to an entire population (capitation).

Capitation.
A reimbursement methodology that is based on the number of covered lives as opposed to the amount of services provided. See fee-for-service.

2.1

A.

700,000

B.

8,500

3.3

A.

The income statement period that it accounts for as well