Discuss the advantage and disadvantage of the following hospital payment systems on cost containment and provider behavior:

Part I – Paying for Hospital Services

Discuss (in about 2-3 pages) the advantage and disadvantage of the following hospital payment systems on cost containment and provider behavior:

• Fee-for-service
• Per diem
• The DRG-based payment system (i.e., Medicare’s Inpatient Prospective Payment System)
• Capitation
  Part II – Paying for Physician Services
  Using the background materials and the information you find from the literature and on the Internet, respond (in about 2-3 pages) to the following questions:

1.  Discuss the difference in Medicare payment methods for outpatient services and physician services.

2.  Discuss the difference between bundled payments and global payments.