Business Finance
Individual Project

Question Description

“The complexity of financing in health care is one of the primary characteristics of medical care delivery in the United States” (Shi & Singh, 2012, p. 129). There are numerous reimbursement methods (e.g., capitation, fee-for-service, package pricing, etc.) that are used by health care organizations and providers to get paid for the health care services that they provide. Building upon your Individual Project from Unit 1, write a 3-5 page paper not including a title page and reference page that contains the following:

  • Summarize 3 different reimbursement methods that are used by health care providers and organizations.
  • Choose which method(s) will work best for the health care facility that you have proposed to be developed, and explain why you chose that method(s).
  • Discuss the pros and cons of the reimbursement method(s) that you chose.
  • Discuss the impact that the method(s) may have on the financial operations of the facility that you chose.

Note: You should include a minimum of 3 references, properly cited in APA format.

Final Answer



Reimbursement Methods
Institutional Affiliation:




Healthcare provision is one of the primary necessities for people in a country because it is
vital in the control of mortality rates. According to the regulations made in the United Nations, a
government should ensure that all citizens have access to medical care which is done by the
establishment of organizations such as hospitals, clinics and dispensaries. The government also
plays a part in the introduction of programs that assist patients in catering for their medical bills.
Apart from the social healthcare facilities that are provided by the state, there are also provisions
by private organizations that develop private hospitals and clinics to cater for patients. In both
the private and public agencies, the financing has been one of the involved aspects, and various
reimbursement methods are used by organizations for patients to pay for the services they are
provided with by these organizations.
Reimbursement Methods Used by Healthcare Providers
To obtain the best value of the investment that is received in health care, discussions on
how economic and health care incentives can be aligned to achieve the ultimate goals have
become crucial. One of the methods used for payment includes the episode-of-care fee which is
used to define a single amount that is used to cover for treatment that is done during a single
episode of care, for example, the treatment of a patient with a heart attack. This method prevents
the payment of every service tha...

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UT Austin

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