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4 Discuss the idea of DRG based prospective payment mechanism for h

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4. Discuss the idea of DRG-based prospective payment
mechanism for hospitals. Discuss the potential effects of
DRG payment on quantity of services produced by the
hospitals, composition of different types of services
offered, incentives for adoption of cost-saving technology,
quality of care and competition among hospitals in the
market.
Solution
DRG based prospective payment system is innovative new
sytem which can help open up new areas where
reimbursement was not payed earlier,
There will be increased competition after DRG payment
implementation which will increase the services offered by
hospitals and DRG has a system to even pay individual
doctors for non-hospital expenses. This is radical in
thinkiing and can help create a new ecosystem where
doctors can care more about patients and can get
reimbursed much more easily.
There are several services that will be offered in future like
home visits for elderly which are required now, rather than
transporting them to hospitals for every small problem.
DRG is surely a patient friendly platform so hospitals will

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4. Discuss the idea of DRG-based prospective payment mechanism for hospitals. Discuss the potential effects of DRG payment on quantity of services produced by the hospitals, composition of different types of services offered, incentives for adoption of cost-saving technology, quality of care and competition among hospitals in the market. Solution DRG based prospective payment system is innovative new sytem which can help open up new areas where reimbursement was not payed earlier, There will be increased competition after DRG payment implementation which will increase the services offered by ...
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