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.

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