Certified Revenue Cycle Representative (CRCR) Practice Exam

Which of the following is NOT a typical form of hospital payment contracting?

1. Per Diem Payment

2. Bundled Payment

3. Contracted Rebating

4. Fixed Contracting

The correct answer is: Per Diem Payment

In assessing the various forms of hospital payment contracting, it is important to understand the definitions and characteristics of each payment method. The term that stands out as not typically representing a standard hospital payment contracting method is contracted rebating. Per Diem payment refers to a reimbursement model in which hospitals receive a fixed amount for each day a patient spends in their facility, which is common in healthcare contracts. Bundled payment involves a single payment for all services associated with a treatment or condition over a specified time period, promoting efficiency and coordination among providers. Fixed contracting is also a recognized form in which a predetermined price is established for services, regardless of the actual costs incurred. However, contracted rebating is less common in the context of hospital payment contracting. This term generally refers to agreements related to price adjustments or discounts often negotiated with payers or manufacturers, not a direct method of payment for patient care services. Understanding the nuances and applications of these terms helps clarify why contracted rebating would not be considered a standard form of payment contracting in hospitals.