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Compensation and Reimbursement Plans
One way in which an MCO can control cost, quality, and access is through various structured compensation and reimbursement plans. The two most common examples are fee for service and capitation. Moreover, there are different types of reimbursement systems for inpatient and outpatient services. Answer the following questions in regard to the above information:
Examine the three types of inpatient or outpatient reimbursement systems?
Evaluate the key advantages and disadvantages of each system from the point of view of a managed care plan and the hospital?
What is the difference between capitation and FFS? Evaluate the type of market appropriate for each reimbursement method. Support your answer by providing an example of an MCO using either of these methods.
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