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Medicare changed payments to hospitals from cost based to DRG in 1983.  What benefit or risk did Medicare obtain by changing the payment structure?

Discussion 1
Healthcare costs

Rising costs in healthcare have driven the industry to be more fiscally responsible.  Some of these are: A) the aging population B) technology C) prescription drugs D) chronic diseases E) compliance and litigation.  Pick one topic and explain how it is increasing costs in healthcare and what you would do as a manager to mitigate them. (200 – 300 words)

Payment systems

Medicare changed payments to hospitals from cost based to DRG in 1983.  What benefit or risk did Medicare obtain by changing the payment structure? What benefit or risk did the hospitals obtain by this change? As a hospital manager, what are some of the things you can do to manage admissions based on DRG payment. (200 – 300 words)

Contracting with Health Plans

Cost shifting has become more prevalent in the industry.  Briefly discuss how, as a hospital, it may influence your negotiation with a health plan.  Also include in your discussion at least three items on the contract language you want to include and why. (200 – 300 words)

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