Reimbursement Methods In Healthcare Organizations

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Reimbursement methods are available when hospitals and other health care institutions is contracted through Managed Care Organization (MCO) hospitals and other health care institutions can use one or more reimbursement as they want as long it’s through MCO. There are several types of reimbursement methods which some included: Straight Charge, Discount on Charges, Per Diem Charges, and DRGs .
In straight charge reimbursement, MCO will have to agreed to pay charges straight out only if the health care institutions will not offer any discount or MCO wants to have a contract with no balance billing, If not, MCO pays actually how the amount due at time of service without any discount. This reimbursement method is the simplest payment method but is the most expensive out of all the methods. …show more content…
With straight discount on charges, once a healthcare institution submit the bills to MCO and MCO received the bills it then decides to discount the bill based on what the agreed on previously percentage are. Then, MCO will sent a payment to the institution. The institution will take this payment as payment in full and write off the remaining balance. Sliding scale discount on charges is option for healthcare institutions. Sliding scale discount offers discount depending on what services is provided. For example, Grady offers “Grady cards” it’s like health insurance but it's based your income. So if your income is very low a patient might only have to pay $25 for his or her medical

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