Financial Regulations in Healthcare

Since the hospital prospective payment system (PPS) was introduced in the mid-1980s, hospitals name for been trying to develop a means by which they specter align their pecuniary incentives with those of their physicians. PPS boundarys hospitals to a fixed reimbursement fall launch on diagnosis, with some adjustment establish on the resources call by the patients under certain sn areed circumstances. However, physicians remain reimbursed base on a fee schedule, so that the more than than they do, the more they deposit paid. Therefore, physicians do not have the same incentives to limit cost for enshroudment that hospitals do. Other health care providers; including treat homes, dialysis facilities, ambulatory surgery centers, and managed care plans, now share with hospitals that variant in incentives. These providers are struggling to figure a mode to align their incentives with those of their physicians. (Sadin, 2002) One method that is currently enjoying a mo mentous amount of interest is something called gainsharing or disease management programs. These programs are mean to give physicians a stake in arrogant the entitys costs through financial incentives. This appears, at first glance, to be a natural reaction to the problem of divergent incentives. In each industry some other than health care, a gainsharing program would be simple to implement. However, the health care industry, because of its extremely regulated environment, presents circumscribed challenges for implementing gainsharing programs.

(Imberman, 1995) The first of these challenges is the Stark law of nature. The Stark law prohibits physician! s who have a financial birth with an entity from referring patients for certain types of function to that entity. A gainsharing relationship would clearly be considered a financial relationship falling within the Stark law. Consequently, any hospital or other entity that provides designated health services must find an applicable exception. The moreover exception that has the potential to validate a gainsharing... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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