Question

Which answer displays the correct order of steps per diem payment determinations?

A. Wage index adjust; choose base rate; adjust for case mix; adjust for day of stay; sum the components
B. Adjust for case mix; choose base rate; wage index adjust; adjust for day of stay; sum the components
C. Adjust for day of stay; adjust for case mix; choose base rate; wage index adjust; sum the components
D. Choose base rate; wage index adjust; adjust for case mix; adjust for day of stay; sum the components

Answer 1

The correct sequence for per diem payment determination is to start with choosing the base rate, then adjust for wage index, case mix, day of stay, and lastly, sum all the components together.

Step-by-step explanation:

The correct order of steps for per diem payment determinations is found in option D: Firstly, you choose the base rate that applies to the specific type of care or service being provided. Afterwards, you make adjustments based on the wage index to reflect geographic variations in labor costs. Next, you adjust for case mix, which accounts for the clinical complexity and resource needs of the patient group. The fourth step involves adjusting for the day of stay, as costs can vary depending on whether it's early or late in the patient's stay. Finally, you sum all the components to arrive at the final per diem payment.

Answer 2

The correct order of steps for per diem payment determinations is D, which starts with choosing the base rate, followed by wage index adjustments, case mix adjustments, day of stay adjustments, and summing up all components.

Thus, the correct option is D.

Step-by-step explanation:

The correct order of steps for per diem payment determinations is: D.

Choose base rate; wage index adjust; adjust for case mix; adjust for day of stay; sum the components.

1. The first step is to choose a base rate that represents the starting point for the per diem rate calculation.
2. Next, the wage index is applied to adjust the base rate according to geographic variations in labor costs.
3. After the wage index adjustment, the next step is to adjust for case mix, which accounts for the clinical complexity and resource needs of the patient's condition.
4. Following the case mix adjustment, adjustments for the day of stay are made, acknowledging that the cost of care may change as a patient progresses through their hospital stay.
5. Finally, all the components are summed to determine the final per diem payment rate.

Therefore, the correct option is D.Choose base rate; wage index adjust; adjust for case mix; adjust for day of stay; sum the components