Final answer:
Inpatient hospital settings are reimbursed per discharge of a diagnostic-related group (DRG), which classifies hospital cases to standardize payments based on diagnosis categories and treatment complexity, rather than actual costs.
Step-by-step explanation:
The setting that is reimbursed per discharge of a diagnostic-related group (DRG) is typically the inpatient setting in a hospital. A DRG is a system that classifies hospital cases into groups with the purpose of standardizing payments to hospitals for the care they provide. This classification system ensures that facilities are compensated based on the assigned category of diagnosis and the complexity of treatment, rather than the actual cost of care.
Such a payment model encourages efficiency in inpatient care because the hospital receives a fixed payment for each discharge, regardless of the actual costs incurred during the stay. The study by Stensland, Watson, and Grazier (2012) highlights the economic aspects of psychiatric treatment within community hospitals, where DRG-based reimbursements may also apply. This research can shed light on the difference between costs, charges, and payments for inpatient psychiatric treatment, which would be encompassed within the broader umbrella of DRG reimbursements in medical settings.