Question

If Fair PPO offers to contract for inpatient services with your hospital via per diem rate of $500, what key pieces of data are required to determine if that amount is adequate to cover the cost of a typical patient?

Answer 1

To determine if the per diem rate of $500 is adequate to cover the cost of a typical patient, key pieces of data such as the cost of a typical patient, length of stay, and insurance coverage need to be considered.

Step-by-step explanation:

In order to determine if the per diem rate of $500 is adequate to cover the cost of a typical patient, several key pieces of data are required:

1. Cost of a typical patient: This includes the cost of medical procedures, tests, medications, and any other necessary treatments for a patient's condition. This data can be obtained by analyzing the hospital's financial records and calculating the average cost per patient.
2. Length of stay: The per diem rate assumes a daily payment, so it is essential to know the average length of a patient's stay in order to determine if $500 per day is sufficient to cover the entire stay.
3. Insurance coverage: It is important to consider the patient's insurance coverage and determine how much they will be responsible for paying out-of-pocket. This data can be obtained from the insurance company or the patient's medical records.

By analyzing these key pieces of data, the hospital can determine if the $500 per diem rate is adequate to cover the cost of a typical patient.