In your post compare and contrast prospective payment system

In your post, compare and contrast prospective payment systems with non-prospective payment systems. Explain the classification systems used with prospective payments. How do the prospective payment systems impact operations?

Solution

The working of prospective payment plans is through fixed payment rate for specific treatments. There can be changes to the rates over time due to several factors like inflation, inability to adjust and accommodate individual patients.

Prospective plan allows the Healthcare provider for receiving same payment for the purpose of providing specific type of payment.

There are several benefits for prospective payment as the plans pay fixed rates and providers

It is possible for insurers to manage and make estimation for payments and costs

It has an effective potential for saving money of insurance companies

It encourages the providers for delivering the efficient care possible

Non prospective plans

Non prospective plans are also known as retrospective plans and they are depended on actual charges. It lets the provider to treat patient and helps for submission of the bill which is itemized for the insurance company.

It helps the insurance company for approving or denying payment for the purpose of treatment

The important benefit of the retrospective payment plans is its ability to let patients have more attentive

The providers in this case are not just limited for the purpose of approved treatment plans