prospective payment system

January 2005
Taber's Cyclopedic Medical Dictionary;2005, p1787
Reference Entry
A definition of the term "prospective payment system" is presented. The term refers to a method of payment for patients diagnosed with a specific disease. A fixed, predetermined amount is allocated to the patient which can be reimbursed. It is also known as payment-by-diagnosis and was developed for use with Medicare patients.


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