Which payment method pays a daily rate?

Prepare for the Business of Healthcare and Health Policy Test. Study with multiple choice questions and explanations to ace your exam!

The concept tested is how the payment amount is determined in different inpatient reimbursement methods. Per diem payments reimburse a fixed amount for each day a patient is hospitalized, so the payer provides a daily rate that covers care day by day. The total payment equals the daily rate times the number of days in the stay, regardless of the exact mix of services on each day within the negotiated terms. This contrasts with DRG-based payments, which give a single fixed amount for the entire admission based on diagnosis-related groups; capitation, which pays a monthly per-member amount to cover a set of services; and fee schedules, which reimburse for each individual service provided. So the method that pays a daily rate is per diem.