ABSTRACT
A significant revolution came with the consolidation of the hospital institute incorporation chains. It was a difficult time for many hospitals and many administrators who had grown accustomed to the autonomy and, in some cases, the lack of accountability of the entire system. In cost reimbursement, payment is made according to the length of stay; therefore, longer hospital stays increase hospital reimbursement. Insurance companies pass on the additional costs to the employer, and they increase the premiums. The capitation payment system is the one in which the healthcare provider receives a fixed amount per patient per month to provide specific services. The diagnosis-related group is a form of potential payment under capitation. Under capitation payment, the hospital sees the fixed amount per hour, per month, regardless of the service rendered. Prospective payment system has placed a limit on global hospital revenues; it has state-by-state payment limits.
