ABSTRACT

Hospital revenue components basically consist of two kinds: tariffs of patients and insurance. Other sources of hospital revenue come from both nonmedical revenue centers such as funeral homes, parking lots, cafeterias, auditoriums, training, incinerators, and wastewater treatment plants and medical revenue centers such as drugstores and ambulances. Prospective payment is made to fund an agreement and further made before the provision or service is performed, no matter how much the actual cost spent by the hospital, such as through a fixed payment per individual per time unit. Retrospective payment is payment per item because patients pay the full cost to the hospital after the service, such as after diagnosis action, pharmacy, therapy, and so on. The hospital market is still dominated by a claim ratio imbalance between independent and nonindependent groups. Independent groups consist of nonwage workers and nonworkers. Nonindependent groups consist of premiums for aid recipients and wage workers and possess utility up to only 5".