What payment method covers all inpatient services utilized for each procedure during a beneficiary's hospital stay?

The case rate payment method is designed to cover all inpatient services associated with each specific procedure during a beneficiary's stay in the hospital. This means that instead of billing for each service or item individually, hospitals receive a predetermined, fixed amount for each case or procedure. This approach encourages efficiency and incentivizes hospitals to manage costs while providing the necessary care for the patient, as all services related to the case are bundled into a single payment.

In contrast, other payment methods do not encompass all inpatient services in the same manner. For example, fee-for-service pays for each service separately, which can lead to higher costs if many services are provided. Per diem rates charge a set daily rate for hospital stays, which may not fully account for the specific services rendered for a particular procedure. Capitation, on the other hand, is a fixed amount paid per patient, typically for outpatient services and ongoing care, rather than for a specific hospital stay or procedure. Thus, case rates provide a targeted solution for inpatient services, aligning reimbursement with the specific procedure conducted during the hospital stay.