Certified Revenue Cycle Representative (CRCR) Practice Exam

Which of the following is NOT a form of hospital payment contracting?

1. Per diem payment

2. Bundled Payment

3. Fixed Contracting

4. Contracted Rebating

The correct answer is: Contracted Rebating

The correct choice is the one that identifies a payment method that is not traditionally recognized as a form of hospital payment contracting. Contracted rebating is considered more of a pricing strategy or discount mechanism rather than a formal payment structure used for hospital services. In contrast, per diem payment refers to a system where hospitals are paid a fixed amount for each day a patient is hospitalized, which allows for predictable budgeting for both payer and provider. Bundled payment, on the other hand, is a method where providers are reimbursed a single payment for a comprehensive set of services related to a treatment or condition, promoting efficiency and coordination of care. Fixed contracting typically implies a predetermined payment amount for services covered under a contract, offering stability and predictability in revenue for the hospital. These methods are structured around specific arrangements that define how services are billed and how providers receive compensation, which highlights the core focus of hospital payment contracting.