What Is Medicare PPS?

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    Peggy Mace
    Most of the U.S.
    A Prospective Payment System (PPS) is a method of reimbursement to Medicare providers that is intended to motivate them to provide patient care efficiently and effectively without spending on unnecessary services. Providers are paid a predetermined, fixed amount for a certain length of hospital stay based on a unique assessment classification of each patient. It applied only to Part A inpatients (except for HMOs and home health agencies).
    Answered on May 16, 2013
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