PO Discounts
PPO, Preferred Provider Organization, is mainly an "under-raps" or silent activity that mainly highlights how a solitary unit can and does take un-permissible discounts at the payment of the medicinal claims of clients or patients. This particular activity is silent because the service provider has not idea that a discount will be taken or whether it is right to do so.
The complexities lying in the understanding of a PPO can be made easier by understanding the parties involved who demand or ask for the discounts by the medical centers. These parties can be directly or indirectly linked to the business and encompass institutions like insurance corporations, self-insured owners, health preservation groups, union trusts, (and more recently, with the concept of a returning fee) supervised care associations and third-party managers have also joined the party. Another new concept, "broker" of discounted rates further complicates matters as an entity solely responsible for such activity emerges onto the scene. Of course, one way of avoiding PPO discounts is when the hospitals completely identifies the parties involved and hinders their activities legally; another barrier here though is if the federal or state law is handling the project.
The introduction of RUG-53 on Jan 1, 2006, indicated the addition of further new categories in the Medicare reimbursement Prospective Payment System since its initiation 8 years ago. Nine new paying groups, making a total of 23, were added within the rehabilitation category. The main aim was to be able to provide more finances for the complicated medicinal expenses while still maintaining a regular and neutral budgeting format. Keeping this in mind, the Case-Mix Indices were rearranged, and the refund was restructured amongst the top 35 paying units, making the new additional 9 units pay more and have the highest Mix Indices Values than the other 26 and the last 18 paying units facing a small percentage increase in their contribution.
Bibliography
http://www.hfma.org/hfm/2006archives/month11/silentppo.htm
Speisman, A. (2006) "Challenging Silent PPO Discounts," QAMCO, Member of the Nevada Chapter.
Hachenburg, M. "Challenging Silent PPO Discounts," QAMCO.
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