Which of the following statements best describes an unfortunate consequence of using diagnosis-related groups (DRGs) to determine reimbursement? (Select all that apply.)

a. Insurance companies had to greatly increase their funding from employers.
b. The incentive was to undertreat and underuse health resources.
c. Health care providers had to accept losses for each patient treated.
d. Health care providers learned to cheat the system.
e. Health care providers refused to accept more patients whose reimbursement was based on DRGs.
f.
High quality of care was no longer assured.


ANS: B, F
Because costs were contained by both the federal programs and insurance companies, the providers had a strong incentive to undertreat and underuse health resources. The public feared that the quality of care being provided was less to keep costs as low as possible.

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