Diagnosis-related groups (DRGs) have attempted to reduce health care costs by decreasing:
a. hospital admission rates.
b. length of hospital stay.
c. outpatient services.
d. specialty groups.
ANS: B
Correct: Hospitals face a strong financial incentive from the DRG reimbursement system to reduce the client's length of stay and minimize procedures performed. If hospital costs exceed the DRG payment for a client's treatment, the hospital incurs a loss, but if costs are less than the DRG amount, the hospital makes a profit.
Incorrect:
a. Decreasing hospital admission rates has not been shown to reduce the costs of health care.
c. Decreasing outpatient services would actually drive costs up because more services would have to be performed as in-patient procedures.
d. Decreasing specialty groups would not affect hospital reimbursement, which is the focus of the DRG payment system.
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