Per Diem Rate
A per diem rate is a set daily charge for services provided by a healthcare facility, often used in patient billing regardless of the specific services rendered.
What is a Per Diem Rate?
A per diem rate is a daily allowance provided to individuals, often employees, to cover expenses such as lodging, meals, and incidental costs incurred while traveling for official business. These rates are typically established by governmental bodies or organizations to ensure fair and consistent reimbursement for travel-related expenditures. They are set to reflect the average costs in a particular area, with different rates for standard and non-standard locations.
In a healthcare context, a per diem rate can also refer to a fixed daily payment made to a healthcare facility for services provided to a patient, regardless of the actual cost of those services. This payment structure is common in certain types of care, such as skilled nursing facilities or rehabilitation centers, and aims to simplify billing and payment processes. The per diem rate covers all services provided within a 24-hour period, including room and board, nursing care, and other essential services.
What is the difference between a Per Diem Rate and DRG?
While both per diem rates and DRGs are payment models in healthcare, per diem is a fixed daily payment regardless of services, while DRG is a fixed payment based on a patient's diagnosis and procedures. Per diem rates are common in settings like skilled nursing, while DRGs are used for hospital inpatient stays.
A per diem rate is a fixed daily payment, while a DRG is a fixed payment based on the patient's diagnosis and procedures.
Per diem rates are often used in facilities like skilled nursing or rehabilitation centers for services provided within a 24-hour period. DRGs are used for hospital inpatient stays, categorizing patients into groups with similar clinical characteristics and expected resource utilization.
Per diem simplifies billing by covering all services within a 24-hour period, while DRGs aim to incentivize efficient care by providing a single payment for an entire hospital stay based on the patient's diagnosis.
What are examples of a Per Diem Rate?
A skilled nursing facility receives a fixed per diem payment of $200 from an insurance company for each day a patient stays, regardless of the specific services provided that day.
A rehabilitation center bills a flat daily rate of $500 to cover all services for a patient's recovery, including therapy sessions, meals, and room and board.
A hospital hires a per diem nurse who is paid a set rate of $300 for each 12-hour shift, rather than an hourly wage, to cover staffing needs.
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