Payment systems can be categorized by 2 dimensions

1. Payment Basis
2. Unit of Payment

The basis of payment defines how the actual payment will be made. There are 3 primary methods-

1. Cost (where you are reimbursed for what you spent plus a percentage- AKA Cost Plus Reimbursement)
2. Fee Schedules MOST COMMON (like Medicare or you can make your own. You can also do a % of Medicare such as 150 or 200%).
   • e.g. DRGs, APCs, which are codes on the schedule with a defined amount
3. Price Related
   • e.g. 75% of billed charges. You negotiate for a % of the total amount on your charge description master (CDM).