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prospective payment system

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
prospective payment system (PPS),
a payment mechanism for reimbursing hospitals for inpatient health care services in which a predetermined rate is set for treatment of specific illnesses. The system was originally developed by the U.S. federal government for use in treatment of Medicare recipients. See also diagnosis-related group.


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The report, which was required by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), describes the steps to be taken by Congress to implement a fully bundled prospective payment system (PPS) for dialysis services.
A new rule to improve the accuracy of Medicare's payment under the acute care hospital inpatient prospective payment system has been proposed by the Centers for Medicare and Medicaid Services.
Along with political debates over Medicare's Part D prescription drug benefit and other Medicare issues, he would oversee the ongoing reconfiguration of the inpatient prospective payment system.
 
 
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