Which PPS provides a predetermined payment based on the patient's principal diagnosis, comorbidities, complications, and procedures?

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The correct choice is based on the Inpatient Prospective Payment System (IPPS), which is a Medicare payment system designed for inpatient hospital services. IPPS establishes a fixed payment amount that hospitals receive for each admission based on the patient's diagnosis-related group (DRG). This payment is predetermined and takes into account various factors such as the patient's principal diagnosis, associated comorbidities, complications, and any procedures performed during the hospitalization.

Under the IPPS, the payment structure is intended to encourage efficient billing and care management, as hospitals are incentivized to provide quality care within the fixed payment amount. The system aims to control healthcare costs while ensuring patients receive the necessary level of care based on their health conditions.

Other options like the Skilled Nursing Facility Prospective Payment System (SNF PPS), the Medicare Physician Fee Schedule (MPFS), and the Outpatient Prospective Payment System (OPPS) serve different functions and patient populations. SNF PPS focuses on skilled nursing facilities, MPFS on physician services, and OPPS on outpatient care, none of which use the same DRG-based payment methodology that characterizes the IPPS.

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