Read Chapters 1, 2, and 3 from the course textbook, Essentials of Health Care Finance. As Cleverley and Cleverley (2018) suggest, Until the early 1980s, c

• Read Chapters 1, 2, and 3 from the course textbook, Essentials of Health Care Finance.

As Cleverley and Cleverley (2018) suggest,

Until the early 1980s, cost reimbursement by Medicare was the predominant form of payment for most hospitals and other institutional providers. In addition to Medicare, most state Medicaid plans and a large number of Blue Cross plans paid hospitals on the basis of “reasonable” historical cost. Today, the major payers have abandoned historical cost reimbursement and substituted other payment systems. (p.36)

A healthcare organization’s revenue cycle depends on its ability to provide services to patients. Along with this, it is equally important that healthcare providers accurately charge for services rendered.

In other words, capturing what, when, where, how, why, and who received the service produces the revenue. In your initial post,

• Define the two key elements in historical cost reimbursement (reasonable cost and apportionment); additionally, provide two applicable examples.
• Discuss the relationship between charge capture, charge entry, and charge master. 
• Compare and contrast the five major payment units (historical cost reimbursement, specific services, fee schedules, capitated rates, and bundled services).

Guidelines:

• Your initial post must be a minimum of 500 words.
• Cite sources, if necessary, using APA style.
• Refer to APA StyleLinks to an external site. for citing within your paper and formatting your references list.
• Use your textbook or other sources as needed.