HCD Healthcare Payment and Delivery Models Exam 2 Practice 2026 – Your Comprehensive All-in-One Guide to Exam Success!

The key idea is that inpatient payments are determined by fixed amounts assigned to diagnosis-related groups (DRGs) and paid per hospitalization event. In this system, when a patient is discharged, the hospital receives a single, predefined amount based on the DRG the case falls into (with adjustments for factors like geography or teaching status). This is what “per-discharge DRG-based” means.

This contrasts with being paid per day (per diem) or per visit (per encounter) or with fixed payments that ignore DRGs. The DRG weight links to the expected resources the case requires, so the payment reflects the overall hospitalization rather than the length of stay or number of visits.