How does the IPPS transfer rule affect payment for discharged patients?

The correct answer highlights that under the Inpatient Prospective Payment System (IPPS) transfer rule, hospitals are reimbursed using a graduated per diem rate for each additional day a patient stays in the hospital, after a certain point.

This per diem payment approach applies specifically in instances where a patient is transferred to another facility instead of being fully discharged. The rationale is that the longer the patient stays, the more complicated and resource-intensive the care may become, justifying a higher payment for extended stays. This system promotes efficient hospital length-of-stay management while ensuring that hospitals are compensated appropriately for the additional care provided.

The other options lack accuracy regarding the specifics of the IPPS transfer rule. For instance, the concept of billing patients a flat fee regardless of their length of stay fails to account for the nuanced payment structure that adjusts based on the time spent in the hospital. The premise that patients cannot be transferred to a post-acute provider does not reflect the reality, as transfers are common; rather, the reimbursement method following the transfer is what the IPPS addresses. Lastly, the idea that hospitals are reimbursed based on preadmission services overlooks that the payment is tied to the care received during hospitalization, not merely the services provided before admission.