What does the term "per diem" refer to in healthcare?

The term "per diem" in healthcare refers to a daily payment methodology. This concept is primarily used in the context of reimbursement for services provided to patients, particularly in inpatient settings. Under the per diem payment system, healthcare providers receive a fixed amount of payment for each day a patient is hospitalized, regardless of the services rendered during that day. This approach simplifies billing and can help standardize payments based on daily care requirements.

The per diem model contrasts with other payment systems, such as fee-for-service, where providers are paid based on the individual services or procedures performed. By understanding this payment methodology, healthcare organizations can better manage their revenues and resources while also ensuring that patient care continues to be the focus. In this case, "per diem" is specifically tied to the daily rate of payment, making it crucial for financial management in healthcare settings.