Ambulatory Care Centers: Their Role In Health Care

13 Pages 3237 Words

such as outpatient surgical centers, ambulatory care centers, or freestanding outpatient centers. The aforementioned conclusion is validated by Sarah Q. Duffy of Public Health Report: Duffy quotes M. W. Wolcott’s assertion that ‘many interventions that could have been performed for years safely and effectively on an outpatient basis remained inpatient procedures’ (1995). However, in 1983 this practice came to a screeching halt with the development and implementation of Diagnostic Related Groups or DRGs. According to Robert Gray, Ed.D and John Johnson J.D. a “DRG is a group of similar diagnoses, for which Medicare has established a fixed payment the provider will be paid for each DRG” (1997). This new system of fixed-rate reimbursement forced hospital to develop more cost effect means delivering the same healthcare units. As a result of its need to remain profitable and competitive hospital as well as the rest of the health care industry gave birth to and embraced the ambulatory care concept. The health care industry evolved to ...