What best defines per diem payment?

• A. Paid per visit/procedure
• B. Fixed salary per month
• C. Paid per day (hospital)
• D. Capitation

Answer: (C)

Per diem payment is a fixed amount paid for each day a patient is hospitalized. This means reimbursement accrues day by day with the length of stay, rather than being based on the number of visits or procedures, or on a monthly salary, or on a per-patient basis under capitation. So the daily hospital rate best defines per diem payment.