Explain the importance of proper cost allocation in healthcare organizations.

• Explain cost classification

• Explain the importance of proper cost allocation in healthcare organizations

• Describe the difference between fee-for service and capitation reimbursement

• Explain the impact of revenue and cost structure on risk in healthcare organizations
Course outcome assessed/addressed in this Assignment:
HS440-2: Describe international standard diagnosis classification use in the US health care reimbursement and billing system.
Utilizing your textbook and the Kaplan Resource Library: • Describe the importance of proper coding in healthcare to ensure prompt reimbursement by answering the following questions:

1. Describe the role of finance in the healthcare system.

2. Describe the Diagnosis codes and how they are used, impacting reimbursement.

3. Describe the features of third-party payers .

4. Explain the reimbursement methods used and the effects of coding on reimbursement.

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