What does "global payment" refer to in healthcare reimbursement?

Global payment in healthcare reimbursement refers to a bundled payment that encompasses all services related to a patient's condition or episode of care. This approach streamlines the reimbursement process by consolidating multiple payments into a single payment structure. It allows providers to receive a predetermined amount for the entire course of treatment for a specific condition, rather than billing separately for each individual treatment or service rendered. This can encourage efficiency, as healthcare providers may work to ensure better outcomes within the agreed-upon budget, focusing on the overall care of the patient rather than on quantity of services provided.

This model contrasts with other payment structures, such as those that involve separate payments for each treatment or service, which could lead to fragmentation of care. The global payment method emphasizes the importance of coordinated care, potentially improving patient outcomes while managing costs effectively.