Certified Rehabilitation Registered Nurse (CRRN) Practice Exam

What does cost reimbursement refer to in healthcare?

1. The system of billing patients for services rendered

2. The revenue based on the organization receiving payment for costs incurred

3. The amount forgiven in patient debts

4. The process of charging patients for supplies used

The correct answer is: The revenue based on the organization receiving payment for costs incurred

Cost reimbursement in healthcare refers to the arrangement where a healthcare provider is compensated for the actual costs incurred in delivering services to patients. This model allows healthcare organizations to receive payment based on the expenses they have incurred, rather than a set fee or capitated amount. This system is particularly relevant for services provided under certain government programs, such as Medicare and Medicaid, where providers can submit claims for the costs associated with patient care, including direct costs like labor and materials. It ensures that the healthcare provider can cover operational and service costs while maintaining the viability of their services. This contrasts with the other options, which do not accurately capture the essence of cost reimbursement. Billing patients for services rendered typically involves fixed charges or co-pays, rather than an actual reimbursement for costs incurred. Forgiven patient debts relate more to financial assistance programs, and charging patients for supplies specifically addresses retail aspects rather than a broader reimbursement strategy.