- 14 - in the event that petitioner achieved a budget surplus, the physicians may have qualified to receive additional payments. However, in the event petitioner experienced a budget deficit, the physicians did not incur any additional financial obligation. Approximately 21 percent of petitioner’s expenditures for physician services was attributable to services provided by physicians employed by Health Services. The remaining 79 percent of such expenditures was attributable to services provided by members of independent physician medical groups. Petitioner fulfilled its obligation to arrange for its enrollees to receive hospital services by contracting with a panel of hospitals including Health Services hospitals and a limited number of independent hospitals. Petitioner generally compensated its contractor hospitals pursuant to a modified diagnosis related group (DRG) payment system under which an enrollee admitted to a hospital on either an inpatient or outpatient basis would be assigned a DRG and the hospital would be paid a fixed fee consistent with the DRG schedule. Approximately 90 percent of petitioner’s expenditures for inpatient hospital services, and approximately 91 percent of petitioner’s expenditures for outpatient hospital services, were attributable to services provided by Health Services’ hospitals. A substantial portion of petitioner’s enrollees’ admissions to independent hospitals were for admissions to either UniversityPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011