What is a consequence of the prospective payment system in health care?

The prospective payment system (PPS) in health care is designed to control costs by establishing payment amounts for specific treatments and services in advance, based on the expected resource utilization for a given diagnosis. One significant consequence of this system is the increased focus on outpatient care.

With the PPS in place, healthcare facilities are incentivized to manage patient care more efficiently and avoid extended hospital stays. Since they receive a fixed payment for a patient's treatment, there is a natural tendency to discharge patients as soon as it is medically appropriate. This leads to a greater emphasis on outpatient services, where patients receive care without being admitted to the hospital. As medical practices adapt to these payment structures, we see a growth in outpatient surgeries, management, and follow-up care, allowing patients to return to their normal lives more quickly while still receiving the necessary medical attention.

Thus, the impact of the prospective payment system has shifted the focus of healthcare delivery towards outpatient settings to enhance efficiency and cost-effectiveness, making this answer accurate.