Certified Nurse Manager and Leader (CNML) Practice Test

What does the term 'per diem rate' refer to in healthcare?

1. Daily charges for hospital services regardless of actual treatments

2. Hourly wages for nursing staff

3. Daily patient care expenses divided by total patients

4. Flat fees charged for specific medical procedures

The correct answer is: Daily charges for hospital services regardless of actual treatments

The term 'per diem rate' in healthcare refers to daily charges for hospital services regardless of actual treatments provided to the patient. It is a billing mechanism used by healthcare facilities to simplify charging for services, making it easier to manage costs on a daily basis. By applying a per diem rate, hospitals can streamline their billing process, as patients are charged a set daily fee which may encompass various services rendered during that day, rather than providing itemized costs for each individual service. This method is particularly common in areas such as rehabilitation services, long-term care, and certain types of inpatient stays, where the daily services can be bundled into one comprehensive fee. The per diem approach helps patients and insurers better understand the costs upfront and allows facilities to maintain stable revenue expectations.