IPPS or the Inpatient Prospective Payment System refers to a payment system that includes cases from diagnosis-related groups such as acute inpatients. This system relies on resources used when treating Medicare recipients in these groups. Each diagnosis-related group (DRG) includes a payment weight. IPPS plays a vital role when it comes to deciding the overall hospital costs of all devices used to treat the patient during a specific hospital stay. In contrast, the OPPS (outpatient prospective payment system) is controlled for different service groups such as APCs (outpatient payment classifications). Outpatient services in the different APCs are the same in terms of resources required and clinical aspects. The APC payment rate for each group is adjusted to account for geographic differences and is applied to all services in this group. Healthcare institutions adopt a fixed amount for all outpatient services based on outpatient service classifications. Marcinko (2006) notes that Medicare uses it to reimburse health care providers for goods and services that are not part of future payment systems. An MPFS (Medicare Physician Fee Schedule) determines the payment rate for medical therapy and services based on conversion factors, relative value units, and index costs. Finally, DMEPOS is associated with reimbursement rates for supplier items that ensure patients are provided high-quality items. It includes various payment regulations that govern the provision of DMEPOS items to Medicare beneficiaries. It makes use of suppliers with the mandate for supplier authorization...... middle of paper ...... so that they can get the services easily and at lower costs. Additionally, these hospitals have the potential to effectively manage their cash flow. A fixed and adequate payment system for workers of small health centers can motivate them to avail quality services for medical beneficiaries. Small hospitals may receive a bonus payment if they provide care in non-professional healthcare areas. Therefore, the small hospital can indicate its payment method appropriately. Conversely, there may be a possibility of risk when it comes to accessing low amounts due to the nature of patients' disease, the involvement of high treatment costs and many other factors. In case the overall healthcare costs are higher than previously expected, the hospital and doctor will receive less profit. This can have a negative impact on the hospital.