Hospital Ownership Models + Reimbursement & Coding Systems

How are public hospitals owned, funded, and who do they typically serve?

They are owned and funded by federal, state, or local governments and often serve vulnerable or specific populations (such as veterans or Native Americans)

What are voluntary (nonprofit) hospitals?

Privately owned, nonprofit hospitals supported by community organizations that reinvest their surplus into community and healthcare services

What is the goal of proprietary (for-profit) hospitals?

They are investor-owned by individuals, partnerships, or corporations with the primary goal of generating profit.

What is the ICD (International Classification of Diseases)?

A standardized system of diagnosis codes used to document why a patient was hospitalized and what diagnoses were treated.

What is a DRG (Diagnosis-Related Group)?

A payment classification system that groups hospitalized patients with similar diagnoses and expected resource use to determine how much the hospital will be paid