What is "per diem" coding?

"Per diem" coding refers to a method of billing where healthcare providers charge a daily rate for their services. This approach is commonly used in hospitals or facilities where patients require ongoing care, such as inpatient services. Instead of billing for each individual service or procedure, the facility charges a set daily fee that covers a variety of services provided during that day. This can simplify the billing process for both providers and payers, as it provides a straightforward and predictable cost structure based on the length of stay rather than the complexity of care.

The other options describe different billing practices. A fixed fee for all services rendered pertains to bundled payments, which are not charged on a daily basis but rather for an entire episode of care. A percentage of total treatment costs describes a percentage-based reimbursement model rather than a daily rate, and a coding system focused on preventive services indicates a specialized coding approach that does not relate to the daily billing structure inherent in per diem coding.