What is a key advantage of per-procedure payment systems for health plans?

A key advantage of per-procedure payment systems is that they simplify administration for health plans. This payment model typically involves a set fee for each procedure performed, which streamlines the billing and reimbursement process. Health plans can more readily predict costs and manage budgets since each procedure has an established payment rate. This approach reduces the complexity associated with varying payments based on individual patient circumstances or the length of care provided, leading to more efficient administrative operations.

In contrast, other options do not align with the primary functions of per-procedure payment systems. For instance, while ensuring cost-effectiveness might seem important, this model primarily focuses on the efficiency of the payment process rather than inherently providing cost savings. Additionally, promoting longer hospital stays or encouraging fewer procedures per patient runs counter to the design of per-procedure payments, which generally incentivize efficiency and timely interventions rather than extended care or reduced procedural volume.