Under ABF the services that patients receive in hospitals for a particular
illness are classified into clinical groups that use similar levels of hospital
resources. Hospitals receive a fixed amount for treating patients in these
groups. The money follows the patient to the facility that provides the service.
Thus, hospitals do not receive an annual budget from the government based on
what was spent last year, but instead receive money based on the numbers of
patients seen with a given medical problem and diagnosis-related group
classification.
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