What defines package pricing in health care?

Package pricing in health care is characterized by the inclusion of all related services for a specific treatment or procedure bundled into one price. This approach simplifies the billing process for both providers and patients, as it establishes a single payment that covers a comprehensive range of services associated with a particular episode of care, rather than itemizing each individual service.

The benefits of package pricing include enhanced transparency for patients regarding costs and the potential for more predictable revenue streams for health care providers. By consolidating services, it can also promote efficiency, as providers may be incentivized to streamline care processes.

In contrast, other options describe billing paradigms that do not align with the concept of package pricing. For instance, quarterly payments or annual billing do not necessarily consider the bundle of services provided together. Additionally, billing each service separately at a discounted rate directly opposes the package pricing model, as it involves itemization rather than a holistic price approach.