Which of the following is an example of a prospective payment model?

Diagnosis Related Groups (DRG) is a prospective payment model used in healthcare that classifies hospital cases into groups that are expected to have similar hospital resource use, allowing for more predictable costs for care. Under this approach, a hospital is paid a fixed amount for a patient's treatment based on the DRG classification, regardless of the actual services provided. This means that providers are incentivized to manage resources efficiently and control costs, as they receive a predetermined payment for a specific diagnosis.

In contrast, the other options represent different payment models. A fee-for-service billing strategy pays providers for each individual service performed, which can lead to increased healthcare costs as there is a tendency to recommend more services rather than focusing on cost-effective care. Discounted fee-for-service models still operate on a fee-for-service basis, but the payments are reduced due to negotiated rates, maintaining the fundamental characteristics of the fee-for-service structure. Lastly, being paid hourly for services rendered is a model where providers are reimbursed based on the time spent delivering care, which does not align with the fixed-payment approach of DRGs and tends to encourage providing more services rather than managing overall costs.