Certified Coding Associate (CCA) Practice Exam

The primary purpose of developing prospective payment systems (PPS) by the federal government was to manage Medicare and Medicaid costs. This system was introduced in an effort to control rising healthcare expenditures while ensuring that hospitals and healthcare providers are compensated in a predictable manner. With PPS, payments are predetermined based on the classification of the patient's diagnosis and the treatment received, rather than being based on the actual cost of services rendered. This encourages healthcare providers to operate more efficiently and helps to mitigate excessive spending in the Medicare and Medicaid programs.

In contrast, while enhancing patient care quality may indirectly result from more efficient allocation of resources, it is not the primary focus of PPS. Similarly, facilitating emergency medical services and increasing the healthcare workforce are important goals but do not align closely with the core intent of creating a financial structure to manage costs effectively. Thus, the focus of PPS is specifically geared toward addressing financial sustainability within government-sponsored healthcare programs.