Medicare Prospective Payment System

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Medicare Prospective Payment System

Medicare Prospective Payment System

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This article the author clearly defines payback period as a simple measure of the time spent in recovering money spent on a healthcare investment. According to the author, the payback period should be calculated by the use of a required return that is not less than zero that is i>0. The article is useful since it clearly indicates that after one year the cash flows will recover the investment with a return of i%.