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Payment models overview

A payment model describes a financial arrangement for one party to pay another party. In RehabAlpha, payment models describe how therapy services are reimbursed.

Payor payment model vs contract payment model

RehabAlpha uses two kinds of payment models:

  • A payor payment model describes the manner in which a payor reimburses a billing provider (facility) for therapy services.

  • A contract payment model describes the manner in which a facility reimburses a therapy company for therapy services.

Outpatient therapy

If your organization provides only outpatient therapy, you only need to use payor payment models. These models answer the question, “How much does the payor owe the therapy company for services?”

Contract therapy

If your organization does contract therapy, there are two questions you might want to answer:

  1. “How much does the payor owe the billing provider (facility) for services?”
  2. "How much does the facility owe the therapy company for services?"

Payor payment models answer the first question. Contract payment models answer the second.

Payor payment models

Choose a payor payment model when you create a payor. The selected model determines the payment details available when you add that payor's reimbursement arrangements.

RehabAlpha supports these payor payment models:

Contract payment models

Choose a contract payment model when you add a payment term to a facility contract. Contract payment models determine how the facility reimburses the therapy company for services covered by that contract.