Question: How are hospitals reimbursed by Medicare according to diagnosis-related groups? Group of answer choices Hospitals are paid their costs for treating a Medicare patient with a particular diagnosis. Hospitals are paid a fixed price according to the Medicare patient's diagnosis. Hospitals are paid a fixed price that is the same for all their publicly and privately insured patients-on the basis of their diagnoses. Hospitals are paid their fixed costs, which are the same for all their publicly and privately insured patients, plus their variable costs for Medicare patients-on the basis of their diagnoses.