6 - Policy Issues Related to Hospitals(1)

6 - Policy Issues Related to Hospitals(1) - Policy Issues...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Policy Issues Related to Hospitals ECO 381 Prospective Payment System Hospital quality Does quality affect hospital choice? Luft et al. 1990 Goldman & Romley 2008 Prospective Payment System Government regulates hospital sector in a number of ways in a effort to contain costs (described in text, pp. 406-424) Starting in 1983, Medicare instituted the PPS as a method of containing costs in hospital sector Prior to PPS, a retrospective payment system was in place Hospitals just submitted their bills to Medicare under some guidelines and were reimbursed accordingly Hospitals could recover expenses, regardless of whether these expenses were high or low No incentive for hospitals to minimize costs PPS sets payment rates in period prior to which care is provided PPS sets a fixed reimbursement level per admission hospital has a fixed budget for care of each patient PPS provides economic incentives to provide cost- effective care Hospitals can earn profits and losses risk is shifted from Medicare to the hospital Rates based on 504 diagnosis related groups Diagnosis Related Groups (DRGs): A classification system that groups patients according to principal diagnosis, presence of a surgical procedure, age, presence or absence of significant comorbidities or complications...
View Full Document

Page1 / 18

6 - Policy Issues Related to Hospitals(1) - Policy Issues...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online