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Medicare's New Hospital Payment System: Is It Working?
Paperback
Business GeneralGeneral Political ScienceSocial Movements
ISBN13: 9780815776239
Publisher: Brookings Institution Press
Published: Sep 1 1989
Pages: 130
Weight: 0.41
Height: 0.36 Width: 6.07 Depth: 9.28
Language: English
In 1983 Congress changed the way Medicare pays for hospital care. Under the new prospective payment system, hospitals are paid a fixed rate, set in advance, to cover a patient's stay. If costs are less than the fixed rates, the hospital keeps the profit; if the costs are more, it absorbs the loss. From the beginning, prospective payment was recognized as a revolutionary change in Medicare. Congress wanted a system that would make federal expenditures more predictable and controllable, and expected hospitals to respond by becoming more efficient. Some observers have hailed it as a successful way to control the spiraling costs of the Medicare program. Others have criticized it as arbitrary and a threat to the health of the elderly.
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