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Effects of the Medicare prospective payment system on hospital cost containment: an early appraisal.

Publication ,  Journal Article
Sloan, FA; Morrisey, MA; Valvona, J
Published in: The Milbank quarterly
January 1988

In 1983 federal efforts to contain hospital costs were coalesced under the Medicare prospective payment system (PPS)--a "self-interest" approach to administered prices. Diagnosis-related groups (DRGs) and the tougher peer review organizations (PROs) serve to define "products"; PPS sets the price on each. The effects of PPS go beyond Medicare; they have been system-wide. Differential impacts on hospital utilization, substitution of capital for labor, and quality are examined through a variety of data sources and descriptive as well as regression analyses. The greatest cost savings are attributed to a reduction in hospital admissions per capita.

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Published In

The Milbank quarterly

DOI

EISSN

1468-0009

ISSN

0887-378X

Publication Date

January 1988

Volume

66

Issue

2

Start / End Page

191 / 220

Related Subject Headings

  • United States
  • Regression Analysis
  • Quality of Health Care
  • Prospective Payment System
  • Program Evaluation
  • Medicare
  • Hospitals, Voluntary
  • Health Policy & Services
  • Economics, Hospital
  • Cost Control
 

Citation

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Sloan, F. A., Morrisey, M. A., & Valvona, J. (1988). Effects of the Medicare prospective payment system on hospital cost containment: an early appraisal. The Milbank Quarterly, 66(2), 191–220. https://doi.org/10.2307/3350030
Sloan, F. A., M. A. Morrisey, and J. Valvona. “Effects of the Medicare prospective payment system on hospital cost containment: an early appraisal.The Milbank Quarterly 66, no. 2 (January 1988): 191–220. https://doi.org/10.2307/3350030.
Sloan FA, Morrisey MA, Valvona J. Effects of the Medicare prospective payment system on hospital cost containment: an early appraisal. The Milbank quarterly. 1988 Jan;66(2):191–220.
Sloan, F. A., et al. “Effects of the Medicare prospective payment system on hospital cost containment: an early appraisal.The Milbank Quarterly, vol. 66, no. 2, Jan. 1988, pp. 191–220. Epmc, doi:10.2307/3350030.
Sloan FA, Morrisey MA, Valvona J. Effects of the Medicare prospective payment system on hospital cost containment: an early appraisal. The Milbank quarterly. 1988 Jan;66(2):191–220.
Journal cover image

Published In

The Milbank quarterly

DOI

EISSN

1468-0009

ISSN

0887-378X

Publication Date

January 1988

Volume

66

Issue

2

Start / End Page

191 / 220

Related Subject Headings

  • United States
  • Regression Analysis
  • Quality of Health Care
  • Prospective Payment System
  • Program Evaluation
  • Medicare
  • Hospitals, Voluntary
  • Health Policy & Services
  • Economics, Hospital
  • Cost Control