Impacts of PPS on Medicare Part B expenditures and utilization for hospital episodes of care.
The universe of Medicare claims for four states from 1983 through 1986 is used to examine the impacts Medicare's prospective payment system (PPS) makes on hospital lengths of stay and on Part B expenditures for physician services associated with hospital stays. The descriptive results show that lengths of stay have fallen, while both inpatient and outpatient expenditures have risen. The regression results, on the other hand, show that PPS has reduced both lengths of stay and expenditures, and that other factors, such as increases in physician fees and patients' severity of illness, account for expenditure increases.
Menke
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Congressional Budget Office, U.S. Congress, Washington, DC 20515.
D003953:Diagnosis-Related Groups / Q000191:economics; D005260:Female; D005102:Health Expenditures / Q000706:statistics & numerical data*; D006761:Hospitals / Q000706:statistics & numerical data*; D006801:Humans; D007357:Insurance, Physician Services / Q000706:statistics & numerical data; D007902:Length of Stay / Q000706:statistics & numerical data; D008297:Male; D006278:Medicare / Q000706:statistics & numerical data*; D015442:Medicare Assignment / Q000706:statistics & numerical data*; D015999:Multivariate Analysis; D011445:Prospective Payment System / Q000191:economics*; D012044:Regression Analysis; D014481:United States