Cost-based reimbursement and prospective payment: reassessing the incentives.
Prospective payment is distinguished from the imposition of a regulatory ceiling on hospital costs. While a regulatory ceiling could potentially be effective in controlling expenditure growth, its success depends upon the political climate. Prospective payment, as a distinct financial policy, offers little cost-containment potential. It is appropriately evaluated in term of its effects on the distribution of risk between providers and third parties and on the trade-off between investment and current consumption.
D003363:Cost Control / Q000379:methods; D004180:Direct Service Costs; D004469:Economics, Hospital; D006278:Medicare / Q000331:legislation & jurisprudence; D011445:Prospective Payment System; D011907:Rate Setting and Review / Q000379:methods*; D012051:Reimbursement Mechanisms; D012052:Reimbursement, Incentive; D012306:Risk; D014481:United States