PPS implementation effects on efficiency and cost control in the hospital industry.
Empirical evidence is provided concerning the impact of Public Law 98-21 on the operation of United States hospitals. The Box-Jenkins autoregressive integrated moving average model was used to analyze the impact of the law on efficiency and cost containment practices over a 24-year time period. Four cost containment variables and three efficiency variables were studied. Public Law 98-21 was the intervention and 1984 was the intervention year in which to evaluate impact assessment. Children's hospitals were used as a control group. Results of the research indicated no impact on cost containment practices and a significant impact on efficiency of hospital operations.
Putman
R L
RL
University of Tennessee, College of Business Administration, Martin 38238.
Rayburn
J M
JM
Rayburn
L G
LG
D003361:Cost Allocation / Q000706:statistics & numerical data; D003363:Cost Control / Q000331:legislation & jurisprudence / Q000706:statistics & numerical data*; D004467:Economics; D004526:Efficiency; D005069:Evaluation Studies as Topic; D005377:Financial Management, Hospital / Q000706:statistics & numerical data* / Q000639:trends; D006302:Health Services Research / Q000191:economics; D006764:Hospitals, Community / Q000191:economics; D007182:Income / Q000706:statistics & numerical data; D016344:Medicare Part A / Q000331:legislation & jurisprudence; D011445:Prospective Payment System / Q000331:legislation & jurisprudence*; D012107:Research Design; D013659:Tax Equity and Fiscal Responsibility Act; D014481:United States