Examining the effect of PPS on cost accounting systems.
The cost of treating patients varies widely, but the prospective payment system (PPS) pays hospitals the same amount for every patient at a standard diagnosis-related group (DRG) rate. When PPS was implemented in October 1984, many predicted that implementation of PPS would cause hospitals to make significant changes to their traditional cost-accounting systems. This article examines the accuracy of those predictions.
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Middle Tennessee State University, Murfreesboro.
D000066:Accounting; D003361:Cost Allocation / Q000379:methods*; D003625:Data Collection; D005069:Evaluation Studies as Topic; D005377:Financial Management, Hospital / Q000379:methods / Q000639:trends*; D011445:Prospective Payment System; D014481:United States