Capital payment under PPS: can hospitals still bloom?
Capital costs are presently treated as pass-through payments under PPS. However, this situation is only temporary and by Oct. 1, 1986, HCFA must endorse a proposal to incorporate capital costs into the framework of PPS. Several methods have been suggested--a capital add-on approach, a modified pass-through approach, and variations of these two approaches. Looking at a case study hospital--a large urban teaching center--results show that the modified pass-through approach is the most advantageous, providing the largest cash flow.
D002201:Capital Expenditures; D003365:Costs and Cost Analysis; D004467:Economics; D005069:Evaluation Studies as Topic; D005376:Financial Management; D005377:Financial Management, Hospital; D006278:Medicare / Q000191:economics*; D011445:Prospective Payment System / Q000191:economics*; D012051:Reimbursement Mechanisms / Q000191:economics*; D014481:United States