title: Medicare expenditures and utilization under State hospital rate setting.
abstract: In this study we analyzed the National Hospital Rate-Setting Study findings concerning the effects of State prospective reimbursement (PR) programs on Medicare expenditures and utilization; we used Medicare beneficiary-based data complied from a sample of approximately 1,300 counties in States with and without rate-setting programs for the 5-year period 1974-78. The statistical evidence suggests that stringent PR programs have not resulted in hospitals using Medicare to cross-subsidize losses elsewhere. In addition, it appears that Medicare has been a passive recipient of the same kinds of regulatory benefits accruing to PR-covered patients (i.e., costs and intensity of care have been constrained).
mesh_terms: D004469:Economics, Hospital / Q000639:trends*; D005249:Fees and Charges; D006076:Government; D006278:Medicare / Q000191:economics*; D008962:Models, Theoretical; D011445:Prospective Payment System / Q000191:economics*; D012051:Reimbursement Mechanisms / Q000191:economics*; D013219:State Government; D013223:Statistics as Topic; D014481:United States