Physical rehabilitation following medicare prospective payment for skilled nursing facilities.
OBJECTIVE
To examine the effect of the Medicare prospective payment system (PPS) for skilled nursing facilities (SNF) on the delivery of rehabilitation therapy to residents.


METHODS
Resident-level data are based on the Resident Assessment Instrument Minimum Data Set for nursing facilities. All elderly residents admitted to SNFs in Michigan and Ohio in 1998 and 1999 form the study population (n=99,952).


METHODS
A differences-in-differences identification strategy is used to compare rehabilitation therapy for SNF residents before and after a change in Medicare SNF payment. Logistic and linear regression analyses are used to examine the effect of PPS on receipt of physical, occupational, or speech therapy and total therapy time.


METHODS
Data for the present study were extracted from the University of Michigan Assessment Archive Project (UMAAP). One assessment was obtained for each resident admitted to nursing facilities during the study period.


RESULTS
The introduction of PPS for all U.S. Medicare residents in July of 1998 was associated with specific targeting of rehabilitation treatment time to the most profitable levels of therapy. The PPS was also associated with increased likelihood of therapy but less rehabilitation therapy time for Medicare residents.


CONCLUSIONS
The present results indicate that rehabilitation therapy is sensitive to the specific payment incentives associated with PPS.
Wodchis
Walter P
WP
Toronto Rehabilitation Institute, Queen Elizabeth Centre, 130 Dunn Ave., Toronto, Ontario, M6K 2R7.
D000368:Aged; D000369:Aged, 80 and over; D003953:Diagnosis-Related Groups; D005260:Female; D006297:Health Services Accessibility; D006801:Humans; D016014:Linear Models; D016015:Logistic Models; D008297:Male; D006278:Medicare; D017059:Models, Econometric; D015999:Multivariate Analysis; D011445:Prospective Payment System; D012046:Rehabilitation / Q000191:economics*; D012866:Skilled Nursing Facilities / Q000191:economics*; D014481:United States