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The impact of DRGs on community-based service providers: Implications for the elderly

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  • Wood, J.B.
  • Estes, C.L.

Abstract

We investigated changes in community-based agencies following the implementation of the Medicare prospective payment system for hospitals utilizing DRGs (diagnosis-related groups). Data were collected in 1986 and 1987 from 771 community service providers. There were five major findings: 1) hospital discharge planners, nursing homes, and home health agencies experienced DRG effects before other types of community providers studies; 2) the 'reach' of DRG impact is widespread; 3) providers report a change in clientele toward a heavier-care client; 4) the impact of DRGs affects the types of services agencies provide; and 5) community providers have experienced a decrease in their ability to refer their clients both to hospitals and to each other.

Suggested Citation

  • Wood, J.B. & Estes, C.L., 1990. "The impact of DRGs on community-based service providers: Implications for the elderly," American Journal of Public Health, American Public Health Association, vol. 80(7), pages 840-843.
    • Handle: RePEc:aph:ajpbhl:1990:80:7:840-843_2
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