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A qualitative assessment of the medicare prospective payment system

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  • Broyles, Robert W.
  • Rosko, Michael D.

Abstract

This paper employs commonly accepted criteria to evaluate the potential outcomes of the Medicare pricing mechanism. The analysis suggests that the recent revisions in the Medicare payment system have less potential to contain increases in total hospital costs than those embodied in all-payer systems. In addition, this paper also suggests that the pricing mechanism will jeopardize the financial viability of many hospitals while exacerbating inequities that emanate from differential pricing policies. Finally, when viewed from the perspective of insured beneficiaries, it is reasonable to expect that the payment mechanism will reduce not only access to inpatient care but also the use of service once admitted.

Suggested Citation

  • Broyles, Robert W. & Rosko, Michael D., 1985. "A qualitative assessment of the medicare prospective payment system," Social Science & Medicine, Elsevier, vol. 20(11), pages 1185-1190, January.
    • Handle: RePEc:eee:socmed:v:20:y:1985:i:11:p:1185-1190
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    Cited by:

    1. Moszoro Marian W., 2016. "Coasean Quality of Regulated Goods," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(4), pages 1-13, October.
    2. Tangerås, Thomas P., 2002. "Regulation of Cost and Quality under Yardstick Competition," Working Paper Series 573, Research Institute of Industrial Economics.
    3. Sylvia Brandt & Peter Marie, 2011. "Racial Disparities in Hospital Length of Stay for Asthma: Implications for Economic Policies," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 152-169, March.
    4. Socha, Karolina, 2014. "Mixed reimbursement of hospitals: Securing high activity and global expenditures control?," DaCHE discussion papers 2014:3, University of Southern Denmark, Dache - Danish Centre for Health Economics.
    5. Moszoro, Marian, 2010. "Partnerstwo publiczno-prywatne w sferze użyteczności publicznej [Public-Private Partnerships in the Utilities Sector]," MPRA Paper 101917, University Library of Munich, Germany.

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