Xufeng Qian () (Moody's) Louise Russell () (Rutgers/Economics and Institute for Health) Elmira Valiyeva () (Rutgers) Jane Miller () (Rutgers/Bloustein School and Institute for Health)
Abstract
Medicare’s prospective payment system (PPS), introduced in 1983, pays hospitals a fixed price for each stay rather than reimbursing costs. Previous studies evaluated its first few years using endogenous measures to control for heterogeneity in patients’ health. We examine PPS over a full decade using competing risks Cox survival models and a national longitudinal survey with independent information on patients’ health. New findings include: risk of death in hospital increased; risk of discharge to a nursing home continued to increase as PPS matured; and risk of nursing home admission from the community following hospital discharge rose. HMOs may have contributed to these outcomes.
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Publisher Info
Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number
200506.
Find related papers by JEL classification: C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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