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The impact of prospectively set hospital budgets on psychiatric admissions

Author

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  • Frank, Richard G.
  • Jackson, Catherine A.

Abstract

This article examines the impact of prospectively set hospital budgets on rates of admission of psychiatric patients in New York state, U.S.A. The analysis takes advantage of a natural experiment which took place in the early 1980s, whereby a geographic region adopted a prospective hospital budget reimbursement scheme that differed from the prospective per diem reimbursement scheme used in the rest of the state. The results indicate a strong decrease in psychiatric admissions attributable to the experimental payment method.

Suggested Citation

  • Frank, Richard G. & Jackson, Catherine A., 1989. "The impact of prospectively set hospital budgets on psychiatric admissions," Social Science & Medicine, Elsevier, vol. 28(8), pages 861-867, January.
    • Handle: RePEc:eee:socmed:v:28:y:1989:i:8:p:861-867
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