Impact Analysis of the TEFRA System for Reimbursement of PPS-Excluded Hospitals

摘要

The report analyzes the impact of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) on Prospective Payment System-Excluded Hospitals using data from Medicare Cost Reports for fiscal years 1986 and 1987. It describes the financial incentives under TEFRA, compares Medicare payments and actual facility average costs, and concludes: TEFRA will impose larger and larger losses unless these facilities reduce their rate of cost inflation.