Effects of Prospective Reimbursement Programs on Hospital Revenue, Expense and Financial Status

摘要

The report discusses the effects of State prospective reimbursement (PR) programs on hospital revenue, expense, and financial status during the 1970's and early 1980's. Fifteen diverse State PR programs were evaluated. The major findings were: Ten of the 15 PR programs were effective in slowing the rate of increase in hospital revenue and expense (at least 1 or 2 percentage points per year). By 1981 effective PR programs had achieved a cumulative savings of $20 billion; by 1985, the savings had increased to at least $41 billion. In 5 of the 10 effective PR programs, hospitals achieved somewhat smaller financial surpluses or incurred somewhat larger losses.