TY - JOUR
T1 - Hospital cost incentives in a fragmented health care system
AU - Manheim, Larry M.
AU - Feinglass, Joe
PY - 1994/1/1
Y1 - 1994/1/1
N2 - During the mid-1980s, hospital prospective payment regulation was associated with major changes in medical practice, resulting in initially significant reductions in the rate of growth of inpatient costs. More recently, the rate of growth of hospital costs has returned to historic levels, yet most hospitals have been reluctant to intensify their economic monitoring of physicians. Using data from a large teaching hospital in the Midwest, this article presents a model of marginal profitability by payor and by relative physician costliness. The results illustrate the mixed incentives for hospitals to reduce costly medical practice variations.
AB - During the mid-1980s, hospital prospective payment regulation was associated with major changes in medical practice, resulting in initially significant reductions in the rate of growth of inpatient costs. More recently, the rate of growth of hospital costs has returned to historic levels, yet most hospitals have been reluctant to intensify their economic monitoring of physicians. Using data from a large teaching hospital in the Midwest, this article presents a model of marginal profitability by payor and by relative physician costliness. The results illustrate the mixed incentives for hospitals to reduce costly medical practice variations.
UR - http://www.scopus.com/inward/record.url?scp=0028675135&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0028675135&partnerID=8YFLogxK
U2 - 10.1097/00004010-199424000-00008
DO - 10.1097/00004010-199424000-00008
M3 - Article
C2 - 8206762
AN - SCOPUS:0028675135
VL - 19
SP - 56
EP - 63
JO - Health Care Management Review
JF - Health Care Management Review
SN - 0361-6274
IS - 1
ER -