Does How Much and How You Pay Matter? Evidence from the Inpatient Rehabilitation Facility Prospective Payment System / Neeraj Sood, Melinda Beeuwkes Buntin, Jose J. Escarce.

Format:

Book

Author/Creator:

Sood, Neeraj.

Contributor:

National Bureau of Economic Research.

Buntin, Melinda Beeuwkes.

Escarce, Jose J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w12556.

NBER working paper series no. w12556

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2006.

Summary:

We use the implementation of a new prospective payment system (PPS) for inpatient rehabilitation facilities (IRFs) to investigate the effect of changes in marginal and average reimbursement on costs. The results show that the IRF PPS led to a significant decline in costs and length of stay. Changes in marginal reimbursement associated with the move from a cost based system to a PPS led to a 7 to 11% reduction in costs. The elasticity of costs with respect average reimbursement ranged from 0.26 to 0.34. Finally, the IRF PPS had little or no impact on costs in other sites of care, mortality, or the rate of return to community residence.

Notes:

Print version record

October 2006.