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Are reporting errors under PPS random or systematic?

Authors
  • Soderstrom, N S
Type
Published Article
Journal
Inquiry : a journal of medical care organization, provision and financing
Publication Date
Jan 01, 1990
Volume
27
Issue
3
Pages
234–241
Identifiers
PMID: 2145224
Source
Medline
License
Unknown

Abstract

This study examines how hospitals respond to the reimbursement and monitoring methods used under the Medicare Prospective Payment System. Under the reimbursement system, hospitals can follow several strategies to increase profit. The strategies examined here are: 1) providing inaccurate reports of diagnoses, and 2) unnecessarily admitting patients. Empirical evidence supports the contention that hospitals follow these strategies and that the extent to which they do differs across diagnoses. The results have implications for the form of monitoring done under the Prospective Payment System.

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