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Title:New Evidence on Medicare?s Prospective Payment System: A Survival Analysis based on the NHANES I Epidemiologic Followup Study PDF Logo
Authors:Qian, Xufeng
Russell, Louise B.
Valiyeva, Elmira
Miller, Jane E.
Issue Date:2005
Series/Report no.:Working papers / Rutgers University, Department of Economics 2005,06
Abstract:Medicare?s prospective payment system (PPS), introduced in 1983, pays hospitals a fixed price for each stay rather than reimbursing costs. Previous studies evaluated its first few years using endogenous measures to control for heterogeneity in patients? health. We examine PPS over a full decade using competing risks Cox survival models and a national longitudinal survey with independent information on patients? health. New findings include: risk of death in hospital increased; risk of discharge to a nursing home continued to increase as PPS matured; and risk of nursing home admission from the community following hospital discharge rose. HMOs may have contributed to these outcomes.
JEL:C41
I18
Document Type:Working Paper
Appears in Collections:Working Papers, Department of Economics, Rutgers University

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