Medicare Adopts DRG Prospective Payment System Creating Hospital Profit Incentives for Reduced Care
The Social Security Amendments of 1983 establish Medicare’s Prospective Payment System (PPS), fundamentally transforming hospital economics by replacing cost-based reimbursement with fixed payments based on Diagnosis Related Groups (DRGs). Under the new system, hospitals receive a …
Ronald Reagan
Richard Schweiker
American Hospital Association
Federation of American Hospitals
healthcare
medicare
regulatory-capture
hospital-industry
cost-shifting
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