Does one national prospective payment system market basket make sense?
Cromwell, Jerry L
Date of Pub
For the first 4 years of Medicare's prospective payment system (PPS), one national market basket of cost weights and price
proxies has been used to update payment rates. Previous evidence for a single rate is reviewed, and more recent data are presented
that show definite regional differences in input price inflation, resulting in systematic gains or losses for some regions.
However, as long as the Health Care Financing Administration continues to periodically update its hospital wage index, the
net impact on hospitals is minor. Nevertheless, large differences in PPS-excluded hospital cost shares indicate the need for
two sets of cost weights.
American Hospital Association : Catchment Area (Health)/economics : Comparative Study : Costs and Cost Analysis/statistics
& numerical data : Economics, Hospital/statistics & numerical data : Medicare/statistics & numerical data : Models, Statistical
: Prospective Payment System/methods : Salaries and Fringe Benefits/statistics & numerical data : Support, Non-U.S. Gov't
: United States : United States Health Care Financing Administration