Trends in hospital labor and total factor productivity, 1981-86.
Cromwell, Jerry L
Date of Pub
Pope, Gregory C
The per-case payment rates of Medicare's prospective payment system are annually updated. As one element of the update factor,
Congress required consideration of changes in hospital productivity. In this article, calculations of annual changes in labor
and total factor productivity during 1981-86 of hospitals eligible for prospective payment are presented using several output
and input variants. Generally, productivity has declined since 1980, although the rates of decline have slowed since prospective
payment implementation. According to the series of analyses most relevant for policy, significant hospital productivity gains
occurred during 1983-86. This may justify a lower update factor.
Efficiency : Models, Statistical : Costs and Cost Analysis/trends : Economics, Hospital/statistics & numerical data : Fees
and Charges/trends : Medicare/economics : Personnel Staffing and Scheduling/trends : Prospective Payment System/methods :
Support, U.S. Gov't, Non-P.H.S. : United States