A longitudinal comparison of charge-based weights with cost-based weights.
Carter, Grace M
Date of Pub
Farley, Donna O
The diagnosis-related group weights that determine prices for Medicare hospital stays are recalibrated annually using charge
data. Using data from fiscal years 1985 through 1987, the authors show that differences between these charge-based weights
and cost-based weights are increasing only slightly. Charge-based weights are available in a more timely manner and, based
on temporal changes in the weights, we show that this is an important consideration. Charge-based weights provide higher payments
than cost-based weights to hospitals with higher case-mix indexes, but have little effect on hospitals with low cost-to-charge
ratios, high capital costs, or high teaching costs.
Comparative Study : Costs and Cost Analysis/statistics & numerical data : Diagnosis-Related Groups/classification/economics
: Economics, Hospital/statistics & numerical data : Fees and Charges/statistics & numerical data : Health Resources/classification/economics
: Health Services Research : Longitudinal Studies : Medicare/economics : Prospective Payment System/economics : Reference
Values : Support, Non-U.S. Gov't : Support, U.S. Gov't, Non-P.H.S. : United States