Impacts of hospital budget limits in Rochester, New York.
Date of Pub
Wong, Herbert S
During 1980-87, eight hospitals in the Rochester, New York area participated in an experimental program to limit total revenue.
This article analyzes: increase of costs for Rochester hospitals; trends for inputs and compensation; and cash flow margins.
Real expense per case grew annually by about 3 percent less in Rochester. However, after 1984, Medicare prospective payment
had an effect of similar size outside Rochester. Some capital inputs to hospital care were restrained, as were wages and particularly
benefits. The program did not generally raise or stabilize hospital revenue margins, while the ratio of cash flow to debt
trended down. Financial stringency of this program relative to alternatives may have contributed to its end.
Budgets : Cost Control : Cost of Illness : Diagnosis-Related Groups : Financial Management, Hospital/statistics & numerical
data/trends : Health Services Research/methods : Hospital Costs/statistics & numerical data/trends : Income/statistics & numerical
data : Models, Economic : Multivariate Analysis : New York : Pilot Projects : Regional Health Planning/economics : Salaries
and Fringe Benefits/statistics & numerical data