Hospital payroll costs, productivity, and employment under prospective reimbursement.
Date of Pub
This paper reports preliminary findings from the National Hospital Rate-Setting Study regarding the effects of State prospective
reimbursement (PR) programs on measures of payroll costs and employment in hospitals. PR effects were estimated through reduced-form
equations, using American Hospital Association Annual Survey data on over 2,700 hospitals from 1969 through 1978. These tests
suggest that hospitals responded to PR by lowering payroll expenditures. PR also seems to have been associated with reductions
in full-time equivalent staff per adjusted inpatient day. However, tests did not confirm the hypothesis that hospitals reduce
payroll per full-time equivalent staff as a result of PR.
Efficiency : Employment : Prospective Payment System : Reimbursement Mechanisms : Salaries and Fringe Benefits : Cost Control
: Models, Theoretical : Personnel Administration, Hospital/economics : Personnel Staffing and Scheduling : Support, U.S. Gov't,
P.H.S. : United States