Impact of State hospital rate setting on capital formation.
Cromwell, Jerry L
Date of Pub
For this article, a new national data base of Medicare's cost reports on more than 2,000 hospitals is used to measure the
impact of State prospective rate setting on capital formation. Several investment measures are analyzed, both in nominal and
real terms, using a combination of descriptive and multivariate techniques. Results indicate that, over the last decade, State
hospital rate-setting programs have had little demonstrable effect on capital formation and they have not caused any significant
aging of plant assets. Programs in both New York and Massachusetts were found to be associated with a slowing in the rate
of bed growth, however, resulting in significant long-term cost savings.
Capital Financing : Financial Management : Prospective Payment System : Data Collection : Hospitals, Community/economics :
Investments/economics : Medicare/economics : Rate Setting and Review/legislation & jurisprudence : State Government : Support,
U.S. Gov't, Non-P.H.S. : United States