Reimbursement of sole community hospitals under Medicare's prospective payment system. 1987

M P Freiman, and J Cromwell

Under the prospective payment system (PPS), designated sole community hospitals (SCH's), usually smaller than other rural hospitals but offering comparable services, have had higher average cost levels, in part because of underutilization of plant and equipment. This has resulted in negative operating margins on patient revenues, although local financial support and other revenue sources bring margins on total revenues into the positive range. The PPS legislation has also provided SCH's temporary protection from volume declines. SCH's are more likely than other rural hospitals to experience large volume swings, but only for declines greater than the threshold specified under PPS.

UI MeSH Term Description Entries
D010067 Ownership The legal relation between an entity (individual, group, corporation, or-profit, secular, government) and an object. The object may be corporeal, such as equipment, or completely a creature of law, such as a patent; it may be movable, such as an animal, or immovable, such as a building. Property Rights,Property Right,Rights, Property
D010343 Patient Admission The process of accepting patients. The concept includes patients accepted for medical and nursing care in a hospital or other health care institution. Voluntary Admission,Admission, Patient,Admission, Voluntary,Admissions, Patient,Admissions, Voluntary,Patient Admissions,Voluntary Admissions
D011157 Population Dynamics The pattern of any process, or the interrelationship of phenomena, which affects growth or change within a population. Malthusianism,Neomalthusianism,Demographic Aging,Demographic Transition,Optimum Population,Population Decrease,Population Pressure,Population Replacement,Population Theory,Residential Mobility,Rural-Urban Migration,Stable Population,Stationary Population,Aging, Demographic,Decrease, Population,Decreases, Population,Demographic Transitions,Dynamics, Population,Migration, Rural-Urban,Migrations, Rural-Urban,Mobilities, Residential,Mobility, Residential,Optimum Populations,Population Decreases,Population Pressures,Population Replacements,Population Theories,Population, Optimum,Population, Stable,Population, Stationary,Populations, Optimum,Populations, Stable,Populations, Stationary,Pressure, Population,Pressures, Population,Replacement, Population,Replacements, Population,Residential Mobilities,Rural Urban Migration,Rural-Urban Migrations,Stable Populations,Stationary Populations,Theories, Population,Theory, Population,Transition, Demographic,Transitions, Demographic
D011445 Prospective Payment System A system wherein reimbursement rates are set, for a given period of time, prior to the circumstances giving rise to actual reimbursement claims. Discretionary Adjustment Factor,Prospective Pricing,Prospective Reimbursement,Reimbursement, Prospective,Adjustment, Discretionary,Adjustment Factor, Discretionary,Adjustment Factors, Discretionary,Adjustments, Discretionary,Discretionary Adjustment,Discretionary Adjustment Factors,Discretionary Adjustments,Factor, Discretionary Adjustment,Factors, Discretionary Adjustment,Payment System, Prospective,Payment Systems, Prospective,Pricing, Prospective,Prospective Payment Systems,Prospective Reimbursements,Reimbursements, Prospective,System, Prospective Payment,Systems, Prospective Payment
D002391 Catchment Area, Health A geographic area defined and served by a health program or institution. Health Service Area,Health Catchment Area,Service Area, Health,Area, Health Catchment,Area, Health Service,Areas, Health Catchment,Areas, Health Service,Catchment Areas, Health,Health Catchment Areas,Health Service Areas,Service Areas, Health
D003625 Data Collection Systematic gathering of data for a particular purpose from various sources, including questionnaires, interviews, observation, existing records, and electronic devices. The process is usually preliminary to statistical analysis of the data. Data Collection Methods,Dual Data Collection,Collection Method, Data,Collection Methods, Data,Collection, Data,Collection, Dual Data,Data Collection Method,Method, Data Collection,Methods, Data Collection
D006278 Medicare Federal program, created by Public Law 89-97, Title XVIII-Health Insurance for the Aged, a 1965 amendment to the Social Security Act, that provides health insurance benefits to persons over the age of 65 and others eligible for Social Security benefits. It consists of two separate but coordinated programs: hospital insurance (MEDICARE PART A) and supplementary medical insurance (MEDICARE PART B). (Hospital Administration Terminology, AHA, 2d ed and A Discursive Dictionary of Health Care, US House of Representatives, 1976) Health Insurance for Aged and Disabled, Title 18,Insurance, Health, for Aged and Disabled,Health Insurance for Aged, Disabled, Title 18,Health Insurance for Aged, Title 18
D006748 Hospital Departments Major administrative divisions of the hospital. Departments, Hospital,Department, Hospital,Hospital Department
D006764 Hospitals, Community Institutions with permanent facilities and organized medical staff which provide the full range of hospital services primarily to a neighborhood area. Community Hospital,Community Hospitals,Hospital, Community
D001509 Bed Occupancy A measure of inpatient health facility use based upon the average number or proportion of beds occupied for a given period of time. Bed Occupancies,Occupancies, Bed,Occupancy, Bed

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