Medicare's Prospective Payment System: The Victim of Aggregation Bias?

TY - JOUR

T1 - Medicare's Prospective Payment System: The Victim of Aggregation Bias?

AU - Feigenbaum, Susan

AU - Anderson, Gerard

AU - Lave, Judith R.

N1 - Downloadable (with restrictions)! Since 1979, the Medicare program has relied upon hospital cost function parameter estimates to develop a hospital-level and, subsequently, patient-level reimbursement system. This paper demonstrates that the resulting payment adjusters are derived from biased estimates of the impact of patient and hospital-specific characteristics on individual treatment cost.

PY - 1992/2/1

Y1 - 1992/2/1

UR - https://ideas.repec.org/a/tpr/restat/v74y1992i1p185-91.html

U2 - 10.2307/2109559

DO - 10.2307/2109559

M3 - Article

VL - 74

JO - The Review of Economics and Statistics

JF - The Review of Economics and Statistics

ER -