DRGs in operation: one hospital's story

Article Abstract:

Overlook Hospital in Summit, New Jersey has completed a one-year experimental program using diagnosis-related groups. The reimbursement for care was based on patient diagnosis, not the cost of the service. Overlook Hospital had an operating profit for the year, but managers are still studying the diagnoses where the total hospital cost was more than payments for particular cases.

Analysis

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AHA's McMahon says: 'prospective payment' lesser of two evils

Article Abstract:

Alex McMahon, president of the American Hospital Association, feels that hospital care cost control might be handled by prospective payments; that is, the setting of standard prices for hospital services. Standard pricing help curtail the high yearly increases in hospital care expenses and reduce them proportionately to yearly increases in the gross national product.

Officials and employees, Economic aspects, Interview, McMahon, Alex

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Capital costs, calculation of prices principal issues in DRG legislation

Article Abstract:

Under proposed legislation Medicare patient care in hospitals would be reimbursed on the basis of diagnosis-related groups (DRG). The House and Senate are working on overcoming the differences between DRG reimbursement of capital costs and pricing policy during the transition period.

Legislative bodies, Laws, regulations and rules, Political activity, Economic policy, United States. Congress

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