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Psychiatric facilities and DRG weights

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Abstract

Public and private hospitals and certain distinct part psychiatric units in general hospitals are currently exempt from Medicare's Prospective Payment System (PPS). The current PPS weights for psychiatric DRGs do not reflect the costs of these exempt hospitals or units. Therefore, new weights of some type would be required were these providers to be brought under PPS. This paper analyzes DRG weights for psychiatric illness for each type of exempt facility. The results indicate that private psychiatric hospitals would fare better with chargebased weights, while public psychiatric facilities would do better financially with cost-based weights.

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References

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Authors and Affiliations

  1. National Center for Health Services Research, 5600 Fishers Lane, Room 18-A55, 20857, Rockville, MD

    Marc P. Freiman Ph.D.

  2. Health Economics Research, Inc., 75 Second Ave., Suite 100, 02194, Needham, MA

    Ann M. Hendricks Ph.D.

Authors
  1. Marc P. Freiman Ph.D.
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  2. Ann M. Hendricks Ph.D.
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Additional information

This research was funded by National Institute of Mental Health Contract No. NIMH-278-86-0002 (BA). Neither the views of NIMH nor the National Center for Health Services Research are necessarily represented here.

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Freiman, M.P., Hendricks, A.M. Psychiatric facilities and DRG weights. Adm Policy Ment Health 17, 125–137 (1990). https://doi.org/10.1007/BF00706081

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  • DOI: https://doi.org/10.1007/BF00706081

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