Quality of Care Before and After Implementation of the DRG-based Prospective Payment System

A Summary of Effects

Published in: JAMA, Journal of the American Medical Association, v. 264, no. 15, Oct. 17, 1990, p. 1989-1994

Posted on RAND.org on January 01, 1990

by William H. Rogers, David Draper, Katherine L. Kahn, Emmett B. Keeler, Lisa V. Rubenstein, Jacqueline Kosecoff, Robert H. Brook

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This article was published outside of RAND. The full text of the article can be found at the link above.

In this article the authors report on a mortality analysis, patient and hospital subgroup comparisons, and time series studies they have conducted in an attempt to determine whether changes in quality of care can be linked causally to the introduction of the prospective payment system. Based on these analyses the authors conclude that (1) mortality following hospitalization has been unaffected by the introduction of the prospective payment system, and improvements in in-hospital processes of care that began prior to the prospective payment system have continued after its introduction, but (2) the prospective payment system has increased the likelihood that a patient will be discharged home in an unstable condition. The authors recommend that efforts to correct this problem be intensified and that clinical monitoring of the impact of the prospective payment system continue as hospital cost-containment pressures intensify.

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