Prospective Payment for CHAMPUS Exempt Services

An Analysis of Children's Hospitals, Substance Abuse Services, and Psychiatric Services

by Jack Zwanziger, Elizabeth M. Sloss, Susan D. Hosek, Anil Bamezai, Lois M. Davis, K. M. Cameron


Full Document

FormatFile SizeNotes
PDF file 5.2 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback129 pages $30.00 $24.00 20% Web Discount

In an effort to control rapidly increasing costs, the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) adopted a prospective payment system for inpatient services in October 1987. This report presents the results of an analysis of prospective payment options for three services exempt from the CHAMPUS diagnosis-related group (DRG) payment system. Although specific issues differ for children's hospitals, substance abuse services, and psychiatric services, the report considers (1) the characteristics of the use of these services under CHAMPUS, (2) alternative payment systems CHAMPUS would consider for implementation, (3) how well these payment options capture differences in resource use across patients and hospitals, (4) whether modifications of previous methods are necessary because of the unique characteristics of the CHAMPUS population, and (5) the impact of a DRG system on hospitals' CHAMPUS revenues, especially for hospitals with high CHAMPUS volumes.

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.