Abstract:
:The production of health care services has the unique feature that physicians do not face explicit costs for hospital inputs. This paper develops models of the production process given alternative hospital and medical staff relationships, and analyzes the impact of the change in hospital reimbursement under Medicare from a cost-based system to the Prospective Payment System (PPS). A basic theoretical result finds that the switch to PPS forces physicians to alter their input mix, changing both physician and hospital income. The effects of the introduction of PPS on hospital inputs, physician income, and hours of work are empirically examined.
journal_name
J Health Econjournal_title
Journal of health economicsauthors
Custer WS,Moser JW,Musacchio RA,Willke RJdoi
10.1016/0167-6296(90)90016-vsubject
Has Abstractpub_date
1990-09-01 00:00:00pages
167-92issue
2eissn
0167-6296issn
1879-1646pii
0167-6296(90)90016-Vjournal_volume
9pub_type
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