PMID- 18423657 OWN - NLM STAT- MEDLINE DCOM- 20080930 LR - 20181201 IS - 0167-6296 (Print) IS - 0167-6296 (Linking) VI - 27 IP - 4 DP - 2008 Jul TI - Does how much and how you pay matter? Evidence from the inpatient rehabilitation care prospective payment system. PG - 1046-1059 LID - 10.1016/j.jhealeco.2008.01.003 [doi] AB - We use the implementation of a new prospective payment system (PPS) for inpatient rehabilitation facilities (IRFs) to investigate the effect of changes in marginal and average reimbursement on costs. The results show that the IRF PPS led to a significant decline in costs and length of stay. Changes in marginal reimbursement associated with the move from a cost-based system to a PPS led to a 7-11% reduction in costs. The elasticity of costs with respect to average reimbursement ranged from 0.26 to 0.34. Finally, the IRF PPS had little or no impact on mortality or the rate of return to community residence. FAU - Sood, Neeraj AU - Sood N AD - RAND & NBER, USA. FAU - Buntin, Melinda Beeuwkes AU - Buntin MB AD - RAND Corporation Health, 1200 South Hayes Street, Arlington, VA 22202, USA. FAU - Escarce, Jose J AU - Escarce JJ AD - RAND, UCLA School of Medicine & NBER, USA. LA - eng PT - Journal Article PT - Research Support, Non-U.S. Gov't DEP - 20080310 PL - Netherlands TA - J Health Econ JT - Journal of health economics JID - 8410622 MH - *Evidence-Based Medicine MH - *Inpatients MH - *Prospective Payment System MH - Rehabilitation Centers/*economics/*statistics & numerical data MH - United States EDAT- 2008/04/22 09:00 MHDA- 2008/10/01 09:00 CRDT- 2008/04/22 09:00 PHST- 2006/09/18 00:00 [received] PHST- 2007/12/21 00:00 [revised] PHST- 2008/01/31 00:00 [accepted] PHST- 2008/04/22 09:00 [pubmed] PHST- 2008/10/01 09:00 [medline] PHST- 2008/04/22 09:00 [entrez] AID - S0167-6296(08)00006-4 [pii] AID - 10.1016/j.jhealeco.2008.01.003 [doi] PST - ppublish SO - J Health Econ. 2008 Jul;27(4):1046-1059. doi: 10.1016/j.jhealeco.2008.01.003. Epub 2008 Mar 10.