Impact of a function-based payment model on the financial performance of acute inpatient medical rehabilitation providers: a simulation analysis

Archives of Physical Medicine and Rehabilitation
J P SuttonD Wilkerson

Abstract

To operationalize research findings about a medical rehabilitation classification and payment model by building a prototype of a prospective payment system, and to determine whether this prototype model promotes payment equity. This latter objective is accomplished by identifying whether any facility or payment model characteristics are systematically associated with financial performance. This study was conducted in two phases. In Phase 1 the components of a diagnosis-related group (DRG)-like payment system, including a base rate, function-related group (FRG) weights, and adjusters, were identified and estimated using hospital cost functions. Phase 2 consisted of a simulation analysis in which each facility's financial performance was modeled, based on its 1990-1991 case mix. A multivariate regression equation was conducted to assess the extent to which characteristics of 42 rehabilitation facilities contribute toward determining financial performance under the present Medicare payment system as well as under the hypothetical model developed. Phase 1 (model development) included 61 rehabilitation hospitals. Approximately 59% were rehabilitation units within a general hospital and 48% were teaching facilities. The number of reh...Continue Reading

References

Jan 1, 1992·Perspectives in Biology and Medicine·B Williams, G Williams
Jun 19, 1987·JAMA : the Journal of the American Medical Association·J C Robinson, H S Luft
Apr 1, 1995·Archives of Physical Medicine and Rehabilitation·S TepperR Brannon
Apr 1, 1994·Medical Care·M G StinemanS V Williams
Jul 1, 1996·Archives of Physical Medicine and Rehabilitation·J P SuttonD Wilkerson

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Citations

Sep 19, 2003·Archives of Physical Medicine and Rehabilitation·Melodee MancusoKenneth J Ottenbacher
Feb 18, 2004·Archives of Physical Medicine and Rehabilitation·Grace WarnerAmy Rosen

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