The rising cost The rising cost of medical care in the United States has been a concern for quite some time. Beginning in the 1960s with the advent of Medicare, a system has been needed that will ba
The rising cost The rising cost of medical care in the United States has been a concern for quite some time. Beginning in the 1960s with the advent of Medicare, a system has been needed that will ba
(Burke, (DRGs) (Kahn, (PPS) 1960s 1980s 1982, 1992). 20 2019). A Australia, B. Beginning Congress D. DRGs Fetter Finland, France, In Ireland John Kingdom, Medicare Medicare, Norway, Robert Some Spain, States Taiwan, The This Thompson US United a abroad. acceptable according adequate admission adopted advent al, and as balance based basis been but by calculation cap cap, care case concern cost countries, determined developed diagnosis diagnostic each early estimated et expanded expenses five flat for form four grouped groups has hospital, hospitals in include including initiated insure is length limits. measure medical more needed non-Medicare o of on one operating originally parameters. payment placed prospective protective provided quite rate rates reasonable receive refined related required result rising services services, set situations six some stay system system. technology than that the three time. to treated treatment tw two type up use was whereby will with within
The rising cost of medical care in the United States has been a concern for quite some time. Beginning in the 1960s with the advent of Medicare, a system has been needed that will balance cost with services provided within acceptable parameters. In 1982, the US Congress placed a cap on operating expenses for each Medicare case treated in a hospital, as a protective measure to insure adequate payment within reasonable limits. A prospective payment system (PPS) was initiated as a result of the cap, whereby hospitals receive a flat rate for each admission based on a calculation of rates determined by the diagnosis (Kahn, et al, 2019). A system whereby the diagnosis is grouped according to services, estimated length of stay and type of technology required for treatment was developed by Robert B. Fetter and John D. Thompson in the early 1980s (Burke, 2019). The diagnostic related groups (DRGs) form the basis for the payment system. This system was originally set up for use with Medicare but has been refined and expanded to include non-Medicare situations in the United States and abroad. Some form of DRGs has been adopted in more than 20 countries,