Am J Psychiatry 1987; 144:603-609
Copyright © 1987 by American Psychiatric Association
An analysis of DRG-based reimbursement for psychiatric admissions to general hospitals
MP Freiman, JB Mitchell and ML Rosenbach
The authors analyzed the potential financial impact of paying general
hospitals on the basis of diagnosis-related groups (DRGs) for Medicare
alcohol-drug abuse and psychiatric admissions. Average costs per admission
were substantially higher for general hospitals with special psychiatric
units that are currently exempt from the prospective payment system (PPS)
than for hospitals without exempt units. Simulations of DRG-related
payments indicated that these payments would be greater for admissions to
hospitals with exempt psychiatric units than for admissions to hospitals
without exempt units. However, the differences in costs between these two
types of facilities were greater than the differences in payments that
would occur under a PPS.
