Hospital responses to price shocks under the prospective payment system mydrg.de

Hospital responses to price shocks under the prospective payment system (Wiley).

Under the prospective payment system (PPS), hospitals receive a bundled payment for an entire episode of treatment based on diagnosis‐related groups (DRG). Although there is ample evidence regarding the impact of the introduction of the PPS, there is little research
on the effects of the ensuing changes in payment levels under the PPS.
[...]
These results suggest that paying a higher
price for a given service may not induce hospitals to offer services of better
quality, but can rather prompt even higher payments through other behavioral
responses.

Quelle: Wiley, 15.11.2018