Article: Prospective payment for Medicare hospital capital: implications of the research. (Cost-Containment Issues, Methods, and Experiences)

Introduction

The 1983 Amendments to the Social Security Act (Public Law 98-21)enacted the Medicare prospective payment system (PPS) for the payment of hospital impatient operating costs, but spending further study, continued cost-based payment of capital costs until October 1, 1986. On June 3, 1986, the U.S. Department of Health and Human Service (DHHS) issued proposed regulations for incorporating capital payments into PPS. In July 1986, legislation (Public Law 99-349) was passed that extended the exclusion of capital from PPS until October 1, 1987. In May and September 1987, DHHS issued proposed and final regulations to fold capital payments into PPS. ...

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