Norton, Edward C.; Houtven, Courtney Harold Van; … - In: Health Economics 11 (2002) 5, pp. 377-387
A change in payment mechanism for inpatient care from per diem to per episode creates two incentives - a marginal and an average price effect - to change length of stay. The decrease in marginal price per day to zero should reduce the length of stay, while an increase in average price per...