Feigenbaum, Susan; Anderson, Gerard; Lave, Judith R - In: The Review of Economics and Statistics 74 (1992) 1, pp. 185-91
Since 1979, the Medicare program has relied upon hospital cost function parameter estimates to develop a hospital-level and, subsequently, patient-level reimbursement system. This paper demonstrates that the resulting payment adjusters are derived from biased estimates of the impact of patient...