Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
Comparative Study
. 1992 Winter;14(2):49-58.

Geographic classification of hospitals: alternative labor market areas

N De Lew  1
Affiliations
Comparative Study

Geographic classification of hospitals: alternative labor market areas

N De Lew. Health Care Financ Rev. 1992 Winter.

Abstract

Medicare hospital payments are adjusted to reflect variation in hospital wages across geographic areas by grouping hospitals into labor market areas. By only recognizing the average wage in an area, Medicare encourages hospitals to contain costs. Labor market area definitions have recently received renewed attention because of their impact on hospital payments. Alternative labor market areas were evaluated using several criteria, including ability to explain wage variation and impact on payment equity. Rural labor market areas can be improved using county population size; however, further research on urban labor market areas is needed.

PubMed Disclaimer

References

    1. Ashby J. The Inequity of Medicare Prospective Payment in Large Urban Areas. District of Columbia Hospital Association; Washington, DC.: Sept. 1984.
    1. Ashby J, Parmer C. The Impact of Prospective Payment on Central City and Suburban Hospitals. Health Affairs. 1985 Winter;4(4):99–108. - PubMed
    1. Cromwell J, Hendricks A, Pope G. Report on Geographic (Urban-Rural) Refinements to PPS Payment Adjustment. Needham, MA.: Sept. 1986. Contract Number 500-85-0015. Prepared for the Health Care Financing Administration.
    1. Eberts RW. An Empirical Investigation of Intraurban Wage Gradients. Journal of Urban Economics. 1981 Jul;10(1):50–60.
    1. Federal Register: Medicare program; changes to the inpatient hospital prospective payment system and fiscal year 1991 rates; Final rule. No. 170. Vol. 55. Washington: U.S. Government Printing Office; Sept. 1990. pp. 36043–36050.pp. 36169–36173. Office of the Federal Register, National Archives and Records Administration. - PubMed

Publication types

MeSH terms

LinkOut - more resources