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. 2003 Spring;24(3):25-44.

Measuring function for Medicare inpatient rehabilitation payment

Grace M Carter  1 , Daniel A Relles, Gregory K Ridgeway, Carolyn M Rimes
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Measuring function for Medicare inpatient rehabilitation payment

Grace M Carter et al. Health Care Financ Rev. 2003 Spring.

Abstract

We studied 186,766 Medicare discharges to the community in 1999 from 694 inpatient rehabilitation facilities (IRF). Statistical models were used to examine the relationship of functional items and scales to accounting cost within impairment categories. For most items, more independence leads to lower costs. However, two items are not associated with cost in the expected way. The probable causes of these anomalies are discussed along with implications for payment policy. We present the rules used to construct administratively simple, homogeneous, resource use groups that provide reasonable incentives for access and quality care and that determine payments under the new IRF prospective payment system (PPS).

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Figures

Figure 1
Figure 1. Density of Cases with Each Motor Score for Stroke and Lower Extremity Joint Replacement: 1999
Figure 2
Figure 2. Density of Cases with Each Cognitive Score for Stroke and Lower Extremity Joint Replacement: 1999
Figure 3
Figure 3. Motor Score Component of the Generalized Additive Model Fit for Stroke and Lower Extremity Joint Replacement: 1999
Figure 4
Figure 4. Cognitive Score Component of the Generalized Additive Model Fit for Stroke and Lower Extremity Joint Replacement: 1999
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References

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    1. Buchanan JL, Andres P, Haley S, et al. Final Report on Assessment Instruments for PPS. RAND; Santa Monica, CA.: 2002.
    1. Carter GM, Relles DA, Buchanan JL. A Classification System for Inpatient Rehabilitation Patients: A Review and Proposed Revisions to the Functional Independence Measure—Function Related Groups. RAND; Santa Monica, CA.: 1997. National Technical Information Service Number: PB98105992.
    1. Carter GM, Buchanan JL, Donyo T, et al. A Prospective Payment System for Inpatient Rehabilitation. RAND; Santa Monica, CA.: 1997. National Technical Information Service Number: PB98106024.
    1. Carter GM, Buntin MB, Hayden O, et al. Analyses for the Initial Implementation of the Inpatient Rehabilitation Facility Prospective Payment System. RAND; Santa Monica, CA.: 2002.

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