AN EXAMINATION OF WINNERS AND LOSERS UNDER MEDICARES PROSPECTIVE PAYMENT SYSTEM

Through case studies of 10 matched pairs of winner and loser hospitals under the Medicare prospective payment system (PPS), specific charact eristics and management actions were identified that are related to st rong financial performance. Because other payers are increasingly adop ting PPS-like cost control incentives and because managed care is fund amental to the national health care reform debate, the successful stra tegies identified in this article may be of increasing importance to h ospital managers.