Did recent changes in Medicare reimbursement hit teaching hospitals harder?
Konetzka RT; Zhu J; Volpp KG The University of Chicago, Department of Health Studies, 5841 S. Maryland Avenue, MC2007, Chicago IL 60637, USA. konetzka@health.bsd.uchicago.edu PURPOSE: To inform the policy debate on Medicare reimbursement by examining the financial effects of the Balanced Budget Act of 1997 (BBA) and subsequent adjustments on major academic medical centers, minor teaching hospitals, and nonteaching hospitals. METHOD: The authors simulated the impacts of BBA and subsequent BBA adjustments to predict the independent effects of changes in Medicare reimbursement on hospital revenues using 1997-2001 Medicare Cost Reports for all short-term acute-care hospitals in the United States. The authors also calculated actual (nonsimulated) operating and total margins among major teaching, minor teaching, and nonteaching hospitals to account for hospital response to the changes. RESULTS: The BBA and subsequent refinements reduced Medicare revenues to a greater degree in major teaching
