The Myth of Length of Stay
When Medicare introduced its prospective payment system in 1983, the flat fee reimbursement method suggested that shorter length of stay would increase hospital profits. But the logic was flawed. Resource consumption did not decline, and physicians continued to practice exactly the way they did pre-DRG—but they did it in fewer days. Author Stefani Daniels says hospitals now have the tools available to dig deeper into solutions for these problems. If only they would use them.