FINANCIAL EFFECTS OF REGULATORY CHANGE Gruca and

FINANCIAL EFFECTS OF REGULATORY CHANGE

Gruca and Nath (1994, pp. 345-363) reported the results of a study that found that introduction of the prospective payment system by the federal government in the administration of the Medicare Program in 1983 created over the succeeding years patient and financial structures in acute care hospitals that in turn mode it difficult for many of these hospitals to adapt to the post prospective payment system that was later introduced by the federal government, and which now characterized governmental reimbursement of acute care hospitals for health care services delivered to patients covered by governmental programs. The patient an financial structural relationships that are relevant within the context of these findings are (1) the proportion of an acute care hospital's private-pay patients to the ho

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