Comments on: A UK hospital is fined for treating people too quickly http://www.kevinmd.com/blog/2006/08/uk-hospital-is-fined-for-treating.html Tue, 14 Feb 2012 19:56:00 +0000 hourly 1 By: Dr. Stevehttp://www.kevinmd.com/blog/2006/08/uk-hospital-is-fined-for-treating.html#comment-65729 Dr. Steve Wed, 02 Aug 2006 16:28:00 +0000 http://clients.emmense.com/kevinmd/2006/08/a-uk-hospital-is-fined-for-treating-people-too-quickly.html#comment-65729 That happens here too. Medicare, as you may know, pays hospitals with DRG's - a lump sum for a particular diagnosis. So, the hospital gets more per day if the stay is shorter. <br/><br/>That is until a few years ago when "transfer DRGs" were originated. There are now 82 DRGs for which the hospital will receive a pro-rated amount if the patient stays in less time than the "Geometeric mean length-of-stay" and is transfered to any other level of care (hospital, nursing home or even home care). <br/><br/>So the hospital is incented to either a) discharge the patient at the exact time of the GM-LOS or b)send them home with no services.<br/><br/>Medicare's message to hospitals: "Do too good a job and you will make less money" That happens here too. Medicare, as you may know, pays hospitals with DRG’s – a lump sum for a particular diagnosis. So, the hospital gets more per day if the stay is shorter.

That is until a few years ago when “transfer DRGs” were originated. There are now 82 DRGs for which the hospital will receive a pro-rated amount if the patient stays in less time than the “Geometeric mean length-of-stay” and is transfered to any other level of care (hospital, nursing home or even home care).

So the hospital is incented to either a) discharge the patient at the exact time of the GM-LOS or b)send them home with no services.

Medicare’s message to hospitals: “Do too good a job and you will make less money”

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