Table 6. Average annual percent change in Medicaid inpatient hospital expenditures and recipients, by type of alternative reimbursement policy: United States, 1977-84.

Policy	Sample size		Real total inpatient expenditures		Inpatient recipients		Real expenditures per recipient
	Without policy	With policy	Without policy	With policy	Without policy	With policy	Without policy	With policy
				Average annual percent change
Prospective reimbursement	228	122	6.4	20.6	1.4	2−0.9	5.7	21.7
Specific features of prospective reimbursement systems:1
Payments per case	93	29	0.9	−0.1	−0.6	−1.7	1.6	2.2
Rate ceilings	68	54	1.4	−0.2	−1.5	−0.1	2.9	0.3
Uncompensated care allowance	52	70	1.8	−0.2	−0.6	−1.1	3.0	0.8
Volume adjustment	61	61	1.9	−0.6	−0.7	−0.9	2.8	0.7
Case-mix adjustment	74	48	0.7	0.5	−1.2	−0.4	2.0	1.4
Minimum occupancy requirement	98	24	0.5	−1.4	−1.2	0.4	1.8	2−1.4

¹The average annual percent changes in the remaining rows are based only on States with prospective reimbursement for Medicaid. These are the 122 observations with prospective reimbursement shown in the first row.

²Differences between the percent changes for groups with and without the policy are statistically significant at the 95-percent level of confidence.

NOTE: Aged recipients are excluded from this analysis because payments for their services are mainly affected by Medicare rules.

SOURCE: Health Care Financing Administration, Office of the Actuary: HCFA 2082 data from the Medicaid Statistical Information System.