Table 5. Basic State Medicaid Hospital Prospective Payment System Characteristics.
| State | Implementation Date | How Hospital Rates are Set | DRG Set Used | Frequency of DRG Update | Weights Used | Frequency of Weight Update |
|---|---|---|---|---|---|---|
| Colorado | December 15, 1989 | Hospital cost | Medicare | 1 year | South Carolina | 1 year |
| Illinois | September 1,1991 | Medicare formula | Medicare + | 1 year | State's own | 3 years |
| Iowa | October 1987 | Hospital cost | Medicare | State's own | 1 year | |
| Kansas | July 1,1989 | Peer group with hospital-specific education adjustment | Medicare | 1 year | State's own | |
| Michigan | February 1, 1985 | Hospital cost | Medicare | 2 years | State's own | |
| Minnesota | August 1985 | Hospital cost | Medicare (Condensed to 76 DRGs) | State's own | 2 years | |
| Montana | Fall 1987 | Peer group | Medicare | State's own | 1 year | |
| New Hampshire | January 1, 198 | One rate | Medicare | 1 year | HCFA + State's own (Psychiatry) | 1 year |
| New Jersey | 1980-82 | Hospital characteristics formula | New York State | State's own | 1 year | |
| New Mexico | February 1,1989 | Hospital cost | Medicare | 3 years | State's own (Amplified) | 3 years |
| New York | January 1988 | Mixed | New York State | State's own | ||
| North Dakota | July 1, 1987 | Peer group | Medicare | 1 year | State's own + Montana | 1 year review |
| Ohio | October 1984 | Peer group | Medicare + | State's own | ||
| Oregon | October 1985 | Hospital cost | Medicare + | 1 year | State's own | 1 year |
| Pennsylvania | July 1984 | Hospital cost | Medicare | State's own | ||
| South Carolina | December 1986 | Mixed | Medicare | 1 year | State's own | |
| South Dakota | January 1985 | Hospital cost | Medicare | 1 year | State's own | 1 year |
| Texas | September 1986 | Peer group | Medicare | 1 year | State's own | 1 year |
| Utah | July 1983 | Mixed | Medicare | State's own + HCFA | ||
| Washington | January 1985 | Mixed | New York State | State's own + New York State | ||
| Wisconsin | January 1, 1991 | Hospital characteristics formula | Medicare + | 1 year | State's own | 1 year |
NOTES: DRG is diagnosis-related group. HCFA is Health Care Financing Administration.
SOURCE: Carter, G.M., Jacobson, P.D., Kominski, G.F., and Perry, M.J., RAND, 1994.