How did the PPS based on DRGs lead to hospital downsizing in the United States?

Question

Quizplus · Accepted Answer

DRG-based PPS created financial incentives for hospitals to minimize the length of stay for patients, leading to the discharge of patients earlier than before. This, in turn, led to a decrease in the demand for hospital beds, which eventually led to hospital downsizing. The other options (A, B, and C) are not directly related to how DRG-based PPS led to hospital downsizing.

How Did the PPS Based on DRGs Lead to Hospital