Appropriate use of hospital resources and the quality of patient care was precipitated by Medicare legislation.

Question

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The Medicare legislation, specifically the Prospective Payment System (PPS) established in 1983, incentivized hospitals to be more efficient with their use of resources by paying them a fixed amount for each diagnosis/procedure instead of reimbursing them for each individual service provided. This shift in payment structure has helped improve the appropriate use of hospital resources and the quality of patient care.

Appropriate Use of Hospital Resources and the Quality of Patient