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Fiscal Implications of a Childhood Disorder DRG

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Abstract.

There is considerable interest in the development of a viable prospective payment system for psychiatry. Under the currently proposed system, all child/adolescent psychiatric admissions would be assigned to a single DRG. An alternative set of three DRGs, based on a service variable, were previously identified. Assuming no decrease in the per diem cost for extended lengths of stay, the eight public hospitals in the sample would be compensated at 54% of cost using the single-DRG model and at 83% of cost using the three-DRG model.

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    An earlier version of this paper was presented at the Thirty-Fourth Annual Meeting of the American Academy of Child and Adolescent Psychiatry, October 1987, in Washington, D.C.

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