Health Affairs

Health Affairs, 27, no. 1 (2008): 269-280 doi: 10.1377/hlthaff.27.1.269 © 2008 by Project HOPE	New Online   Getting Health Reform Done   After the State of the Union   Incremental Reform   E-Health in Developing World   Most-Read Articles in 2009

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DataWatch

New Directions In Medicaid Payment For Hospital Care

Kevin Quinn

Medicaid now pays for 20 percent of all inpatient stays and plays an especially important role in funding obstetric, pediatric, and mental health care. In coming years, policy decisions on inpatient payment may be the most consequential since diagnosis-related groups (DRGs) were introduced two decades ago. This study describes Medicaid’s growing role in purchasing inpatient care, reports Medicaid-specific results from an evaluation of three DRG algorithms, provides a case study of a new payment method designed in Mississippi, and summarizes recent developments in paying for quality.

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