Antonio M. Gotto and Jennifer Moon
- Published in print:
- 2016
- Published Online:
- August 2016
- ISBN:
- 9781501702136
- eISBN:
- 9781501703676
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501702136.003.0008
- Subject:
- Education, Higher and Further Education
This chapter looks at how the federal government and private insurers began setting limits on the amount of money they were willing to pay for medical care. Under legislation enacted in 1983, ...
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This chapter looks at how the federal government and private insurers began setting limits on the amount of money they were willing to pay for medical care. Under legislation enacted in 1983, hospitals began receiving a set fee for Medicare patients based on their diagnoses, regardless of how much it actually cost to treat them. Another challenging development was the rise of managed care. Under this system, third-party payers, such as employer-sponsored health insurance plans, attempted to reduce medical costs by limiting the number of hospitalizations and the use of specialists by member patients. These health care trends threatened New York Hospital, Cornell University Medical College, and by extension, Cornell University. As the New York Hospital–Cornell Medical Center struggled to handle these challenges throughout the 1980s, relations between the hospital and medical school continued to deteriorate.Less
This chapter looks at how the federal government and private insurers began setting limits on the amount of money they were willing to pay for medical care. Under legislation enacted in 1983, hospitals began receiving a set fee for Medicare patients based on their diagnoses, regardless of how much it actually cost to treat them. Another challenging development was the rise of managed care. Under this system, third-party payers, such as employer-sponsored health insurance plans, attempted to reduce medical costs by limiting the number of hospitalizations and the use of specialists by member patients. These health care trends threatened New York Hospital, Cornell University Medical College, and by extension, Cornell University. As the New York Hospital–Cornell Medical Center struggled to handle these challenges throughout the 1980s, relations between the hospital and medical school continued to deteriorate.
