The Origins, Development, and Passage of Medicare's Revolutionary Prospective Payment System

@article{Mayes2007TheOD,
  title={The Origins, Development, and Passage of Medicare's Revolutionary Prospective Payment System},
  author={R. Mayes},
  journal={Journal of the History of Medicine and Allied Sciences},
  year={2007},
  volume={62},
  pages={21 - 55}
}
  • R. Mayes
  • Published 8 February 2006
  • Medicine
  • Journal of the History of Medicine and Allied Sciences
This article explains the origins, development, and passage of the single most influential postwar innovation in medical financing: Medicare's prospective payment system (PPS). Inexorably rising medical inflation and deep economic deterioration forced policymakers in the late 1970s to pursue radical reform of Medicare to keep the program from insolvency. Congress and the Reagan administration eventually turned to the one alternative reimbursement system that analysts and academics had studied… 
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