PPS implementation effects on efficiency and cost control in the hospital industry.

Abstract Empirical evidence is provided concerning the irr-pact of Public Law 98-21 on the operation of United States hospitals. The Box-Jenkins autoregressive integrated moving average model was used to analyze the impact of the law on efficiency and cost containment practices over a 24-year time period. Four cost containment variables and three efficiency variables were studied. Public Law 98-21 was the intervention and 1984 was the intervention year in which to evaluate impact assessment. Children'S hospitals were used as a control group. Results of the research indicated no impact on cost containment practices and a significant impact on efficiency of hospital operations