Impact of DRG Reimbursement

Despite the multiplicity of factors which contributed to the surge in health expenditures, federal policy to resolve this dilemma has focused on cost containment strategies. In particular, the Tax Equity and Fiscal Responsibility Act which spawned the DRG system, has been acclaimed as a success in containing hospital costs. Further analysis suggests that costs may not have declined significantly, but may have been absorbed in other sectors of the health care industry. Conversely, qualitative factors which influence patient care and concomitant costs may have been omitted from governmental data. Systems intervention to illuminate these discrepancies and insure humane care for the elderly are proposed for social workers in the health care system.