THE IMPACT OF THE EXTENDED-CARE FACILITY BENEFIT ON HOSPITAL USE AND REIMBURSEMENTS UNDER MEDICARE.

The coverage of extended-care facilities (ECFs) under Medicare was intended as a means of shortening patient stays in short-term hospitals and reducing the overall costs of the program. Regression analysis of state data on the average hospital stay for Medicare patients in 1967 and 1968 shows that the use of ECFs has, in fact, contributed to shorter stays. Further, the savings in hospital reimbursements, estimated from the regressions, more than outweighed the costs of ECF care in both years. [ABSTRACT FROM AUTHOR]