Examines how the initial policy change affected rural and
urban hospitals and investigates the likely impact of the
FY2004 expansion and other possible future expansions.
The authors conclude that rural hospitals are not
disproportionately harmed by the post-acute-care transfer
policy. An expanded policy may even benefit rural
hospitals by recognizing their lower use of
post-acute-care and readjusting DRG weights so that they
are paid more appropriately when providing the full
course of inpatient care.