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Discuss the expansion of hospital services in the United States and what role did the prospective payment system play on the downsizing of U.S. hospitals?
Expert Answer
Answer:-
The major factors which contributed the expansion in 1872-1929 are as below:-
Appeal of hospitals as the main organizations or institutions for medical practices and treatment
Some kind of profit were made by these hospitals,
They initiated the surgical technologies and professional nursing.
After 1940, they witnessed the following changes:-
As health care services started to become costlier, private heath insurance paid for these services
Expansion of hospitals was really boosted by Hill- Burton Act of 1946 and the creation of Medicare and Medicaid in 1965.
Answer:-Many hospital units were forced to shut down mainly due to the reason that they were not able to accommodate with the new reimbursement system. On the other hand, the hospitals where still decided to operate has to take the beds out of services which were unused.
