Prospective Payment: Implications for Medical Technology

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Abstract
The article by Vladeck (1) in this issue is as lucid an overview of the theory and practice of prospective payment as can be found. As Vladeck suggests, per-case payment based on diagnosis-related groups (DRGs) will have profound and wide-ranging implications for the practice of medicine and for the interrelations of all components of the health care system, especially physicians and hospitals. One of the most intriguing sets of implications is how medical technology of all sorts, from hardware to drugs to procedures, will be developed and applied. A most commendable discussion of the issues involved is the Congressional Office

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