PPS Challenges in Postacute Care

Abstract

The challenges the prospective payment system (PPS) pose to managers in postacute care are enormous. Managers need to learn not only how to prepare their facilities and staff for PPS but also, and more important, how to provide the leadership to carry out a strategic plan for survival. In effect, this new reimbursement system, based on 44 resource utilization groups (RUGS III)--each with a distinct payment level--will necessitate a reexamination of managerial competencies.