Medicare case-mix index increase

Medicare paid hospitals a higher amount per admission in 1984 than had been planned because the case-mix index (CMI), which reflects the proportion of patients in high-weighted DRG's versus low-weighted ones, increased more than had been projected. This study estimated the degree to which the increase in the CMI from 1981 reflected medical practice changes, the aging of the Medicare inpatient population, changes in coding practices of physicians and hospitals, and changes in the way that the Health Care Financing Administration collects the data on case-mix. All of the above, except for aging, contributed to the increase in the CMI.