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Weill Cornell MedicineA History of Cornell's Medical School$
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Antonio M. Jr., MD Gotto and Jennifer Moon

Print publication date: 2016

Print ISBN-13: 9781501702136

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9781501702136.001.0001

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Discord and Disrepair

Discord and Disrepair

(p.167) 8 Discord and Disrepair
Weill Cornell Medicine

Antonio M. Gotto

Jennifer Moon

Cornell University Press

This chapter looks at how the federal government and private insurers began setting limits on the amount of money they were willing to pay for medical care. Under legislation enacted in 1983, hospitals began receiving a set fee for Medicare patients based on their diagnoses, regardless of how much it actually cost to treat them. Another challenging development was the rise of managed care. Under this system, third-party payers, such as employer-sponsored health insurance plans, attempted to reduce medical costs by limiting the number of hospitalizations and the use of specialists by member patients. These health care trends threatened New York Hospital, Cornell University Medical College, and by extension, Cornell University. As the New York Hospital–Cornell Medical Center struggled to handle these challenges throughout the 1980s, relations between the hospital and medical school continued to deteriorate.

Keywords:   federal government, private insurers, medical care, Medicare, managed care, New York Hospital, Cornell University Medical College

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