The method (philosophy) of hospital management in which hospitals try to control the costs for each kind of case so that the revenue for that case will cover the cost. Cost-per-case management is a new style of management which was developed when hospital revenue changed from reimbursement for services rendered to prospectively deter mined prices for various kinds of services. This change in reimbursement, in turn, came from the adoption of the prospective payment system (PPS) in the Medicare program. Previously, hospitals simply had to ensure that the aggregate of income covered the aggregate of costs.