Slide Presentation from the AHRQ 2007 Annual Conference

Background: Payment Policy Changes Balanced Budget Act of 1997 (cont.)

• The BBA sharply reduced inpatient payments, to be phased in during 1998-2002.
• Implemented prospective payment methods for:
  • Hospital outpatient care
  • Other ambulatory care services
  • Skilled nursing care
  • Home health care
• Reduced payments to hospitals serving disproportionate shares of Medicaid and nonpaying patients.
• BBRA and BIPA restored about $48 billion in proposed cuts.