This information is for reference purposes only. It was current when produced and may now be outdated. Archive material is no longer maintained, and some links may not work. Persons with disabilities having difficulty accessing this information should contact us at: https://info.ahrq.gov. Let us know the nature of the problem, the Web address of what you want, and your contact information.
Please go to www.ahrq.gov for current information.
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.
Previous Slide Contents Next Slide 
5600 Fishers Lane Rockville, MD 20857