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Slide Presentation from the AHRQ 2007 Annual Conference

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

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  • 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.

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