Page images
PDF
EPUB

Y 4. In 8*:95-31

HOSPITAL COST CONTAINMENT ACT OF 1977

HEARING

BEFORE THE

SUBCOMMITTEE ON

HEALTH AND THE ENVIRONMENT

OF THE

COMMITTEE ON

INTERSTATE AND FOREIGN COMMERCE
HOUSE OF REPRESENTATIVES

NINETY-FIFTH CONGRESS

FIRST SESSION

ON

H.R. 8121 and H.R. 6575

BILLS TO ESTABLISH A TRANSITIONAL SYSTEM OF HOSPI-
TAL COST CONTAINMENT BY PROVIDING FOR INCENTIVES
AND RESTRAINTS TO CONTAIN THE RATE OF INCREASE IN
HOSPITAL REVENUES, TO ESTABLISH A SYSTEM OF CAPITAL
ALLOCATION DESIGNED TO ENCOURAGE COMMUNITIES TO
AVOID THE CREATION OF UNNEEDED AND DUPLICATIVE
HOSPITAL FACILITIES AND SERVICES, TO PROVIDE FOR
THE PUBLICATION AND DISCLOSURE OF INFORMATION
USEFUL TO THE PUBLIC IN MAKING DECISIONS ABOUT
HEALTH CARE, TO PROVIDE FOR THE DEVELOPMENT OF
PERMANENT REFORMS IN HOSPITAL REIMBURSEMENT
DESIGNED TO PROVIDE INCENTIVES FOR THE EFFICIENT
AND EFFECTIVE USE OF HOSPITAL RESOURCES, AND FOR
OTHER PURPOSES

95-756 O

JULY 18, 1977

Serial No. 95 FORD

Printed for the use of the

Committee on Interstate and Foreign Commerce

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1977

UNIV

ERSITY

1977

OCUMENT

EPARTMEN

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

HARLEY O. STAGGERS, West Virginia, Chairman

JOHN E. MOSS, California
JOHN D. DINGELL, Michigan
PAUL G. ROGERS, Florida

LIONEL VAN DEERLIN, California
FRED B. ROONEY, Pennsylvania
JOHN M. MURPHY, New York
DAVID E. SATTERFIELD III, Virginia
BOB ECKHARDT, Texas

RICHARDSON PREYER, North Carolina
CHARLES J. CARNEY, Ohio
RALPH H. METCALFE, Illinois
JAMES H. SCHEUER, New York
RICHARD L. OTTINGER, New York
HENRY A. WAXMAN, California
ROBERT (BOB) KRUEGER, Texas
TIMOTHY E. WIRTH, Colorado

PHILIP R. SHARP, Indiana

JAMES J. FLORIO, New Jersey

ANTHONY TOBY MOFFETT, Connecticut

JIM SANTINI, Nevada

ANDREW MAGUIRE, New Jersey

MARTY RUSSO, Illinois

EDWARD J. MARKEY, Massachusetts

THOMAS A. LUKEN, Ohio

DOUG WALGREN, Pennsylvania

BOB GAMMAGE, Texas

ALBERT GORE, JR., Tennessee

BARBARA A. MIKULSKI, Maryland

SAMUEL L. DEVINE, Ohio

JAMES T. BROYHILL, North Carolina
TIM LEE CARTER, Kentucky
CLARENCE J. BROWN, Ohio
JOE SKUBITZ, Kansas
JAMES M. COLLINS, Texas
LOUIS FREY, JB., Florida
NORMAN F. LENT, New York
EDWARD R. MADIGAN, Illinois
CARLOS J. MOORHEAD, California
MATTHEW J. RINALDO, New Jersey
W. HENSON MOORE, Louisiana
DAVE STOCKMAN, Michigan
MARC L. MARKS, Pennsylvania

[blocks in formation]

SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT
PAUL G. ROGERS, Florida, Chairman

[blocks in formation]

CONTENTS

[blocks in formation]

HOSPITAL COST CONTAINMENT ACT OF 1977

MONDAY, JULY 18, 1977

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT,

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C.

The subcomittee met, pursuant to notice, at 9:00 a.m., in Room 2123, Rayburn House Office Building, Hon. Paul G. Rogers (chairman of the subcommittee) presiding.

Mr. ROGERS. The subcommittee will come to order, please.

The hearing this morning is to receive testimony on three new proposals which were introduced by me in H.R. 8121 on June 30. I offered these proposals to stimulate debate and further consideration of two very important issues which I belive must be addressed by any hospital cost containment program.

First, hospitals must be encouraged by a cost containment program to perform efficiently and responsibly. With proper incentives, I can foresee our hospital system providing high quality care to all our citizens with the latest available technology, but I see it free of surplus beds and equipment and free of overlapping and duplicative services.

Second, our health planning system must be enabled to more effectively limit the introduction of new facilities and equipment. Many of these new services are not adding to our ability to care for the ill, but are only duplicating existing services at high cost.

I believe that the three new proposals in H.R. 8121, as well as all others which seek to contain recent increases in hospital costs, must be subjected to the closest scrutiny. The issues involved are many and complex.

I believe Dr. Carter has a statement he would like to present. Dr. Carter?

Mr. CARTER. Mr. Chairman, proposals to contain the dramatic increases in hospital costs have been a topic of much discussion in the Congress in recent months. As a physician and as ranking minority member of the House Subcommittee on Health and the Environment, I too have become increasingly concerned about this problem. I have listened carefully to the methods proposed to solve it, including the legislation advanced by the administration, H.R. 6575. Although I share the administration's desire for timely action to remedy the problem of escalating hospital costs, I feel that the

(1)

« PreviousContinue »