Implications of the Balanced Budget Act of 1997

The sweeping and challenging changes in the health care industry emanating from the Balanced Budget Act of 1997 have exceeded those experienced by health care providers and consumers under the Tax Equity and Fiscal Responsibility Act of 1982, the Diagnosis Related Groupings in 1984, and the Resource-Based Relative Value Scale in 1992. To understand and cope with these changes, the financial impact of the Balanced Budget Act is examined in depth, particularly in terms of reimbursement or funding for all health care settings, providers, and medical education. The dramatic changes in the health care delivery process that have caused havoc and turmoil also are examined. For survival and growth under the Balanced Budget Act, reengineering strategies are presented. The ethical and social responsibilities that underlie the current and future impact of the Balanced Budget Act are analyzed to foster the principles of justice, fairness, and best interests of the public.