Outpatient payment reform: the next budget-cutting target

Medicare Part A and physician fees are still the top concern of congressional budget cutters. But outpatient hospital payments are rapidly moving up on the cost-containment agenda. Under FY 1990 budget reconciliation, outpatient Medicare capital payments were reduced for the first time, and President Bush's FY 1991 budget reportedly recommends a 10 percent across-the-board cut in Medicare hospital outpatient payments.