[Congressional Record Volume 144, Number 51 (Thursday, April 30, 1998)]
[Extensions of Remarks]
[Page E721]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  MEDICARE PSYCHIATRIC HOSPITAL PROSPECTIVE PAYMENT SYSTEM ACT OF 1998

                                 ______
                                 

                        HON. BENJAMIN L. CARDIN

                              of maryland

                    in the house of representatives

                        Thursday, April 30, 1998

  Mr. CARDIN. Mr. Speaker, today I am pleased to join my colleague Jim 
McCrery in introducing the Medicare Psychiatric Facility Payment Reform 
Act of 1998. This legislation would improve care provided to Medicare 
beneficiaries by reforming how Medicare pays for services in free-
standing psychiatric hospitals and distinct-part psychiatric units of 
general hospitals. Our bill proposes to move psychiatric facilities to 
a prospective payment system (PPS) while phasing in substantial 
reductions in payments to these providers as required by the Balanced 
Budget Act (BBA) of 1997. Currently psychiatric hospitals and units are 
exempt from PPS and their costs are reimbursed under provisions in the 
1982 Tax Equity and Fiscal Responsibility Act, or TEFRA.
  Because last year's cuts were so deep and sudden, with no transition 
period to allow psychiatric facilities to adapt to the changes, I am 
concerned that patient care will be jeopardized. Clearly something 
needs to be done. Our proposal provides a workable solution. It joins 
psychiatric facilities with other providers in the Medicare program 
that are paid on a prospective basis, a reimbursement system that will 
be more efficient, allow for better planning, and lead to improved 
patient care. Our bill also ensures that, in the interim, inpatient 
psychiatric care is not compromised or disrupted because of precipitous 
budget reductions.
  I urge my colleagues to join me in co-sponsoring this important piece 
of legislation.

                          ____________________