[Congressional Record Volume 145, Number 85 (Wednesday, June 16, 1999)]
[Extensions of Remarks]
[Page E1275]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INTRODUCTION OF THE OUTPATIENT PRESERVATION ACT

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                            HON. MARK FOLEY

                               of florida

                    in the house of representatives

                        Wednesday, June 16, 1999

  Mr. FOLEY. Mr. Speaker, I was (and still am) a proud supporter of the 
Balanced Budget Act and its attempts to bring about greater fiscal 
discipline to save Medicare from bankruptcy. However, when we passed 
this bill, we did so with the understanding that Medicare services to 
seniors would not be harmed.
  Sadly, the current form of the prospective payment system (PPS) for 
hospital outpatient services such as surgery, radiology, clinical 
services, emergency room care, chemotherapy, and psychotherapy makes 
drastic cuts in payments so that many hospitals may be forced to limit 
or discontinue outpatient services that patients depend on. Initial 
projections show that when the PPS is fully implemented, some hospitals 
stand to lose between 40 and 50 percent of their revenue. This could 
have a devastating effect on the availability of certain services. For 
many individuals, outpatient care is a safer, more convenient, and less 
costly alternative to being admitted overnight to a hospital for a 
minor procedure. I do not want to see patients' choice of health 
services and care settings limited.
  Today, I am introducing the Hospital Outpatient Preservation Act. 
This legislation will put a limit on the Medicare payment reductions 
hospitals receive under the outpatient PPS for the first three years it 
is in place. This bill will allow hospitals to gradually reorganize 
their budgets and operational structures in order to smoothly 
transition to the new payment system without having to eliminate 
services. It is my intention that this bill will preserve the intent of 
the Balanced Budget Act to enforce fiscal responsibility in the 
Medicare system, while preventing any negative consequences that 
drastic revenue reductions would have on hospitals and their patients.

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