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Charles Marwick

JAMA. 1999;281:1781-1782.

	Since this article does not have an abstract, we have provided the first 150 words of the full text and any section headings.

Washington—In its zeal to reduce Medicare spending by passing the Balanced Budget Act (BBA) of 1997 last year, Congress has threatened the long-term financial stability of US teaching hospitals, says the Association of American Medical Colleges (AAMC). The act is intended to cut Medicare spending by phased-in reductions in payments to all hospitals until 2002.

But, according to a recently completed AAMC analysis, when the act is fully implemented the results will have a "pronounced negative effect on the education and service missions of teaching hospitals," said Jordan Cohen, MD, the AAMC's president. The magnitude of the cuts the act will produce is some $88 billion over the original estimates, he said, and "this exceeds what Congress had intended."

The BBA makes numerous changes in hospital payments under the Medicare program. Among those that particularly affect teaching hospitals are phased-in reductions in payments for direct and indirect . . . [Full Text of this Article]

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