The Decline of State-Based Hospital Rate Setting: Findings and Implications

This paper summarizes the results of a conference in Albany, New York in November 1994 that brought together representatives from the four current and former “all payer” rate setting states of Maryland, Massachusetts, New Jersey and New York.

State-based prospective hospital rate setting has declined from its former position as “the center of the policy paradigm for controlling health care costs” that it held in the 1970s. In 1980, about 30 states had some form of payer or budget regulation of hospitals; today, only six maintain any form of mandatory rate setting or budget controls: Florida, Maine, Maryland, New York, Rhode Island, West Virginia; Arizona and Vermont maintain voluntary systems. 1.3 MB


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