Preparing for Medicare outpatient payment reform.

Orthopedic hospitals, institutions with a high volume of surgeries, and hospitals with high Medicare populations should learn from the experiences of eye and ear hospitals, some of which could have been put out of business by Medicare outpatient payment reforms proposed in 1986 and partially implemented since then. As the reforms are refined, hospitals should analyze their vulnerability to the proposed changes using the matrix proposed in this article. They should also take steps to counter any negative impact on revenues and try to influence the nature and scope of the reforms.