Clear federal strategy is emerging for cost control.

The author states that the purpose of governmental cost containment initiatives is to gain control over hospital capital expenditures, utilization, payment and quality assurance. He suggests that the costs of hospital operation should be completely re-examined stating that the reform of the hospital payment system is emerging as the energizing factor which will stimulate proper allocation of capital resources and effective utilization and quality assurance. O'Hare outlines the potential of the federal strategy. Recent legislation (PL 93-641 and PL 95-142) has mandated that hospital financial and statistical data be made available to federal agencies. He concludes that a dominant federal role in cost containment strategy threatens to abolish individual differences between institutions and their ability to be responsive to local needs. The author urges hospital leadership to take a more active position in implementing a cost containment strategy.