Question

To control rapidly rising medical costs from the 1960s to the early 1980s, federal and state governments used regulatory approaches. Which of these regulatory approaches was not used?

		Health planning legislation placed controls on hospital investment.
		Federal legislation prohibited the development of for-profit hospitals for five years.
		Many states used hospital rate regulation.
		Medicaid reduced payments to hospitals and physicians, and Medicare limited physician fee increases.

Answer 1

Federal legislation prohibited the development of for-profit hospitals for five years.
In 1960 -1980 there is a wage-price control program included community health planning criteria regulation of capital expenditure. It established rate-setting programs for many states. Applied quality review mechanism for medicare beneficiary. Medicare economic index to reduce the rate of Medicare payments for physician services.
During that time there was a lack of government control over the for-profit providers of controlling cost and increasing profits.