Table 1. Comparison of Basic Program Characteristics Among NHRS Primary Study Group States.

STATE/AREA	YEAR IMPLEMENTED	TYPE OF AGENCY	DATE AND NATURE OF MAJOR CHANGES	TYPE OF REVIEW
Arizona	1972	Department of Health and Health Systems Agencies	1976: uniform financial reporting implemented	Subjective review; few standardized guidelines and criteria; substantial negotiation; hearings
Connecticut	1974	independent Commission	1976: new methodology much more systematic; use of interhospital comparisons	Review with standardized guidelines and criteria; negotiation; hearings; detailed review by exception
Maryland	1974	Independent Commission	1976: rates for some hospitals set on basis of cost per case by diagnosis; 1977: Medicaid and Medicare added to program	Review with standardized guidelines and criteria; negotiation; hearings; automatic inflation adjustment unless hospital requests detailed review
Massachusetts	1974	Independent Commission	1975: prospective reimbursement introduced for commercially insured and uninsured; 1978: new methods for commercially insured and uninsured	Medicaid: totally formulary rate-setting; no hearing or negotiation; Charge-based Revenue: review with standardized guidelines and criteria; hearings; negotiation
Minnesota	1974	Hospital Association with Department of Health oversight	1977: review became mandatory for all hospitals; oversight by Department of Health begun	Subjective review; few standardized guidelines and criteria; negotiations; hearings
New Jersey	1969	Department of Health	1974: State took over operation from hospital association; 1976: new, very detailed and systematic review procedures begun	Review with standardized guidelines and criteria; negotiation; no hearings; detailed review by exception
New York	1970	Department of Health and Blue Cross	1976: disallowances, from inter-hospital comparisons, tightened; 1977: length of stay penalty adopted; 1978: charge rate controls begun	Blue Cross/Medicaid: totally formulary rate-setting; no hearing or negotiation; Charge-based Revenue: maximum percentage increase in charge rates
Western Pennsylvania	1971	Blue Cross	1973: hospitals could choose to have Medicare reimbursement controlled; 1976: new methods, Medicaid included	Subjective review; few standardized guidelines and criteria; negotiation; no hearings
Washington	1975	Independent Commission	1977: new methods; experiment with alternative payment mechanisms; Medicare and Medicaid included in program	Review with standardized guidelines and criteria; negotiation; hearings; detailed review by exception