What change was made to Medicare payment methods for physicians in the early 1990s?

In the early 1990s, Medicare payment methods for physicians transitioned from a reimbursement model based on the dollar amount of charges to one that was structured around payment per service provided. This shift was part of broader efforts to control healthcare costs and enhance the efficiency of Medicare spending. By moving to a payment per service approach, Medicare aimed to standardize payments and reduce the variability often associated with providers charging different amounts for similar services.

This transition also intended to create a more predictable reimbursement process for providers, while encouraging the delivery of necessary care without significantly impacting the overall costs to the Medicare program. This change marked a significant move towards a more structured payment system, reflecting ongoing efforts to manage healthcare expenditures effectively.

In contrast, the other payment methods listed, such as an all-inclusive payment rate or elimination of outpatient services, do not accurately capture the nature of the change that took place during that period. The focus was not on revamping outpatient services or implementing a single rate but rather on strengthening the association between services rendered and payments received.