Health Services Cost Review Commission

Hospital rate regulation in Maryland was established by an act of the Maryland legislature in 1971. The law created the Health Services Cost Review Commission (HSCRC), an independent State agency with seven Commissioners appointed by the Governor.

The law was strongly supported by the hospital industry. The HSCRC was given broad responsibility regarding the public disclosure of hospital data and operating performance and was authorized to establish hospital rates to promote cost containment, access to care, equity, financial stability and hospital accountability.

The HSCRC has set rates for all payers, including Medicare and Medicaid, since 1977 and has largely achieved the key policy objectives established by the Maryland legislature. In recent years, the HSCRC has devoted considerable resources toward the development and implementation of payment-related initiatives designed to promote the overall quality of care in Maryland hospitals.

Maryland remains the only state to retain such a system. The market for health care services in the United States has failed to produce results consistent with the Maryland legislature’s founding goals. The Maryland system shows that a “macro-oriented” approach to regulation, which seeks to correct only for the most obvious market failures, can assist policy-makers in controlling cost growth and, at the same time, enhancing access to care.

Maryland's All-Payer Hospital System Modernization is another new, unique, and innovative model that was approved by the Centers for Medicare and Medicaid Services (CMS) on January 10, 2014.

Governor's Office

Quick Links
  Commission Meetings  
  Modernization Workgroups:  
  Payment Models  
  Total Cost of Care  
  Performance Measurement  
  Consumer Standing Advisory  
  Modernization Info:  
  Care Redesign  
  Advisory Council  
  CMS Presentation  
  Primary Care Model  
  Regional Partnerships  
  Population Health Workforce  
  Transformation Infrastructure  
  DHMH-HSCRC Duals Care Delivery  
  Data Request Forms
  Quality Improvement  
  Accounting and Budget Manual