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1. Today's method of reimbursement has an immediate and significant effect on the services hospitals provide. The present Prospective Payment System, however, presently does not address the issues associated with capital equipment or the introduction of new technologies or procedures. 2. After a generation of emphasis on access to and quality of care, present legislation emphasizes cost containment. 3. Further definition and modification of the PPS reimbursement progrm is expected, with all segment of the health care delivery network affected.