Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Medicare Value and Quality Act of
2003''.

SEC. 2. FINDINGS.

The House makes the following findings:
(1) The United States Government should reward physicians,
hospitals, and other health care providers that provide high-
quality, cost-effective health care to beneficiaries under the
medicare program.
(2) The Journal of the American Medical Association has
published quality indicators in an article entitled ''Quality
of Medical Care Delivered to Medicare Beneficiaries: A Profile
at State and National Levels''.
(3) The cost of health care is--
(A) reflected in the type and volume of physicians'
services and in physician ordering and prescribing
behavior; and
(B) reflected in the amount of the average payment
to hospitals under the medicare program for each
medicare beneficiary in each State.
(4) Physician and hospital practice patterns contribute to
the total cost and quality of care for each medicare
beneficiary in each State.
(5) The original medicare fee-for-service program under
parts A and B of title XVIII of the Social Security Act does
not include a mechanism to pay for interventions designed to
improve quality of care.

SEC. 3. TO ENCOURAGE THE PROVISION OF HIGH-QUALITY, COST-EFFECTIVE
INPATIENT HOSPITAL SERVICES.

(a) Purpose.--The purpose under this section is to encourage the
provision of high-quality, cost-effective health care to beneficiaries
under the medicare program under title XVIII of the Social Security Act
(42 U.S.C. 1395 et seq.) by providing incentive payments to hospitals
located in States in which high-quality and cost-effective services are
being provided in order to finance further quality improvements.
(b) Intent.--It is the intent of Congress to provide incentives for
States to deliver high quality health care and to create incentives
that assure medicare recognizes value in the products and services that
the program purchases on behalf of medicare beneficiaries.
(c) Mechanism.--
(1) Establishment.--Not later than 6 months after the date
of enactment of this Act, the Secretary shall establish a
mechanism under which--
(A) the Secretary provides economic incentives to
providers of inpatient hospital services that deliver
high-quality health care at low costs in accordance
with the methodology established by the Agency for
Healthcare Research and Quality under paragraph (2)
with a 5 percent add-on bonus payment to providers of
inpatient hospital services within the top ten
performing States; and
(B) the Secretary necessarily recognizes and
includes measurements that factor both the quality of
care delivered in a medicare purchasing region or in
the event that purchasing regions are not developed,
then in a State, to medicare beneficiaries and
consumption of resources, including but not limited to
labor, technology, capital infrastructure and
pharmaceuticals in the delivery of services to medicare
beneficiaries under the medicare program under title
XVIII of the Social Security Act.
(2) Value and quality ranking methodology.--
(A) In general.--The Agency for Healthcare Research
and Quality shall establish a value and quality ranking
methodology under which the Secretary awards bonus
payments to providers of inpatient hospital services
located in those States that demonstrate that such
providers in the State are providing high value because
of the high-quality, cost-effective health care
services being provided to medicare beneficiaries.
(B) Basis.--The methodology established under
subparagraph (A) shall be based on the rank and
performance on medicare quality indicators published
annually in the Journal of the American Medical
Association (JAMA) that uses Medicare's current quality
of care measures. Cost rankings will be based on the
Centers for Medicare and Medicaid Services (CMS) annual
report ranking States based on average Medicare
spending per recipient for each State.
(d) Definitions.--In this section:
(1) Provider of inpatient hospital services.--The term
''provider of inpatient hospital services'' means any
individual or entity that receives payment under the medicare
program under title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.) for providing an inpatient hospital service (as
defined in section 1861(b) of such Act (42 U.S.C. 1395x(b))).
(2) Secretary.--The term ''Secretary'' means the Secretary
of Health and Human Services.
Output:
Medicare Value and Quality Act of 2003 - Directs the Secretary of Health and Human Services to establish a mechanism for providing economic incentives to providers of inpatient hospital services that deliver high-quality health care at low costs to encourage the provision of high-quality cost-effective health care to beneficiaries under the Medicare program under title XVIII of the Social Security Act. Requires the Agency for Healthcare Research and Quality to establish a value and quality ranking methodology for the award of bonus payments to such providers.