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Agency for Healthcare Research and Quality (AHRQ) FY08 Appropriations

Summer 2007

RECOMMENDATION
We recommend an appropriation for the Agency for Healthcare Research and Quality of at least $350 million, an increase of $31 million above the FY 2007 level and $20 million above the President’s FY 2008 budget request.
Agency for Healthcare Research and Quality Mission
The Agency for Healthcare Research and Quality (AHRQ) is charged with improving the quality, safety, efficiency, and effectiveness of health care for all Americans. At a time when Americans are increasingly concerned about rising medical costs and calling for a national approach health care reform, AHRQ is in a unique position to support research to inform policies affecting cost and coverage and to improve medical decision-making and clinical care. AHRQ must have additional resources in order to pursue this vital research.

Comparative Clinical Effectiveness Research

According to the National Health Statistics Group of the Centers for Medicare and Medicaid Services, health care spending will double to $4.1 trillion and account for 20 percent of every dollar spent by 2016. Our nation must invest in the study of health care practice in order to improve outcomes and minimize unnecessary costs. One important tool to accomplish this is AHRQ’s analysis of clinical effectiveness and appropriateness of health services and treatments. A stronger investment in this practical research, which will improve federal programs such as Medicare, Medicaid and SCHIP, as well as privately-financed health care, is needed.

Health Information Technology

In addition to AHRQ’s charge to evaluate the cost effectiveness of health care practice, the agency is engaged in the effort to advance the Secretary’s Personalized Health Care Initiative. The initial work by AHRQ to facilitate the adoption of health information technology will improve patient safety by reducing medical errors and avoiding costly duplication of services. It is vital that AHRQ, as the lead federal agency, have the necessary resources to promote standards for portability and interoperability that ensure health data is appropriately available and privacy-protected.

Institute of Medicine Recommends $1 Billion for AHRQ

The Institute of Medicine’s report, Crossing the Quality Chasm: A New Health System for the 21st Century (2001) recommended $1 billion for AHRQ to “develop strategies, goals, and action plans for achieving substantial improvements in quality in the next 5 years…” The report looked at redesigning health care delivery in the United States. Only with a credible investment in AHRQ can we hope to determine how to structure a system that can deliver quality health care to all Americans in the 21st Century.
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