It would also limit payments to victims of medical malpractice and encourage doctors and hospitals to join together in selling their services to consumers.

"If Congress wishes to encourage nonprofit hospitals to provide charity care and other community services, it should consider revising the criteria for tax exemption."

This, it said, would encourage doctors and hospitals to report such incidents voluntarily.

The idea was to encourage hospitals to tame increasingly expensive hospital care.

One is that paying for performance might encourage doctors and hospitals to treat only patients likely to do well.

A second is to encourage hospitals with little experience in caring for AIDS to accept more such patients to improve the quality of their care.

But what has been missing is a national road map that would encourage doctors, hospitals and insurers to invest in modern information technology.

The Government will encourage doctors and hospitals to advertise their services.

Where fundholders had encouraged local hospitals to improve the services for their own patients, other patients attending the hospital also benefited.

The sponsors would encourage insurers, hospitals and doctors to compete for their business.