The Cabinet for Health and Family Services shall review all medical assistance reimbursement systems for appropriateness and cost-effectiveness. The review shall include:
(1) Review of cost-based reimbursement policies for hospitals and nursing homes to determine the effectiveness and appropriateness of alternate systems. Consideration shall be given to the use of modified diagnostic-related groups and resource utilization groups systems, using capitated payment methods; and (2) Review of reimbursement rates for physicians to determine whether savings or cost containment would be better achieved through using a relative-based resource value scale system, a capitated payment method, or other alternative methods of reimbursement; and (3) For all Medicaid-covered long-term-care services, implementation of a standardized patient assessment tool and consistent quality-of-care mandates.