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DOCOENT RESUBE
06274 - f'B1726756]
GAO Reviews of the Profe3siona1 Standards Review Progran. June
15, 1978. 24 pp. + 2 enclosures (2 pp.).
Testimony before the Hcuse Committee cn Ways and Means:
Oversight Subcommittee; by Gregory J. Ahart, Director, Hunan
Resources Div.
Contact: Human Resources Div.
Orqanization Concerned: Department of Health, Iducation, and
Welfare; Heaith Care Financing Idministration: Redicare
Bureau.
Congressional V evance: House Committee on Ways and Beams:
Oversight Subcommittee.
Authority: Social Security kmendments of 1972 4P.L. 92-603).
Two reviews of the Professional Standards Review
Orqanizations (PSROs) program dealt %ith: (1) the validity of
claims made by PSR~s about cost savings and causes for edicare
utilization changes observed in the study by tbe 0lice of
Planning Evaluation and Legislaticn; and (2) staffing levels,
salaries, and policies for ebers of selected PS30s. Uhen GAO
recomputed savings reported in seven PSEOs studles, there were
wide discrepancies in the estimates. Several deficiencies mere
noted with respect to data used by P58Cs in their estimates,
parti-ulatly the use of incomplete data. Also, metacdolcgies
used in developing estimates were questicnable. Factors
influencing medicare utilization changes were changes in medical
services, medical practices, number and availability of
physicians, and the impact of nursirg home bed availability.
PSRO review was also cited as a factcr irfluencing wedicare
utilization. Savings in personnel costs cculd be realized by
establishment of salary ranges for executive directors and
medical directors which are comparable tc those in the
medicare/medicaid acd health planning adinistratica coamlex.
There are also opportunities to consolidate similar
administrative functions and to reduce administrative costs.
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