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GAO-10-773R 1 (2010-06-30)

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        Accountabilty I Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


          June 30, 2010

          The Honorable Edolphus Towns
          Chairman
          Committee on Oversight and Government Reform
          House of Representatives

          Subject: Hurricane Katrina: CMS and HRSA Assistance to Sustain Primary Care Gains in
                   the Greater New Orleans Area

          Dear Chairman Towns,

          More than 4 years after Hurricane Katrina made landfall, the greater New Orleans area
          continues to face challenges restoring health care services disrupted by the storm and
          flooding that followed. Among many federal investments to help rebuild health care services
          in the area, in July 2007, the U.S. Department of Health and Human Services (HHS) awarded
          the $100-million Primary Care Access and Stabilization Grant (PCASG)' to the Louisiana
          Department of Health and Hospitals (LDHH). The PCASG was intended to restore and
          expand access to primary care services in the greater New Orleans area2 without regard to a
          patient's ability to pay. The grant provided short-term funding to outpatient provider
          organizations to help them take such actions as increasing staff, renovating clinics, and
          opening new clinic sites. Like many hurricane relief programs, the PCASG was designed to
          provide a temporary funding source-from July 23, 2007, through September 30, 2010.

          The PCASG grant is administered at the federal level by HHS's Centers for Medicare &
          Medicaid Services (CMS). The Louisiana Public Health Institute (LPHI) administers the
          PCASG for LDHH as its local partner;3 LDHH and LPHI received a small portion of the
          PCASG funds for their administrative and oversight costs. In 2007, LDHH provided grant
          funds to 25 provider organizations, which we refer to as PCASG-funded providers.4 For a

          'This grant was made under a provision of the Deficit Reduction Act of 2005 authorizing payments to
          restore access to health care in communities affected by Hurricane Katrina. Pub. L. No. 109-171,
          § 6201(a)(4), 120 Stat. 4, 133 (2006). Notice of Single Source Grant Award, 72 Fed. Reg. 51, 230 (Sept. 6,
          2007).
          2For the purposes of the grant, the greater New Orleans area was defined as Jefferson, Orleans,
          Plaquemines, and St. Bernard parishes. The PCASG aimed to restore and expand access for primary
          care, dental care, and mental health services, and to decrease costly reliance on emergency room use
          for primary care services for patients who were uninsured, underinsured, or covered by Medicaid (the
          joint federal-state program that finances health insurance coverage for certain categories of low-
          income adults and children).
          3LPHI is an independent, nonprofit, New Orleans-based organization focused on promoting and
          improving health and quality of life in Louisiana. As LDHH's local partner for administering the
          PCASG, LPHI is responsible for the day-to-day administration of the PCASG.
          4As of March 2010, these PCASG-funded providers were operating 93 sites that were eligible to use the
          funds.


GAO-10-773R Sustaining New Orleans Primary Care Gains

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