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HRD-78-93 1 (1978-04-07)

handle is hein.gao/gaobaaxcd0001 and id is 1 raw text is: 

                          DOCUMENT RESURE
 05701 - (81045980I 1  3 kA~er
 Development, Funding, and Cperations of Kiski Valley medical
 Facilities, Inc., North Apnllo, Pa.  BEC-78-93; E-164C31(5).
 April 7, 19Ul. 2 pp. + enclosure (15 FF.).

 Beport to Rep. John P. Murth& ; by Greaor7 J. Ahart, Director,
 Human Resources Div.
 Issue Area: Health Programs: Health Pacilities (1203); Health
     Programs: Fraud and Abuse In the Fluanciny Program (1206).
Contact: General Government Div.
Budget Function: Health: Health Care Services (551); Health:
     General Health ri7nancing Aeslstacce (5551.
organization Concerned: Department of Health, Iducation, and
     Welfa-e; Appalachian Regiobal Commission; Armstrong County,
     PA; Kiski Valley Medical Facilities, Inc.
Conqressional Relevance: Rep. Jo-.'- P. Murtha.
Authority: Appalachian Regignal DevGiopment Act.

         The Commissioners of Armstrcng County, Pennsylvania,
received complaints concerning Federal funds used in developirag
and equippinq Kiski4 Valley Medical facilities, Inc. The
complaints alleqed that: there was a conflict of interest
regarding the selection and acquisition of the facility b-'te,
area demographic data were misrepressnt-d in applications for
Federal funds, and there is not a need fcr the facility. An
audit revealed no evidence to support the conflict of interest
and data misrepresentation allegations. howevir, although
additional medical services were needed in the Siski Valley, the
size of the facility is beyond the needs of the area. The
anticipated patient load has not materialized and, as a result,
the facility is experiencing financial difficulties. The
facility will probabl; continue to have difficulty in achieving
self-sufficiency. (RRS 1

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