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![handle is hein.gao/gaobaaxpq0001 and id is 1 raw text is:
DOCUMEZNT REISUME
00541 - [ B2027058 ]
Proiems in Administration of Two Health Giant Projects in
Reqion VIII. HBD-78-61; B-164031(5). July 20, 1978. 36 pp. + 2
appendices (4 pp,).
Peport to Sen. Edward M. Kennedy, Chairman, Senate committee on
duman Resources: health and Scientific Research Subcommittee; by
Elmer B. Staats, Comptroller General
Issue Area: Health Programs: Health ifaint. Organizaticns
Co Aliance with Law (1214). their liability as Alternative
to fee-for-service mode of Producing Care
Contact: Human Resources Div.
Budqet Function: Health: Health Care services (551).
Organization Concerned: Department of Health, Educaticn, and
Welfare.
Corqression&) Relevance: Senate Committee cn Human Resources:
Health id Scientific Research Sukcommitte.e Sen. Edward M.
Kennedy.
Authority: Public Health Service Act (42 U.S.C. 242(ti; 142
U.S.C. 246; 42 U.S.C. 299(j)). Economic Op;ortunity Act of
1964 (,42 U.S.C. 222(a)). Health Maintemance Organization Act
of 1973 (42 U.S.C. 300e). Social Security Act. P-164031(2)
(1974).
The actions of the Department ef Bealth, Educaticn, and
Welfare (HEW) in reqion VIII were revieued concerning: (1) use
of Federal funds for construction of a medical facility by the
Neiqhborhood ifealth Center in Salt Lake City, Utah; and (2)
accountability for Federal grant funds atarded to Sbtetwatez
Health Services, Inc., in Rock Springs, Uycming. The
Neiqhborhood health Center is currently teing used ty a
federally qualitied health maintenance organi2ation (HMC), and
Sweetwater Health Services was an HMO projqc. that has teen
terminated. The review was prompted by allegations cf
mismanaqement of the HMO program in region VIII, conflicts of
interest involvinq federal employees, and Ecssikle
misappropriation of Federal funds. Findings/Ccnclusions: EEwIs
manaqement decisicns c-.ncerning grants to the Meigbtcrhccd
Health Center from 1971 through 1977 bere conflicting, unclear,
and untimely with reqard to interpretation and application ot
Federal requlations and policies concerning grant ccrditions and
qrant-related income, departmental Eclicy governing
construction, and clarification of tke 1ederal interest In a
medical facility constructed for the beighbcrhcod Health Center.
Reqion VIII manaqement allowed the center tc collect furds fro&
several proqram sources intended to pay medical care expenses of
low-income consumers and to place thcee funds in a contingency
reserve fund to construct a medical facility. Itese acticna were
contrary to HEW policy. Public Health Service keadquartetrs
officials ratified the region's dscisicn without determining
whether they complied with special grant conditions. The region](ViewImageLocal?handle=hein.gao/gaobaaxpq0001&div=1&collection=&method=preview&ext=.png&size=3)