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HRD-79-52 1 (1979-07-19)

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REPORT BY THE


Co troller General

OF THE UNITED STATES


      RESTRECT7D     ~-L t2c   tn r'clisr cutsdee the Genes'21
      Accocu,~               C~ th b j of Z.Peciflc approval
      13y th e Cf it i; u  o  C o n ig re s so n af R e la tio n s .

Problems With Evaluating The                                    LD

Cost Effectiveness Of Professional

Standards Review Organizations


Professional Standards Review Organizations
are designed to assure that health care services
provided under Medicare and Medicaid are
delivered as effectively, efficiently, and
economically as possible.

GAO reviewed nine estimates of cost savings
for Professional Standards Review Organiza-
tions totaling $21.4 million plus 67,000 pa-
tient days of care and found that they were
overstated by $16.7 million and 33,900 pa-
tient days of care, primarily because of defi-
ciencies in the data used. In addition, defi-
ciencies in the methods used make the re-
maining savings highly questionable.


Data the Department of Health, Education,
and Welfare used in its 1977 and 1978 evalua-
tions of Professional Standards Review Orga-
nizations included information on hospitals
that should not have been included and omit-
ted information that should have been in-
cluded. GAO reviewed 5 of the 18 Profession-
al Standards Review Organizations included in
the 1977 evaluation and was told by officials
at these organizations and at hospitals under
their review that a variety of factors caused
changes in hospital use.




   ZD S97




                                   1          5


        109975


                 HRD-79-52
              JULY 19, 1979
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