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PAD-80-17 1 (1980-05-06)

handle is hein.gao/gaobabanv0001 and id is 1 raw text is: 


BY THE COMPTROLLER GENERAL    J



Report To The Congress

OF THE UNITED STATES


Health Maintenance Organizations

Can Help Control Health Care Costs



GAO's analysis of the economic perform-
ance of federally qualified group practice and
staff model health maintenance organizations
(HMOs) indicated that:

     --They were taking into consideration
     the relative costs of providing serv-
     ices when deciding whether to use
     medical staffs, ambulatory health cen-
     ters, and/or hospitals. Because the
     costs of these services are not affected
     by third party payments, HMOs should
     be able to allocate these resources effi-
     ciently and help control health care
     costs.


--There are significant economies of scale
in providing comprehensive prepaid
care. If the HMOs studied continue to
grow, the per unit cost of care will
fall. However, sufficient demand and
good management are prerequisites for
these HMOs to achieve lowest per unit
cost.

--With increased time in operation these
HMOs, on the average, are experiencing
increases in the real cost of providing
care.


112291


  PAD-80-17
MAY 6, 1980


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