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HRD-85-14 1 (1985-02-01)

handle is hein.gao/gaobabexe0001 and id is 1 raw text is: 





BY THE US. GENERAL ACCOUNTING OFFICE



Report To The Secretary Of

Health And Human Services








Changes Needed In Medicare Payments

To Physicians Under The

End Stage Renal Disease Program


Since July 1973, the Medicare program has covered the cost of treating
individuals with end stage renal disease. Total program costs have increased
from about $229 million in 1974 to more than $1.8 billion in 1983.

Renal physicians receive a monthly capitation payment for the routine
outpatient care they provide to dialysis patients. The formula used to compute
the monthly payment overstates physicians' involvement with home dialysis
patients when compared with facility patients, resulting in higher monthly
rates and additional annual program costs of about $11.8 million.

Special dialysis procedure codes were established for inpatient hospital care,
including hospital dialysis visits. Medicare allowances for these visits are
considerably higher than those for regular hospital visits, even though the
services provided are essentially the same. GAO believes that use of these
special codes should be limited.

GAO also believes that a system which pays for outpatient care on the basis of
a monthly capitation payment and for inpatient care on a fee-for-service basis
is difficult to administer. Adopting a total capitation payment system covering
both routine inpatient and outpatient services would be easier to administer
and, based on 1981 data, could save about $1.6 million annually in the nine
states reviewed.






                                                                     1 26125



                                                                  GAO/HRD-85-14
    1Ccous;\O l1|  FEBRUARY 1, 1985

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