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HRD-84-32 1 (1984-02-13)

handle is hein.gao/gaobabngg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 HUMAN RI@JO.C G FEBRUARY 13, 1984 B-211058 The Honorable David A. Stockman Director, Office of Management 123381 and Budget Dear Mr. Stockman: Subject: Timely Establishment of Medical Care Recovery Rates Could Increase Recoveries (GAO/HRD-84-32) This report summarizes the results of our review of the Office of Management and Budget's (OMB's) role in the establish- ment of the Veterans Administration's (VA's) medical care recov- ery rates. It shows that medical care recoveries have been reduced by millions of dollars byodelays in updating recovery rates to reflect increases in the cost of providing medical care. Also enclosed is a copy of our report to the Administrator of Veterans Affairs (GAO/HRD-84-31, Feb. 13, 1984) on improve- ments needed in the methods used to establish medical care recov- ery rates that were identified during our review. The report shows that VA could increase medical care recoveries while pro- viding a more equitable basis for billings by establishing in- dividual facility rather than national rates and by setting separate rates for acute and nonacute care. VA and OMB program officials agreed with our findings, conclusions, and recommenda- tions. Their views have been incorporated where appropriate. Although our review was limited to the advantages to the government of VA using individual hospital billing rates, we believe our recommendations to VA may also be applicable to the Department of Defense (DOD) and the Department of Health and Human Services (HHS). We would appreciate being informed of any actions you take on the matters discussed in the report. BACKGROUND VA is authorized to recover the reasonable value of medi- cal services provided to certain patients provided care at VA facilities. Specifically: (401929) 1,j,)-39/

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