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117527 1 (1979-06-29)

handle is hein.gao/gaobacxuc0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 /0 HUMAN RESOURCES DIVISION June 29, 1979 117527 Mr. Leonard Shaeffer Administrator, Health Care Financing Administration Department of Health, Education and Welfare Washington, D.C. Dear Mr. Schaeffer: We recently completed a study of the Medicare and Medi- caid billing systems currently in use at the Los Angeles County/University of Southern California Medical Center. This medical center was chosen as the focal point in our study because of its high volume of Medicare and Medicaid patients and its large expenditures for processing claims under these programs. Based on our study, we estimate that a substantial reduction in billing system costs could be achieved and passed on to the State and Federal Governments through the inter- change of machine readable billing data and remittance advice between the Medical Center and the Medicare and Medicaid claims paying agents. Furthermore, we believe similar auto- mation techniques would prove cost effective for many large health care providers throughout the Nation, and could col- lectively represent a worthwhile savings in the administra- tive costs incurred in submitting and processing claims under the Medicare and Medicaid programs. Implementation of machine readable data exchange would reduce administration costs paid under the Medicare and Medi- caid programs because --providers could eliminate many clerical tasks asso- ciated with producing hard-copy billing documents and manually posting remittances to patient accounts; and --State claims paying agents could decrease their data entry costs by reducing the need for manual entry of claim data to the processing system.

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