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105122 1 (1978-03-03)

handle is hein.gao/gaobadxxz0001 and id is 1 raw text is: 



DOCUMEN BT RESURE


05122 - rB06655511
Implementation of the Health maintenance Organization Act of
1973, as amended. a-188898. larch 3. 1978. 14 pp.
Testimony before tbi Senate Coaaitte;i cn Human ftsources: HealtU
and Scientific Besearch Subcomaittee; by Gregorr J. Ahart,
Director, Hquan Resources Div.

Contact: Human Resoarces Div.
Organization Concerned: Deprrtsent of Health, Education, and
     lelfa re.
Conqressional Relevance: Senate Comittee on Human esorrcvs:
    Health and Scientific Hesearch Subcommittee.
 Authority:  d87 Stat. 914; Health Haintemamni Organization act
    of 1973, as amended).   (90 Stat. 1945; Health Saintenauce
    Organization Amendments of 1976). S. 2534 195tii Cong.),
    Public HcaLth Service Act.

         The Health Maintenance Organmzaticn (510) Act of 1973
provi,ed fLr a Federal program to develop alternatives to the
traditional forms of health care delivery ani financing by
assisting and encouraging the establishment and expansion of
HMOs. Through December 31, ;977, the Department of Health,
Education, and Uelfare (HEM), had awarded $131.3 million in
grant and ioan assistance under the act to 1912 organizations,
and 2 additional organizations .eceived loan guarantes for S2.2.
million. As of the same date, there uere 51 federally qualified
H8Os. A review of 14 ffOs which had cbtained Federal financial
assistance under thi act indicated th-a e-ch of the 3HOs is
qenerally providing health services as required by the ect and
that each generally has been organized and operated according to
the acts provisions. Exceptions exist in the area of enrollment
of elderly. indigent, or medically high-risk people. One of the
HBOs reached its financial breakeven point during the quarter
ended Deceaber 1977. Six of the remaining 14 HBs have a poor
chance of breaking even within 5 years, and 6 have a fair to
qood chance of breaking even. So conclusian was reece4 about
the other HBO. Concern remains over HEis ability to issae
regulations and guidelines needed to implement the act and tc
organize the program effectively., HER has made a concerted
effort to issue regulations in a timely manner, but the agency
does not have the numbers and types of personnel needed to
implement the HBO program effectively. (RR3.

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