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DOCUMENT RESUME
00508 - [L0751626]
Loss of Millions of Dollars in Revenue Because of Inadequate
Ciarges for Hedical Care. B-133142; FGMSD-76-102. March 8, 1977.
17 pp.
Report to the Congress; by Robert F. Keller, Acting Ccmptroller
General.
Issue Area: Accounting and Financial Reporting (1208); Health
Programs: ReimbursemGnt Policies and Utilization Controls
(2800).
Contact: Financial and General Management Studies Div.
Budget Function: Health: Health Care Services (051); National
Defense: Department of Defense - military (except
procurement & contracts) (551).
organization Concerned: Department of the Air Force; Department
of the Army; Department of the Navy; Department of Defense.
Congressional Relevance: Congress; House Committee on Armed
Services; Senate Committee on Arx!d Services.
Authority: (24 U.S.C. 34; P.L. 75-51). DOD Instruction 7230.7.
Executive Order 11116. Executive Order 11609. O.M.B.
Circular A-25.
A revi.es was conducted of pvlicies and proceduzes used
for determining and charging rates for medical care in military
medical facilities. Pertinent accouiiting 7cords and reports
were also reviewed. Findings/Conclusions: Persons other than
active and retired military personnel and their dependerts must
pay for the nedical care they get in military medical
facilities. The rates charged paying patients are so low that
about $12 million in medical costs are not recovered annually.
Computations of full reimbursement rates excluded many costs of
medical operations because of inconsistencies in accounting data
submitted by the military services to the Department of Defense
and because of the exclusion of certain costs by the Department
in computing the rates. Reimbursements could be increased by
about $3.2 million annually if full charge rates were increased
'Lo recover all costs of providing medical care, Reimbursements
could be increased another $8.7 million annually if the special
charges for U.S. civilians and foreign nationals and their
dependents working for the Government overseas were revised to
recover the costs of providing the medical care. Legislative
history indicates that the charges should be high enough to
recower costs, Recommendations: The Secretary of Defease should
provide the military services with specific guidance for
reporting accounting data so that complete and consistent costs
are used to computc reimbursement rates; establish procedures so
that all applicable costs are included in rate ccmputations; and
revise the rates periodically. Rates for inpatient and
outpatient metical care which are intended tc recover all ccsts
should be increased. (Author/SC)](ViewImageLocal?handle=hein.gao/gaobaabww0001&div=1&collection=&method=preview&ext=.png&size=3)