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HRD-80-35 1 (1980-01-21)

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BY THE COMPTROLLER GENERAL

Report To The Chairman, Subcommittee.%

On Health, Committee On Finance

United States Senate

OF THE UNITLD STATES




Hospitals In The Same Area

Often Pay Widely Different Prices

For Comparable Supply Items


GAO surveyed prices of supplies routinely
purchased by 37 hospitals in six cities and
found wide differences in prices paid for
similar items. The most frequent explanation
was that hospitals don't share price informa-
tion with each other.
Since Medicare and Medicaid payments to hos-
pitals include payments for these supplies,
HEW and its contract intermediaries can assist
hospitals to avoid paying excessive prices for
routine purchases. By compiling price informa-
tion and communicating it to hospitals, HEW
could assist them in controlling costs.









                                                  111392






                              0 H RO.80-35
   ir( )Ut' d~                                  JANUARY 21, 1980


      04 INr'

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