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HRD-81-62 1 (1981-06-10)

handle is hein.gao/gaobabbzy0001 and id is 1 raw text is: 





BY THE COMPTROLLER GENERAL



Report To The Congress

OF THE UNITED STATES


Cost Cutting Measures Possible If

Public Health Service Hospital System

Is Continued


GAO had completed its review of ways Public
Health Service medical care costs could be re-
duced before the President proposed legislative
action to discontinue eligibility of seamen to
receiye free medical care and terminate the
Service's hospital system.

The weaknesses GAO found in the Service's
hospital management system and its difficul-
ties with verification of seamen eligibility for
care should be of interest to the Congress in
deliberating the President's proposal. Prompt
enactment of the proposal would eliminate
the need for the actions GAO recommends
for reducing Service medical care costs.

If the hospital system is continued, the Con-
gress should amend the Federal Medical Care
Recovery Act to authorize recovery of health
care costs of beneficiaries from third-party
resources, such as insurance companies, under
circumstances not involving tort claims. The
Secretary of Health and Human Services should
also require the Service to initiate actions to
improve eligibility determinations, recovery
of costs from liable parties, and controls over
contract providers.


115448


   H R D-81-62
JUNE 10, 1981

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