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Opportunities To Reduce Medicare Costs Under the End Stage Renal Disease Program for Home Dialysis Patients

HRD-83-28 Published: Jan 21, 1983. Publicly Released: Jan 21, 1983.
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Highlights

GAO addressed issues related to the reimbursement system proposed by the Health Care Financing Administration (HCFA) for the End Stage Renal Disease (ESRD) Program. GAO focused on methods to reduce Medicare equipment and supply costs for home patients who deal directly with suppliers.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Health and Human Services The Secretary, HHS, should direct the Administrator, HCFA, to require the purchase of dialysis equipment by home patients dealing directly with suppliers except in cases where to do so would place an undue hardship on the patient or where purchase can be shown to be more costly.
Closed – Not Implemented
The agency agreed with the recommendation but intends no action. It is seeking legislation to prohibit home dialysis patients from directly dealing with suppliers to obtain needed equipment. Such legislation would render the recommendation moot but until Congress is convinced to enact such legislation, the recommendation is valid and would save program funds if implemented.
Department of Health and Human Services The Secretary, HHS, should direct the Administrator, HCFA, to enter into lease/purchase agreements with equipment suppliers similar to those entered into by State-sponsored kidney programs in those cases where purchase of equipment is not required.
Closed – Not Implemented
The agency is seeking legislation to prohibit home dialysis patients from dealing directly with suppliers to obtain equipment. Such legislation would render the recommendation moot but until and unless the agency convinces Congress to enact it, the recommendation is valid and would save program funds.
Department of Health and Human Services The Secretary, HHS, should direct the Administrator, HCFA, to negotiate dialysis supply contracts with the major suppliers to obtain prices which are as favorable as those negotiated by other purchasers.
Closed – Not Implemented
The agency is seeking legislation to prohibit home dialysis patients from dealing directly with suppliers to obtain equipment. Such legislation would render the recommendation moot but until and unless the agency convinces Congress to enact it, the recommendation is valid and would save program funds.

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Topics

Health Care
Cost analysisMedical equipmentMedicarePatient care servicesProcurement policyRental equipmentUrologic diseasesDialysisRenal diseaseLegislation