Response to the Senate Permanent Subcommittee on Investigations' Queries on Abuses in the Home Health Care Industry

GAO views were requested on whether existing legislation and regulations are adequate to prevent profiteering in the home health industry under the federally financed health programs. GAO was asked for specific comments on: (1) the effectiveness of the cost-reimbursement system or proposed alternatives; (2) the effectiveness of intermediary audit coverage; (3) the effectiveness of oversight and administration by the Health Care Financing Administration (HCFA); (4) the means by which disallowances can be recovered by the Federal Government without rendering insolvent the bona fide home health agencies (HHA's); and (5) the means by which the Federal Government may terminate irresponsible HHA's from participation in federally funded home health care programs.