[Congressional Record Volume 145, Number 56 (Thursday, April 22, 1999)]
[Extensions of Remarks]
[Page E738]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       PARTIAL HOSPITALIZATION SERVICES IN INTEGRITY ACT OF 1999

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                        Thursday, April 22, 1999

  Mr. STARK. Mr. Speaker, my colleagues and I are proud to introduce 
the ``Partial Hospitalization Services Integrity Act of 1999'' that 
will enact much-needed reforms to Medicare's partial hospitalization 
benefit.
  Partial hospitalization is an important component of Medicare. In-
patient hospitalization for psychiatric treatment is expensive and 
disruptive to the person's life. Therefore, Congress created partial 
hospitalization as a cost-effective alternative for treating seniors 
with acute psychological disorders. The program allows them to live at 
home and receive intensive treatment.
  Unfortunately, many dishonest individuals have abused the partial 
hospitalization program and defrauded the government of millions of 
dollars. On October 5, 1998, the Department of Health and Human 
Services Office of Inspector General issued a report that exposed 
egregious waste, fraud, and abuse by many partial hospitalization 
providers. The report quickly gained national attention. Later that 
evening, NBC News featured the report in their ``Fleecing of America'' 
segment.
  The results of that audit represent a clear case of greed and fraud 
committed by dishonest mental health care providers. For example, the 
total program costs increased by approximately 482 percent between 1993 
and 1997, from $15 to $349 million per year! More distressing is the 
fact that much of this was squandered on unreasonable and unnecessary 
services, given to people who were not eligible, and provided by 
organization that were not certified to provide the services.
  The bill that I am introducing will correct the conditions that lead 
to the abuse of the program. The Partial Hospitalization Services 
Integrity Act of 1999 clarifies the current definition of the 
organizations that can provide partial hospitalization services and 
includes clear civil monetary penalties for fraudulent claims. The 
legislation represents a broad consensus of interested parties that 
include the Administration, representatives of qualified partial 
hospitalization providers, and patient advocates.
  It is time to act quickly and decisively to preserve a valuable 
service and to stop the waste, fraud, and abuse perpetrated by 
unscrupulous operators.

                          ____________________