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<classification authority="sudocs">GA 1.13:HEHS-98-134</classification>
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 <subject>Health care services</subject>
 <subject>Native Americans</subject>
 <subject>Service contracts</subject>
 <subject>Administrative costs</subject>
 <subject>Health services administration</subject>
 <subject>Comparative analysis</subject>
 <subject>Health care programs</subject>
 <identifier>Alaska</identifier>
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<titleInfo>
 <title>Indian Self-Determination Contracting: Effects of Individual Community Contracting for Health Services in Alaska</title>
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<abstract>Pursuant to a legislative requirement, GAO reviewed the impact of
individual Indian Health Service (IHS) contracts, focusing on the: (1)
extent to which Alaska Native communities contract directly with IHS to
manage their own health care services; and (2) effects these contracts
are having on costs and the availability of services.&lt;p/&gt;GAO noted that: (1) relatively few Alaska Native communities have
contracted directly with IHS, and those that have done so generally
contracted for a limited range of health services and thus continue to
receive many services through a regional health organization (RHO); (2)
fifteen percent of the 227 Alaska Native communities have some form of
direct contract with IHS; (3) the dollar amount of these direct
contracts represents about 6.5 percent of all IHS contracts in Alaska
under the Indian Self-Determination Act; (4) GAO found that communities
with their own contracts have higher administrative costs than RHOs; (5)
IHS works with each contractor to determine the amount of administrative
costs needed to manage the contracts; (6) indirect costs--the major
component of the administrative costs--include such expenses as
financial and personnel management, utilities and housekeeping, and
insurance and legal services; (7) community contracts need about twice
the amount of indirect costs that a RHO would need to manage the same
programs; (8) when a community chooses the contract directly with IHS
for services previously provided by a RHO, it also has a need for
one-time start-up costs that increase the administrative cost
differences between community contracts and RHOs; (9) determining the
effects of individual community contracts on service availability proved
difficult because contracts involving a switch from RHOs to local
communities are relatively few in number, cover few services, and some
have been in effect for a short time; (10) the limited comparisons that
can be made show that service levels have not been greatly affected by
the switches thus far; (11) however, under current IHS funding
limitations, new contractors are receiving only part of their funding
needs for administrative costs and may have to wait several years to
receive full funding; (12) if communities decide to contract for service
programs but do not receive full funding for administrative costs and do
not have other resources from which to pay for these costs, they face
the risk of having to divert funds from services to cover their unfunded
administrative costs; (13) while funding shortfalls have not yet
resulted in widespread adverse effects on health services availability
in Alaska, the long-term picture raises cause for concern; and (14) in
choosing to operate their health services without waiting for sufficient
administrative funding, Alaska Native communities may have little option
but to accept a potential for reduced services as a trade-off for
managing elements of their health care systems.</abstract>
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<identifier type="preferred citation">GAO/HEHS-98-134</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Health care services</topic>
 <topic>Native Americans</topic>
 <topic>Service contracts</topic>
 <topic>Administrative costs</topic>
 <topic>Health services administration</topic>
 <topic>Comparative analysis</topic>
 <topic>Health care programs</topic>
 <topic>Alaska</topic>
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  <title>United States Public Law 143 (105th Congress)</title>
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