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<classification authority="sudocs">GA 1.13:T-AIMD-97-176</classification>
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 <subject>Health care programs</subject>
 <subject>Fraud</subject>
 <subject>Information resources management</subject>
 <subject>Claims processing</subject>
 <subject>Medical information systems</subject>
 <subject>Contract termination</subject>
 <subject>Commercial products</subject>
 <subject>Computer software</subject>
 <subject>Program abuses</subject>
 <subject>Overpayments</subject>
 <identifier>Medicare Program</identifier>
 <identifier>HCFA Medicare Transaction System</identifier>
 <identifier>GAO High Risk Program</identifier>
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<titleInfo>
 <title>Medicare Automated Systems: Weaknesses in Managing Information Technology Hinder Fight Against Fraud and Abuse</title>
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<abstract>GAO discussed: (1) the Health Care Financing Administration&apos;s (HCFA)
Medicare Transaction System (MTS) and the recommendations GAO made to
correct serious weaknesses in its management identified as part of a GAO
review; (2) two continuing HCFA initiatives to combat fraud and abuse;
and (3) underlying information technology management issues.&lt;p/&gt;GAO noted that: (1) to improve the efficiency and effectiveness of
Medicare operations and better address fraud and abuse, HCFA planned to
develop one unified computer system to replace the existing system, but
the project encountered problems from the beginning; (2) HCFA assessed
the project&apos;s viability and decided to terminate both the request for
proposals for the MTS sites and the entire software-development
contract; (3) HCFA has two other independent information technology
initiatives in the areas of fraud and abuse that are
continuing--analyzing the potential for using existing commercial
software and exploring the possibilities for developing antifraud
software; (4) HCFA did not begin to test the feasibility of using
commercial code-manipulation software to process Medicare claims until
about 1 year after GAO reported on its potential; (5) any positive
results from this testing are not expected to be implemented nationally
for at least several years; (6) HCFA chose to enter an agreement with
Los Alamos National Laboratory that allowed it to explore developing
such software; (7) results from this program appear to be years away
because once the system&apos;s design is complete, HCFA would have to award
another contract to a software developer to create from the Los Alamos
design; (8) HCFA would have to acquire new computers to implement any
Los Alamos-based fraud detection system because its approaches, which
were originally to become part of MTS, are not designed to be integrated
with the Medicare claims processing systems to which HCFA is
transitioning; (9) HCFA&apos;s negative experience with its automation
projects represents a pattern of weaknesses GAO sees throughout the
federal sector; weaknesses in management that stymie effective systems
development and implementation; (10) the Clinger-Cohen Act of 1996, the
Paperwork Reduction Act of 1995, the Chief Financial Officers Act of
1990, and the 1993 Government Performance and Results Act, provide a
powerful framework under which federal agencies have the best
opportunity to improve the management and acquisition of information
technology; (11) HCFA has recognized the need to more effectively manage
its information technology acquisitions, and has taken several important
steps, but much remains to be done to ensure that HCFA&apos;s initiatives are
cost-effective and serve its mission; and (12) HCFA has not yet
implemented GAO&apos;s recommendations in establishing investment processes
that will allow it to maximize the value, manage the risks of its
information technology acquisitions, and tightly control spending.</abstract>
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<identifier type="preferred citation">GAO/T-AIMD-97-176</identifier>
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<note>Testimony</note>
<extension>
 <searchTitle>GAO/T-AIMD-97-176; Medicare Automated Systems: Weaknesses in Managing Information Technology Hinder Fight Against Fraud and Abuse;
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<subject>
 <topic>Health care programs</topic>
 <topic>Fraud</topic>
 <topic>Information resources management</topic>
 <topic>Claims processing</topic>
 <topic>Medical information systems</topic>
 <topic>Contract termination</topic>
 <topic>Commercial products</topic>
 <topic>Computer software</topic>
 <topic>Program abuses</topic>
 <topic>Overpayments</topic>
 <topic>Medicare Program</topic>
 <topic>HCFA Medicare Transaction System</topic>
 <topic>GAO High Risk Program</topic>
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