Medicare Transactions
A550 milion ssn in pret management
By Brian Friel
‘The Heath Cae Financing Adniniscaton, te agency tat dns
Meat, pes yes, For 1991 to 1957, ae least 930 eon
dereosinatie Meticae Tansitin Sytem
‘Tosay FICEA 82 page statge pa Br lafornatonteuolony ovr te
next five years aks po menin oftheil-fited syste instead on
‘aking oblquerefencest th exon oft HEPA TT invert
ffi" HEPA Cher eformation Otox Gry Cweopt, who Wasted
te NTS dewlopment was cacee ay the gem mong
"Some he enemas MTS were rely you conmeps. Where we fe
down vas he inplmestaio,* Chrstoh ys "When ute rowing wp,
you fi lan ere thes nl, en then idea ye. You doc
Js junp ino arora”
“i ian of HCE compute poles yi eenlaguces
Congres wens tous potas ete eas nt he een
dons gamer a ation ue eh
am, uiagrous ropes igus pares wd ances
{Gren The ssens ao prepay ig aro fae
‘ate or et eto sani) od wien nlangge ope
inte 1950 an! sts seas COBOL
‘Tha, sometime in the 98, dams nth ageney tat ie systems are
‘becomng manageable. Soit decides bud one arg, inegrated
sje ta atthe agua programe a ston xpd reap
Igo est onnge ovr ime (er ssigBowt up font erat, 32
course) Ovni on sytem i ovo lea expense than mara
Imutiplegrtens. Techlony managers pict that lorus day about
fe years dow the oad when ey wil atthe bos, wnat th
sysemandbas inthe apple of te agency alessio, dota
‘embers of Congres aad chewing ape,
‘But yor know wha happen inte,
[ULHRA case, te agency ised a reuast or propos fr s mezn-
sysemon Sept 17,1982, Ever before the ell i ders the ret, the
‘reuh and uman Serees Departmen: npecae general ecommendedthat HCFA pause and "tlw a more ately odentad aprsach
ssraleing couotdeing ed integrating Medicare aims process
Four month afr request for propos went cu th inpecor genera
suggested tat FICFA eee to more ceri dene what ely he
‘gens nated tne Maaare Trasaston Stem todo The1O Usd
recommended tht HCFA aks aur contents nar ha Medicare
ib acomtanly changing program tht prods feeble, dapatle stare
Inresponse, HCFA stained 11 work groupsto came varus specs
of Movinrpreconing nd provide lnemnionte te oneastr Late,
the nuber oF work gros would te enpanied 0 38.
In th mtaninis HCPA snared OTE Gover Series the MTS
onactin lanay (94, a Apel 1998, HCPA hie Imereti I,
Sal T company is Vgins now knowns Aveta, indepen
IHoutor he cous’ props
"This new stem wl bingo aly anew eraof castomer service nd
onveninse fr Meicae eiaesbemed HIS Sener) Deana
Silla ina Janeary 199 pes elane "Ie wes stat-ofthe art cts
to replae te forms and thebaestht ive caraered edear in
‘Me pst" The sre would be completed ne 198, he reese
(GTE bese placing ts sae to beip HCFA combine ino one 9m.
Mescare’s 13 sstns x 50 operated by more han 70 contac,
\shiethe work groupe iedto ae sre fh gia’ sstane
arctitecure|
Danger Signe
‘The dargcr signs wer lod, In Dect 1994, the impor goal
sgn warned HCPA thet wast ping GTE enough information bed
the contactor sla forte comglenies of Medcareprocesing The
folowing yer, HCFA asued the 1G ta iad begun providing ample
infomaonto OTE Th ten way or rac fer al splonenation b
Sepenber 998, HCFA wit.
In November 1895, the GoreralAceourting Ofc ighighied wv
onze it ad with MES fa rpot tothe House Goverment Ref
(Commits, neadrg acter cemact requemens a Ugh schol anda
Tack rele oat bene brnaon
ThensHCFA Acmitstrtor Brae Vadeck esponde: "Weare well aware
‘hat hia is highrise venue We ae sondage projet wah akeot
spprecntion ofthe nod to nage be fesse”
‘ si1996, Ics nar HICFA ant GTE dt the MT
evelopment sekeile ha ao may overagping anestones, het
wing wet uaheeded anlnermetics offal would est at House
esangia ay 1907Aonth fie tat ing, HCEA crderad GTEto op work fx 90 days
‘nallbutone of te segment of MS to vaste te ewons rhe
Pests rating cor vars and mies cen
By May 1997, OAO was soe adamant ht NTS wa in big tote
EEA ha et plane! the pnjecs hedle wel enough di ot have
P Inetuesto gauge progres andbad fale o use ect
brett sales ata her toas fe com tack wi aves whee
Ss cpat on MET wl core toa tur onthisinvestest” GAO
sd (TAIMD-9791) Inaddon, th projected costs of MTS had
‘susvoonod fon $1 millenia GAO esoned nat HCFA
fd open! $80 alone pois 2 though HCPA cys the tot
‘Spenton MTS wes $5 ilion
Te reponse, HCFA, GTE ani even Iter vowed at MTS would be
‘compete bei probaly ne wel 2300.
“Ther meth eter, HCFA cancel is cet with GTE.
"Too Much Conddeace!
We hd one maj sak ie the We of ite MTS] expen, wd that
‘one roby hing son much concen te ality ofthe onracor
To dave," frmaradniasror Vadose sa
‘Un mi-1998, HCFA continued to work onredhcing the sunbe of
‘pve tale en, Tenis uspindelalleolerazaton eff te make
fre aro mien tae 9 sftate cde were seo potential 2K
icles
HCPA dita. coms ot ofthe MTS projet cemphtaly empty tani. The
‘gen i cat dew the suber af onc ad shes mara
[diearepracesng stems aod ingress 1 ste io Ta
‘on the prot pve aguney oli abt undersandng thew
ther ayson wich ee conoid prima by eartnctrs, epee,
"HCPA came ou of [MTS] with auch learer shor fo medion tom
‘eaegy for manag eae processing," Vides sy.
1a fst Vlndeck ye that MTS grub illcnul ave be salragad
fier GTS ile, excogt to ctr, Ft, Congres andthe Clinton
‘nissan fledo Snr nay ofthe betes thal woud sy
tect o an expontve ing, iteptedeystem induding tt rd
‘etowioe and improverents n pocesine eEcency. Seco, the projet
fl wit tothe stl reals ion, it championed by forme: Oe
htanagement na Budget Diretor Frauke Rates st sgl "i>
Tang" procurements jist dont work.
"Atte sinc the exe nansh ns a9 docinated by Dire Raine
“nosn fo sige compretenveprocaenens tat een hough vou
‘ul sl make sn ele egument foe METS, welt in ead
‘hy shee of coving ON, Visdexk Says“Th prj tala ty eazthe ison spony Shahan 1934. These
lo sil system fr Medea: prceaing. Astin io BEX row
‘ive information technology pln cure sens stl “deasy
‘fet busbas nyse des osoplies aan re why fs
‘example, cm precesng was agely paper hanling futon.
(Media rocesing satens and HCPA cena ote It insure
‘eon svpanialy arto ae teohadiog plement 10 13 eas
‘ge pia operating on newer equip
LCEA‘s not mach beter of ow than tas i198, pst cae the
teemoogy sa har spt oe as vo fas rolung YEKprclens. But
HCFA id lea loons fem he effort wich we fected the
ageaejs pew IT states pan
+ Secceaatiomiltons HCFA‘ covtast wih GTE steal
fue he contasortiee years bits fal pacage Az
‘Gstment ote cect equingineremeral dele of
{ofvar came oo sand ove un CEA allowed mest to
‘val and did poor ob motoring GTE'promen, HCFA
‘ow pins uss “oda contacting” which spate:
Imotemzuon atots ino tet pases under eprate cOnaes.
+ Keow what you wast Before you a fort Not oy dd HCFA aot
shave a complete grasp on he fs ates ofetaod, false.
teving ther reno GTE wt cena ore apparent hat he
‘molemiaton eon ws vey complex
+ Aid asin eo New guramts pe geting tacked oats
MIS, "There ae staves ad wanesaves You carl the
arnataves outage ngs you must have." CrizopE Sys,
"You dont wae yur energy cn tangsthat ee iets"
1+ Hie a invesinent review process, The MTS efor was kept
cer eer sertin by an eral anageict Dodo
Indepenion valdatonconvaco, th spect gens fice 1nd
the Gereral Aseouring Offce But despite ayes of overs,
‘her as mo stucured vest resew proce HCFA Bs
tine rated mut a proceso ele retvn om isezment,
‘eablt peoraanoe meaaures ta tecinaogy eos t agstcs
Ines: betes deny rik tht euld del vesmens, set
(uta dela schecul or sccomplsug ll pasts Of ays.
‘Slonsra hat jorcarn as consiet wh the gency
vel etnolegy achtecure.
"We davloped an itera vison fat cide ot jt laine
prscesina” Cisophsays "We vanto bud an eerris-wie
Firion ttre ta dace ais coe Then we wl ve
feterpinedtabane tat ne acealoto al our plications at txedthe
‘ea
ripeas“+ Manage epetatons HCFA pronisid te moon but deter
lie Thejoo of ting out te agen pry daeunecid ended
foc ttre syne a uensly ener HCPA
‘ue plan exp the icles af ecoverg om er of poor
‘Fintan la ato, the Sve year pan deseres sow
td sont erento noderising he agemyeeyem.
+ Rede sik, HCFA‘snew Sve-year plan calls for paomancs-
Raed contrarting for I pacts eh oonive payers edt
‘seeing quality and scheluleroquieners. The gery wil also
‘are Sci pre ayers Sra)
LHCEA learned ore proce manageent lessons tron i suaentl
‘a wih he Ya bg ining tow engage progam mamas in
‘eelegy yrojeteand parse. Y2K vasa do-ordiesuton, bt
{Ghrstors bape to ul onthe conidene rstredby sucostiiy
Ace wih eile
‘Weve wonthowar anf now if bick o practi. TRereare 1 of
computing otis tool with" Christoph spe "When you cn xls
Sport for prot ht real ecae he sais) the bases eed,
‘henyou have amuch biter cnaoe of eing seen keto nk
‘net takingthme woo eHow