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Summary
The Professional Standards Review Organization (PSRO) program faces a proposed phase-out, sparking debate on its future. Recommendations include funding reforms and adapting PSROs for pro-competitive healthcare systems.
Area of Science:
- Health Policy
- Medical Economics
- Public Health Administration
Background:
- The Reagan administration proposed a three-year phase-out of the Professional Standards Review Organization (PSRO) program.
- Debate in the 97th Congress centers on concerns about government intrusion versus the effectiveness of physician-based review.
Purpose of the Study:
- To analyze the potential future directions for the PSRO program.
- To explore the role of physician-based review within evolving healthcare financing systems.
Main Methods:
- Analysis of legislative debate and policy proposals regarding the PSRO program.
- Examination of potential funding models and organizational changes for PSROs.
Main Results:
- Three potential futures for PSROs: rapid elimination, slow starvation, or retention with significant federal relationship changes.
- Suggestions for enhancing PSRO performance include diverse funding and linking budgets to local effectiveness.
Conclusions:
- The role of PSROs must evolve with national healthcare financing changes.
- Physician-based review remains crucial, particularly within "pro-competitive" healthcare models.