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1994.04.20:  HCFA Reorganization 

Contact:  HCFA Anne Verano 
Wednesday, April 20 1994                         (202) 690-6145 


     HHS Secretary Donna E. Shalala has announced the reorganization 
of the Health Care Financing Administration.  This reorganization 
has been published in the Federal Register. 

     Secretary Shalala said "The reorganization of HCFA has been 
developed in consideration of the president's reinventing government 
initiatives." 

     Bruce C. Vladeck, administrator of HCFA, emphasized that "This 
reorganization will streamline HCFA's organizational structure and 
improve its efficiency in anticipation of health care reform." 

     In an effort to improve HCFA's operations, the number of 
associate administrators will be reduced from four to three; the 
number of components which report directly to the administrator will 
be reduced from 10 to nine; and the three primary components 
responsible for the managed health care initiatives will be 
consolidated into a single component which reports directly to the 
administrator.  These changes will be implemented by utilizing 
existing resources and without increasing the number of HCFA 
employees. 

     Steven A. Pelovitz, formerly the deputy associate administrator 
for management, has become the associate administrator for 
operations and resource management (AAORM).  This office is 
responsible for most of the day-to-day programs and administrative 
operations of the agency.  AAORM has been created by combining the 
associate administrators for operations and management and the 
addition of the office of the attorney advisor. 

     Kathleen A. Buto, formerly the associate administrator for 
program development, has become the associate administrator for 
policy (AAP).  AAP will retain all of the offices previously a part 
of the associate administrator for program development as well as 
the office of the actuary and a new special analysis staff. 

     Faye S. Baggiano, formerly the associate administrator for 
communications, has become the associate administrator for  
customer relations and communications (AACRC).  AACRC will retain 
all of the functions formerly handled by the associate administrator 
for communications including directing HCFA's public affairs 
activities, public liaison programs, and services and initiatives 
related to HCFA beneficiaries. 

     HCFA's reorganization includes several changes for the 
components which report directly to the administrator. 

An office of managed care has been established by combining the 
office of coordinated care policy and planning, the office of 
prepaid health care operations and oversight, and the medicaid 
coordinated care office.  

     The equal employment opportunity staff is now a component which 
reports directly to the administrator, reflecting the high priority 
attached to EEO by the administrator. 

     The office of legislation and policy now includes the 
intergovernmental affairs function and has been renamed the office 
of legislation and intergovernmental affairs. 

     All of these changes are designed to improve the operations of 
HCFA.   

     HCFA is the federal agency which administers the Medicare and 
Medicaid programs that help pay the medical bills of 67 million 
Americans.  HCFA's estimated fiscal year 1994 expenditures will 
total more than $250 billion. 
              
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