Summary: A review was conducted of the implementation of the National Blood Policy and certain improper blood banking practices which have resulted in Medicare program overpayments. The National Blood Policy called for developing a safe, fast, and efficient blood collection and distribution system. It prescribed specific improvements in blood banking including: regionalized blood collection and distribution, transition to an all-voluntary blood donation system, and rational alignment of charges and costs for blood services. In addition, it stated that if the private sector could not satisfactorily progress toward its implementation, a legislative or regulatory approach would have to be considered. The American Blood Commission was incorporated to carry out the National Blood Policy. Several factors have hindered the implementation of the policy. Recommendations were made to the Secretary of the Department of Health, Education, and Welfare regarding the need to clarify its billing instructions concerning nonreplacement fees; seek recovery action from organizations that had engaged in improper practices; develop working agreements between blood banks and hospitals to assure compliance with Medicare instructions; and improve intermediary monitoring procedures.
