Blog and Helpful Articles

What We’re Reading – Getting prepared for ordering and referring denial edits

Are you aware that, effective May 1, 2013, CMS will deny claims if the ordering and/or referring providers are not enrolled in the Medicare system?  This will affect all Medicare Part B covered services, durable medical equipment, orthotics, and supplies (DMEPOS) and Medicare Part A home health agency (HHA) services.  This article summarizes the three components of the claim edit that will be used to make the determination.

  1. Is the ordering and/or referring provider enrolled in Medicare?
  2. Does the NPI listed on the claim match the ordering and/or referring provider’s information?
  3. Is the specialty provider approved to order and refer services?

Providers should make sure that all their information is the most current, correct (watch for spelling errors) and the same in the PECOS and the NPI Registry systems.  Also, you should verify that the ordering and/or referring providers are registered with Medicare (click here).  May 1st is around the corner, so please start the implementation now to avoid denials.

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Personnel Requirements of a Florida Home Health Agency – Part 1

Every home health agency licensed by the State of Florida must have a person designated as the Administrator, and a person designated as the Alternate Administrator, who serves in the temporary absence of the Administrator.

To qualify to serve as the Administrator an individual must be a direct employee, … “who is a licensed physician, physician assistant, or registered nurse licensed to practice in [the State of Florida] or an individual having at least 1 year of supervisory or administrative experience in home health care”… or in a hospital or ambulatory surgical center, nursing home or an assisted living facilities. A direct employee is one for whom the agency withholds and pays payroll taxes; a direct employee is not a 1099 or independent contractor.

Medicare has no such specific qualifications for the Administrators but does require the skilled nursing and other therapeutic services furnished to be under the supervision and direction of a physician or a registered nurse. Since the Alternate Administrator must be able to assume the Administrator’s functions in his or her extended absence, the Alternate Administrator must meet the same requirements as the Administrator.

Being licensed as an MD, PA or RN is easy enough to verify. However, qualifying as an Administrator by having “at least 1 year of supervisory or administrative experience in home health care” can be a fairly subjective. The Agency for Health Care Administration (AHCA) requires this experience to be demonstrated through a resume. Simply stating that the prospective Administrator was “supervisor at WYZ Home Health Agency” may not suffice. In the case of experience, more is always better, so the prospective Administrator should provide details of the type of supervision that was provided and the type of personnel supervised. Similarly, administrative experience should be clearly described. Supervision or administrative responsibility over non-direct care personnel generally will not satisfy the qualification requirements, because the Administrator of a home health agency is responsible for the daily operation of the agency. Such responsibilities include interaction with skilled medical care providers, detailed knowledge of state operational laws and rules, as well as Medicare Conditions of Participation, if the agency will provide those services.

The position of Administrator certainly requires business acumen and general organizational skills, as well as significant skill and experience with the provision of health care.

Stay tuned for Part 2 on our series on Personnel Requirements of a Florida Home Health Agency where we will review the requirements for the Director of Nursing (DON).

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Personnel Requirements of a Florida Home Health Agency

This article series will explore each of the positions required by the State of Florida for the operation of a skilled home health agency.  We will outline the requirements of the Administrator and Alternate Administrator, Director of Nursing (skilled agency), Supervising Nurse (non-skilled agency), and Financial Officer.  In addition, we will discuss the requirements to meet if an agency has a Medical Director.

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Do EHRs Contribute to Coding and Payment Inaccuracies?

Many providers have touted the electronic health record (EHR) as the magic bullet to improve billing accuracy.  However, according to the Center for Public Integrity, “Medicare regulators also acknowledge they are struggling to rein in a surge of aggressive — and potentially expensive — billing by doctors and hospitals that they have linked, at least anecdotally, to the rapid proliferation of the billing software and electronic medical records. A variety of federal reports and whistleblower suits reflect these concerns.”

In the ‘paper world,’ physicians document the visit note and then generate a billing slip or superbill with the codes represented in the documentation.  Pre-printed diagnoses are either checked off for the patient’s visit, or if a particular condition is not listed, the clinician writes it freehand on the form.  With regard to procedures, here too, the most common ones are pre-printed on the form and checked off by the doctor.  It is rare that a provider adds a procedure to the billing slip.  This document is routed to the biller for processing.   It is important to note that the biller’s role is to process billing information and follow up on outstanding payments, not to assess the accuracy of the clinician’s documentation.

In the ‘EHR world,’ the clinician generally completes a series of templates for the visit which, depending on the software, may include areas for typing free text about the patient’s chief complaint for the visit.  Templates are a double-edged sword as they can provide a checklist reminder of all the components to address during the visit, and also speed the documentation process.  However, they can also be faulty and facilitate errors in the assessment, even encouraging the documentation of visit components that may not have been done or warranted by the patient’s chief complaint.  Females evaluated for prostate issues and males whose exams include areas of the female anatomy are not unusual; inconsistencies are also frequent as in the case of a patient diagnosed with a UTI whose exam reveals no findings consistent with the diagnosis.

In addition, some EHR systems allow for copying and pasting of information from a prior visit into the new visit note;  identical or substantially similar notes across the visits raises flags among payors and regulators. Despite these concerns, here’s the feature most providers love: the system assigns or suggests visit codes based on the information that has been documented.  Many clinicians assume the software assigns the correct codes and especially, assigns the most appropriate level of the visit which determines the reimbursement.

For example, the difference between a Level III visit and a Level IV visit involves differing components of the physical exam and visit complexity. Their reimbursement differs by $35.44 (2012, Broward county).  However, the distinction between the visits is not solely based on the documented activities, but must involve the medical necessity of the visit as documented by the clinician.  So in essence, performing a comprehensive Level IV visit examination on a patient whose chief complaint is hypertension under control could be over-coded by the software.

Although the majority of physicians do not knowingly engage in fraudulent documentation and billing, the Office of Inspector General (OIG) targeted potentially inappropriate payments for Evaluation and Management Services in its 2012 Work Plan.  One can bet that regulators will continue to scrutinize provider payments and the role of EHRs in over-coding or inappropriate payment.  The most optimal scenario involves a clinician who evaluates the data ‘proposed’ by the EHR program and validates the information and then subjects it to an independent review by a professional coder to assure the coded information is accurate.

Regardless of whether the software program assigned a billing code or the clinician completed a billing slip, the physician is responsible for the information transmitted to a payor on his or her behalf.  For this reason, providers should assess their practice’s coding and billing activities on a regular basis by submitting to audits by certified coding professionals.  A solid compliance program and remedial education for clinicians will go a long way toward mitigating potential fines and continued payor scrutiny.

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What We’re Reading – 7 Ways to Attract New Patients to Your Medical Practice

Virtually all providers are looking for ways to grow their patient base.  The challenge in these economic times is to do it without spending a fortune on marketing and advertising services.   This article explores less expensive and even free options to increase the traffic to your practice and summarizes info from physicians and other experts on how to grow your practice.

  1. Get social.  Your office should be making the most of the free platforms like Facebook, Twitter and blog sites.  If you have already made the investment in a website this can work in your favor.  You want to add useful information regarding your office (hours, services, staff, etc) as well as general facts on diseases and living a healthier lifestyle.  All it will cost is a little time, but in the long run, the investment will pay dividends in keeping your practice name ‘out there.’
  2. YouTube.  This is another great, no-cost opportunity to expose your practice to new patients and/or those who haven’t been to you in a while.  Ask current patients to make a video testimonial; it’s the same as a referral but will add a more genuine and human touch.
  3. Become an expert.  Write an article on preventing and managing common risks and associated injuries surrounding holiday events (ex. deep frying a turkey for Thanksgiving) and/or everyday occurrences you see in your practice.  The author suggests contacting your local cable network and offering to be an expert for one of their segments.
  4. Give out.  What better representation and publicity for your business than to have your name and/or picture on promotional items patients can actually use?  Some examples include pens, notepads, magnets and key chains.  Your photo on brochures and business cards also lends a more personal touch.
  5. Give back.  It’s a win-win when you and/or your employees volunteer in the community.
  6. Ask for help.  People love to help, so consider inviting your patients to send in their friends and/or family members.
  7. Say thanks.  A handwritten note for birthdays, anniversaries, etc. will go a long way, especially in this electronic age of impersonal, mass mailings.

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Is Your HIPAA Program on ‘Auto-Pilot?’ Security Rule Requires Continuous Oversight

Most healthcare providers automatically think about privacy issues when the HIPAA law comes to mind and seem to have gone on ‘auto-pilot’ when it comes to protecting privacy.  It’s not uncommon to see offices being mindful of the visibility of computer screens and paper medical records.  They are generally careful not to leave PHI face-up in high-traffic areas, they limit ‘hallway conferences’ about patients, and some have even gone a little overboard, removing patient names from files and sign-in systems.

However, because of the benefits (financial, operational and quality of care) and proliferation of electronic mechanisms for receiving, creating, maintaining and transmitting PHI, the need for additional and specific protection is very great.  In addition, the growing use of wireless networks and mobile devices, such as laptops, smartphones and tablets which allow providers to access PHI, mandates a whole host of other security processes that cannot be ignored.

The HIPAA Privacy Rule does contain some basic security provisions, and its guidelines cover all types of PHI, but a great number of providers don’t realize that a separate and more complex HIPAA Security Rule added specific provisions for protecting the confidentiality, integrity and availability of electronic PHI.

Where the Privacy Rule requirements appear more ‘black & white,’ the Security Rule is the complete opposite.  The main concept behind the Security Rule is its ‘scalability;’ in other words, security processes must be adapted to the uniqueness of each organization and cannot have a “one-size-fits-all” approach. A practice that has primarily paper records and little electronic PHI would implement the Security Rule very differently from a practice with an electronic health record (EHR) system.  The extent of the information that exists or resides in electronic systems dictates the provider’s activities with regard to security of ePHI.

The Security Rule requires a living, breathing process that must be second nature to the compliant practice.  Some components of the average security program include: network configuration and security; ongoing analysis of electronic system threats and vulnerabilities; disaster and emergency policies that spell out how the provider will access PHI and continue to provide care; mechanisms for routinely testing back-ups and ensuring their integrity; and a system for anticipating, resolving and preventing security incidents, just to name a few.

It would be naïve and dangerous to believe that an annual security assessment and a policy manual on the shelf are enough to demonstrate compliance with this regulation that carries monetary and criminal penalties for violations.  Monitoring security of ePHI and spotting breaches in security or issues that could potentially lead to breaches must be continuous.

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Home Health Claim Rejections Can Be Easy to Fix

Home health agencies are seeing more claims returned due to code ‘N5052: Beneficiary Identification incorrect.’  This means that the beneficiary’s name and/or other personal data in the CWF transaction did not match the data stored on the beneficiary’s master record with CMS.

After the 5010 implementation it is more important than ever to enter the beneficiary’s information exactly the way it appears on the Medicare eligibility check even if other beneficiary information, such as identification, shows a difference in name or other personal data.

Make sure to train office staff and to double-check information before transmission to avoid payment delays.

For tips on Home Health Billing or more info regarding this article, contact Imark Consulting, Inc. at 888-370-3339 or  www.homehealthbilling.com

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Medicare ACOs: Risk Adjusted Reimbursement’s Mathematical Impossibility (Part 5)

So far in this five-part series on Medicare ACOs, we’ve explored the basics of the concept, the patients’ participation, the fundamentals of reimbursement as well as the provider’s role and incentives.  Recall that we explained in an earlier section that our fictional MSO (that has risk contracts with MA plans) receives a monthly payment that is risk adjusted based on the health status of the member.  This means that the MSO’s PCPs report all of the member’s medical diagnoses at the highest level of specificity.  The MSO has no constraints on the number of diagnoses it can submit after each visit with the member, so if the member has 14 chronic conditions being managed by the PCP, the provider will document and submit information to the MA Plan (and ultimately, to CMS) on all of the medical conditions.  This results in an accurate health profile for the patient. However, this payment methodology has not come to the MSO without growing pains and setbacks.

The monthly payments to MA plans and our MSO were fully risk adjusted in 2007.  During the phase-in period, our MSO realized that its practitioners’ documentation of medical conditions was very sparse and lacked the specificity and links to co-morbidities that truly reflected the health risk and associated costs of the members’ care.  Of course, the physicians were treating the conditions appropriately, but because their payments had not been based on specificity of the diagnoses, they were lax in their charting and coding.  In essence, they were underpaid relative to the true costs of the members’ health care which they continued to deliver and for which they were at financial risk.  In essence, the checkbook became overdrawn for many MSOs.

Over the last five years, MSOs have embraced this payment system and physicians have improved their operations accordingly, resulting in more accurate reimbursement that covers the medical resources used by the member.  MSOs with a large concentration of MA patients don’t usually have the Medicare FFS patients needed to be an ACO.  In contrast, the physicians joining and forming ACOs are not generally well-versed in risk adjusted reimbursement and the proper documentation and coding required.   Why is this an important and alarming point?

The ACO benchmark is based on this same type of risk adjustment methodology.  The diagnostic information from provider claims for the fee-for-service (FFS) beneficiary is analyzed through the CMS-HCC model used for MA plans to yield a level of expenditure for an individual with a particular health and demographic profile.   So let’s consider the example of a diabetic female, aged 75 years in Broward County and only at the PCP who has treated the individual.

The MSO’s physician has reported the member’s diabetic condition and associated co-morbidities at the highest level of specificity.  The annual cost of providing all of the care this member needs is estimated to be $39,259.68.

Our Medicare physicians in the ACO have never been educated on the proper documentation and linking of co-morbidities in our diabetic female as his MSO counterparts. Our ACO physician has identified a few conditions associated to the beneficiary’s DM, but has not documented or coded them properly.  His payment has historically been based on the services rendered to the patient, which are largely independent of the number and gravity of the medical conditions. Assuming that none of the providers treating this patient have made the proper diagnostic associations and coded them (which, in our experience, happens less than 10% of the time in the FFS Medicare environment), the annual benchmark for this beneficiary is estimated to be $23,533.92, or 40% lower.

Remember that the ACO’s goal is to reduce healthcare costs by two percent from the established benchmark in order to benefit from any bonuses from CMS.  If the MSO member’s benchmark is 60% higher and arguably, the MSO has operated successfully under the managed care principles of cost-efficient, quality care, and generated savings to pool against more costly members with unpredictable and catastrophic conditions, how will the ACO do it with a lower benchmark?

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Medicare ACOs: Healthcare providers and the ACO (Part 4)

The ACO contemplates a paradigm where the entire continuum of care (from physicians to hospitals to rehab centers and everything in between) is coordinated on the beneficiary’s behalf to deliver quality and cost-effective care.   In the fourth installment of our five-part series, we explore the provider aspect of healthcare under the ACO  model.

During the course of the initial agreement with CMS, the ACO’s providers will continue to be paid under the fee-for service methodology, and there will be no prospective oversight of the services delivered to the beneficiary.  The concept is that the providers will deliver only the absolutely necessary care, in the most cost-efficient manner.  So for example, diabetes (DM) is a chronic condition that ravages the entire body and claims countless lives each year.  It is also a condition that can be managed effectively in the outpatient setting with the goal of reducing unnecessary hospitalizations which are not good for the beneficiary and which result in higher healthcare costs. Let’s entertain a fictional scenario in the world of ACOs:

One of the ACO’s primary care physicians, Dr. Smith, has a large number of beneficiaries with DM.  She establishes a diabetic management program that includes longer than average physical examinations by the doctor, which reduces the number of patients she can see each day and the reimbursement she will receive.  [In our last installment, we reviewed that ACO physicians continue to be reimbursed by CMS on a fee-for-service (FFS) basis for the Medicare-covered services they provide.] Dr. Smith launches a diabetic education and monitoring by nurses who regularly call the diabetic beneficiaries and inquire about their health, medication and dietary compliance, etc.  The doctor developed this program because studies show that patient education and engagement are crucial to good diabetic management and lower medical costs.

Dr. Smith also invests in technology that allows her diabetic patients to send their blood sugar readings to her nurses for review and monitoring. However, DM doesn’t take weekends or holidays off so hers is a 24/7 (costly) endeavor which is expected to benefit the beneficiary’s health status, prevent unnecessary hospitalizations and reduce healthcare costs.  Medicare doesn’t reimburse for the electronic monitoring or for the nurses deployed to this project, but the physician (with or without financial help from the ACO) will subsidize the program, hoping to benefit from the expected shared savings generated because of this physician’s investment in this program.

One of our Dr. Smith’s ACO colleagues in the same city, Dr. Jones, also has a fair number of patients with DM.  He sees his patients with DM regularly for a traditional office visit and delegates the education and monitoring so that he can see more patients per day and maintain his billing levels.  He has no diabetic program in place. The endocrinologist, dietician and diabetic educator who take over the diabetic management and education of Dr. Jones’s patients and bill CMS for the services they provide.  Dr. Jones is not too confident that the ACO will realize any shared savings so his attitude is to bill now for everything he can, and to refrain from incurring additional expenses that are not reimbursable, in case there is no surplus at the end of the year.

In contrast, because the MSO is at financial risk for its patients’ care, preventive and management programs are a matter of routine, regardless of the lack of additional reimbursement.  The perspective is that a healthcare dollar saved is a dollar earned.  The added benefit accrues to every MSO patient who receives more comprehensive, quality-focused care, as opposed to our ACO example in which both Dr. Smith’s and Dr. Jones’s patients receive quality care at more than double the cost.

The final installment in our five-part series on ACOs will explain the risk-adjusted component to the ACO’s payment and our concerns about the ACO’s ability to generate the required savings needed to realize any bonuses.

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What We’re Reading – Strategic Planning for Your Medical Practice

The words ‘strategic planning’ usually conjure up a mega-conglomerate with multiple committees and planning gurus, not a small to medium-sized medical practice, right?  Wrong. Physicians and decision makers need to – at least annually – stop, look at environmental factors and determine what trends are emerging and how they will affect the practice.  The author of this article suggests asking, “What are the most likely scenarios that could affect the practice in the future?” and then assessing each possible outcome and its chances of occurring. This will likely reveal actions that could be taken now or in the future to position the practice in the best possible way to capitalize on or minimize the effects of potential issues.

End of year is usually a good time to think through practice goals and create action steps to realize them.  Do you want more time with your family?  A less hectic pace? More revenue?  Brainstorm some ideas as you assess the environment, and set some realistic achievable and deadline-oriented goals to make 2013 a banner year for your practice.

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