Blog and Helpful Articles

What We’re Reading – Solving Your 9 Biggest Billing Blunders

The author of this article consulted with several coding professionals to come up with a list of the nine most common mistakes physicians make when it comes to documentation and coding.  The coding professionals also weighed in on what they thought were going to be emerging trends and coding changes that will most likely affect the lives of physicians in the near future.

The 9 Biggest Billing Blunders:

1.       Failing to note negatives

The physician must include both the positives and the negatives in order to obtain the proper CPT code for the visit.   A good rule of thumb is: “What did you touch and what was the result?”

2.       Skimping on substance

Do not oversimplify the notes regarding the patient’s visit.  If you spoke to the patient about it, write it down.

3.       Use of “noncontributory”

Don’t say “noncontributory” unless you really mean “it wasn’t worth mentioning.”

4.       Stuck in the middle

Avoid the habit of coding Level 3 visits.  According to Rhonda Buckholtz, vice president of business and member development for the American Academy of Professional Coders, “if they did it and they documented it, they need to code it and get paid for it.”  The Physician Practice 2009 Fee Schedule Survey found that undercoding two Medicare patients a week costs physicians more than $10,000.00 a year.

5.       Cloning patients

Focus on each patient’s chief complaint, symptoms and duration of symptoms.  Do not document the same things for every patient.  While the exams for each patient may be similar, the issues that were addressed are not.

6.       Electronic over-documenting

Avoid over-documentation by not using the same template for every patient.

7.       Overlooking CPT codes

Stay current on the guidelines for CPT codes.  Changes to the codes occur frequently and physicians need to be aware of changes, and document/code accordingly.

8.       Confusing the coder

It is important for physicians to have complete documentation to support the CPT codes being used.  Physicians and coders need to operate like a cohesive team, giving each other the needed information so they can each do their jobs better.

9.       Audit aversion

Chart audits uncover gaps between what the physician is documenting and what is being coded.  They point to areas of development and potential issues jeopardizing reimbursement.  Embrace audits for the benefit of the practice and your patients.

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Policies & Procedures: What if we don’t really follow them?

This is Part III of the three-part series on the importance of accurate policies & procedures and why that’s such a big deal.  We’ve seen that generic materials, while inexpensive, can have costly repercussions during a survey or regulatory review.  The same is true with creativity when your materials contain conflicting parameters and guidelines.  This time, let’s look at the importance of forms.

Incomplete and disorganized materials. For some reason, some policy writing companies don’t include forms in their policy manual, or the organization may use a form that is different from the one in the manual, if a form is included from the “factory”.  Fortunately, this is an easy issue to fix and an important one.  If you’ve been following this blog series, you already know that policy manuals are important. If you’re a regulated and accredited organization, they are mandatory and critical. Last time, we discussed inaccuracies in materials and information that gets “borrowed” from another organization and miraculously becomes your own. Nowhere is this more rampant than in the use of forms.

We renew our caveat against pirating copyrighted materials.  Assuming you have authorization to adapt a form to your organization, why not include it in your manual?  If one purpose of the policy manual is to create an operational blueprint, forms are paramount.  We suggest that you:  audit your forms; replace obsolete forms in your manual with the ones you’re actually using; and create an approval process so that staff members don’t implement new forms willy-nilly. By making a conscious effort to periodically review the contents of  your manual, you will avoid confusion among your staff, maintain the ability to clearly understand the information required and contained in the forms, and avoid the inability to explain ambiguity, inconsistency and inaccuracy in your data to a surveyor. That hot seat is avoidable with a regular audit of your forms.

In closing, you can see that our philosophy is akin to the “getting hit by a bus” analogy, but let’s be a little more positive.  What if you suddenly win the Lotto and are on a tropical island somewhere getting some R&R?  What…. you can’t get away for even one day because your staff won’t know what to do without you??  Thanks, I think we made our point!  Accurate materials that reflect your reality pay dividends in being great training tools and mechanisms to empower your employees to operate independently.  You’ll thank us for this advice one day, when you’re sipping a frosty Margarita by the water’s edge.

 

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What We’re Reading – Customer Satisfaction in Seven Steps

No business can succeed without clients, and building a friendly relationship is key. This article encourages face to face meetings during the course of a project to maintain communication. Another crucial point is to respond to clients promptly or to at least a call back to let them know their message has been received.  Also, it never hurts to pay attention to details which reassures clients you have their best interests at heart. For example, sending out personal holiday cards or birthday cards shows you care and appreciate their business. Check out this article for more ideas to satisfy customers.

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Policies & Procedures: What about Generic Manuals?

Last time, we discussed the purpose of policies and procedures and companies whose materials are generic to the industry and do not reflect a company’s reality.  This time, let’s look at another common issue among regulated organizations:

Creative manuals.  Creativity is a good thing, except when it holds you to a standard that’s impossible to meet. Recently, we’ve met clients who had comprehensive operational policies, but then cobbled together bits and pieces from others’ manuals to add to their own.  There’s nothing wrong with improving your materials if you find a process you like better.  However, we caution clients when doing this:

  • Others’ policy manuals are copyrighted and when someone shares his policies with you, and you copy them and make them your own, you may be violating the copyright.  In today’s culture, plagiarism abounds in academia and business, and the penalties continue to escalate.
  • Conflicts occur when you copy someone’s policy, although your own manual covers the same process, or, when the new material creates ambiguity.  More often than not, there are conflicting timeframes, requirements and guidelines, and the organization appears ‘schizophrenic’ to a regulator.  The question inevitably comes up: which process are you following?  Sadly, sometimes the answer is “Neither one.”
  • When you mix new policies with your own, you may introduce processes, or parts of a process, that speak to another regulator’s or accrediting organization’s standards. Even worse, those supplemental documents may mention another accrediting organization by name! Recently, a new client of ours had two sets of policy manuals, all in beautifully labeled and tabbed binders.  They had no idea what was contained in each set and more importantly, the materials referenced an accrediting organization that was not theirs.  Imagine the surveyor’s response to see that the client was committed to following a competitor’s guidelines!  Do you care to guess the outcome of that survey??

The best approach, if you find that your policy does not reflect your operational reality, is to rewrite the policy correctly yourself. This is not as difficult as you might think.  The benefit is that the resulting information will more closely resemble the guiding document it is intended to be, and it will be true for you.

Next time, in our last post of the series, we’ll discuss forms and their organization.

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Policies & Procedures: What’s the big deal?

The purpose of policies and procedures is to guide the organization’s actions and provide parameters for employees to follow.  They communicate the company’s standards and required processes, and ensure smooth and seamless operations and transitions….. when they’re followed.  We have recently completed a large number of re-accreditation projects and we’ve noticed quite a few clients suffering from a common set of maladies that we’ll explore during this three-part series.

“Dusty” policy manuals.  Many clients fall into two categories: those with very in-depth, customized procedures and those who purchased generic fill-in-the-blank materials. Either way, if the manual is “dusty,” it’s useless.  This signifies an organization that does not follow its own written processes and whose operations are, in all likelihood, quite chaotic.  Significant deficiencies abound in these organizations because – if the process is very cumbersome – people can’t understand it, commit it to memory, follow it and audit for it, all of which are requirements for a well-run, survey-bullet-proof organization.

On the other hand, if the materials are too generic and fulfill only the surface of a requirement or accreditation standard, they are of little real and practical value.  Moreover, these similarly chaotic organizations are often micro-managed because the owner or key manager is usually the only one who knows and understands the big operational picture. Consequently, bottlenecks can occur if this person is the only one who can perform a task correctly or train and monitor others’ performance.

These bare-bones materials also lack what we call the “how” that fulfills a standard or guideline. Oftentimes, the policy consists of nothing more than parroting back a guideline without providing the steps necessary to address the spirit of the regulation.  Forms are useful for that and many manuals we review lack sufficient forms to help the client comply with a rule.

Finally, experience has shown us that while some “off the shelf” materials are understandably not customized to the client’s unique operations, they often don’t even meet state-specific requirements.  As you probably know, Florida’s regulatory environment is as sweltering as our climate, and missing key regulations because your policies don’t speak to them can be devastating and costly.

In the next post, we’ll tackle clients whose creativity extends to their policies.

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What We’re Reading – IRS offers a Fresh Start

As you know, employers generally “must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. [They] don’t generally have to withhold or pay any taxes on payments to independent contractors.”  Many companies try to circumvent this requirement by classifying most or all of the staff members as independent contractors.

This can be financial and regulatory suicide for a business if it is done incorrectly.  The IRS has very specific guidelines for the criteria applied to professional relationships in order to determine whether the individual is an employee or an independent contractor (1099).

The three overall tests are:

1.   Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job.

2.   Financial: Are the business aspects of the worker’s job controlled by the payer?       (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

3.   Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Through its new Voluntary Classification Settlement Program (VCSP), the IRS is offering business an opportunity to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes. To participate in this new voluntary program, the taxpayer must meet certain eligibility requirements, apply to participate in VCSP by filing Form 8952, Application for Voluntary Classification Settlement Program, and enter into a closing agreement with the IRS.

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What We’re Reading – 9 Ways to Avoid Burnout

A recent JAMA article (JAMA. 2011;305(19):2009-2010) claims that “Burnout is common among physicians in the United States, with an estimated 30% to 40% experiencing burnout.”  The author of an article on Physicians Practice suggests nine ways that physicians can avoid burnout.  They range from practicing smart scheduling and making time to exercise, to ‘unplugging’ from work by reading nonmedical information, pursuing a hobby and spending time with family, among other things. For us non-physicians, some areas of commonality in this article can be helpful as well.

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Coding Cancers: A Common Charting Error

This blog was updated for ICD-10-CM.  Read it here.

One of the most common provider charting errors occurs in the area of cancer diagnoses.  Practitioners routinely document and code cancers when the patient’s disease has been treated and is no longer evident.  For risk adjusted practices, this means the patient’s risk score – and the practice’s reimbursement – are inflated, which can lead to positive (which are a bad thing) audit findings and loss of capitation.

The coding guidelines for cancer state that “When the primary malignancy has been excised, no further treatment is directed to the site & there is no evidence of an existing malignancy,” the clinician must document ‘history of XYZ cancer’ and not the cancer diagnosis. [Source:  International Classification of Diseases, 9th Edition, 2011]  Cancer histories are coded from the v10 category of codes (Personal history of malignant neoplasm) and are not weighted diagnoses under risk adjustment.  For MRA, it’s important to remember that funding losses are retroactive, so the impact of this error to the provider can be quite significant.

The rule of thumb for a cancer diagnosis is the presence of an active condition:  either one that is receiving treatment, or one that has been diagnosed via objective means and for which treatment is not pursued at the time (for any reason).

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What We’re Reading – Preparing for the ICD – 10 Transition

With only 37 months left before the healthcare world transitions to the ICD-10-CM, the author of this article suggests taking a systematic approach, in order to make the transition as smooth as possible.  The key elements in making this transition include:

Version 5010

All practices must convert to Version 5010 of the Electronic Data Transactions (EDI) by January 1, 2012.  Those that have not made the conversion will not be able to send claims or receive reimbursement.

Organize Implementation

Identify an individual or team of individuals that will be responsible for organizing and overseeing the ICD-10-CM transition.  The team should include at least one physician, as well as management and coding staff members.

Impact Analysis

Identify the areas of the practice that are going to be affected the most by the ICD-10-CM transition.

Information Systems

Conduct a system audit to determine which systems will be compatible with the ICD-10-CM.  Identify changes that will need to be made before the ICD-10-CM conversion.

System Vendors

Get in touch with system vendors to identify who will be able to assist with the conversion.

Documentation

Determine whether or not your current medical record documentation will be able to support the ICD-10-CM.

Coding and Billing Education

To an extent, everyone in the practice will require some level of ICD-10-CM training.  Determine what kind and how much training employees are going to require (i.e. coders will require more training than nurses).

Finances

Identify which payers have transitioned to ICD-10-CM and make appropriate changes to your billing to ensure payment.  Compare the current ICD-9-CM procedures for reporting to the ICD-10-CM.  Determine which reports will be affected by the ICD-10-CM transition and make necessary changes.

Post Implementation

Plan ahead and be prepared for the ICD-10-CM transition to affect every aspect of the practice.  The transition will take place on October 1, 2014 but the effects of the transition will be felt long after that date has passed.

 

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What We’re Reading – Customer Service vs. Customer Care

Research has shown that most customers would rather switch to a new company than fight to have their issue resolved. In fact, 96% of unhappy customers never voice their issue. Most customers simply don’t return to their now former suppliers. Instead, many of us vent to about 10 of our friends and those friends will tell about 20 or more people. Of the 4% that do complain, 95% stay with their current vendor when their problem is resolved.

Customers need to feel that the company they’re conducting business with expresses passion for their clients and their business.  Also, customers need to know they’re being treated fairly and with respect. Remember word of mouth will make or break your business. Your customers should know they can trust you and that your business has their best interests at heart.

Read this article for more facts and tips on how to find and keep your customers.

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