 |
 |
 |
|
 |
HEADLINES
from Medicare and Medicaid Guide Monday, June 30, 2008
Click on a headline below for the full story.
Decisions and Developments
CCH® Reimbursement Integrated Library
The Reimbursement Integrated Library delivers the key performance indicators for maximizing reimbursement. The Library includes three invaluable titles:
- Dennis Barry's Reimbursement Advisor - This monthly newsletter provides all the facts about reimbursement strategies to minimize the adverse effects of DRGs, RBRVs, APCs and capitation to optimize hospital reimbursement.
- Receivables Report - This monthly newsletter includes actual profit-improvement examples from facilities nationwide, secrets for successfully challenging denials, tips for using automation to increase cash flow, and strategies your colleagues are using now to prepare for health care reform.
- Hospital Accounts Receivable Analysis - This quarterly journal is a synopsis of statistical data related to hospital receivables.
For more details, contact your sales rep.
|
Reimbursement Integrated Library
Dennis Barry’s Reimbursement Advisor
June 2008, Volume 23, No. 10
Among the articles featured in the June 2008 issue is one that examines a federal district court’s ruling in favor of a hospital that challenged the Centers for Medicare and Medicaid Services’ (CMS) calculation of the supplement security income (SSI) fraction used to determine Medicare disproportionate share hospital payments. This issue also features articles on recent decisions regarding the “good cause” requirement for claims reopenings, successor liability when purchasing a provider, and the potential financial risk related to the “foundation model” for graduate medical education (GME) programs.
- “Foundation model” for GME programs poses financial risk: Hospitals may face disallowances for residents rotating to nonhospital sites. A popular model for residency training programs is the sharing of expenses among hospitals in a community. Under such models, hospitals within a community jointly finance one or more residency programs, and the residents rotate among the participating hospitals. Although hospitals involved in such programs have assumed that they can count their pro rata share of time spent rotating to nonhospital sites when the hospitals, together, bear “substantially all” of the costs, CMS does not agree. This article examines CMS’ interpretation of GME payment under this model, a recent hospital appeal of the application of this interpretation, and the Provider Reimbursement Review Board’s (PRRB) decision on the appeal.
Read this month's Advisor. Subscribers only
Not a subscriber? Subscribe today.
|
Receivables Report
June 2008, Volume 23, Issue 6
Business Office Salaries. Average salaries for hospital billers rose slightly from 2006 to 2007, according to a survey of US hospitals. The average increased from $29,481 to $30,004, with the highest wages paid by larger hospitals, at about $33,000. You can read more in this issue of the Receivables Report.
Read this month's Advisor. Subscribers only
Not a subscriber? Subscribe today. |
Hospital Accounts Receivable Analysis
Fourth Quarter 2007, Volume 22, Number 1
- Major Indicators. At the end of 2007, US hospitals reported seeing mixed results among their key indicators. In the HARA Report on Fourth Quarter 2007, we break it down for you.
Subscribers only
Not a subscriber? Subscribe today.
|
|
Headlines
from Medicare and Medicaid Guide
CMS to delay processing of physician claims
CMS will temporarily suspend the processing of Medicare claims related
to physician and non-physician practitioner services to delay implementation
of a 10.6 percent payment cut scheduled to go into effect July 1, the agency
announced June 27. According to CMS, “by holding claims for health care
services that are delivered on or after July 1, CMS will not be making any
payments on the 10.6 percent reduction until July 15, at the earliest. ”
CMS took its action after the Senate on June 26, 2008, blocked a vote
on Medicare legislation that was passed by the House of Representatives two
days earlier. The bill (H. 6331) would have amended titles XVIII and XIX of
the Social Security Act to extend expiring provisions under the Medicare program,
to improve beneficiary access to preventive and mental health services, to
enhance low-income benefit programs, and to maintain access to care in rural
areas, including pharmacy access, and for other purposes.
Action on the bill in the Senate is not expected until after the July
4th holiday. CMS is considering additional actions to address other expiring
Medicare and Medicaid provisions. CCH Washington Bureau, June 30, 2008.
MedPAC recommends significant payment system reforms
A new payment design for bundling Medicare payments to cover all services,
including hospital and physician services, during an episode of care is being
proposed by the Medicare Payment Advisory Commission (MedPAC) in its June
2008 report to Congress. Other major changes include: (1) adding an outlier
payment to the skilled nursing facilities (SNFs) prospective payment system
(PPS), as well as other significant changes to the SNF PPS; (2) changes to
the physician payment system to encourage the delivery of primary care; and
(3) the development of a “medical home” demonstration project.
Reforming the Delivery System, MedPAC Report
to Congress, June 1, 2008.
Prevalence, causes, and effects of physician self-referral analyzed
Recent growth in the number of physician self-referrals, physician-owned
specialty hospitals and ambulatory surgical centers (ASCs), and imaging services
performed in physician offices and independent diagnostic testing facilities
(IDTFs) has resulted in higher utilization of services, increased costs, and
treatment of more profitable patients in specialty hospitals and ASCs than
in general hospitals, according to a report released by the Robert Wood Johnson
Foundation on June 24, 2008. The report addresses: (1) the prevalence and
growth of self-referral to physician-owned specialty facilities; (2) factors
leading to physician self-referral and the creation of physician-owned specialty
facilities; and (3) the effects of physician self-referral and physician-owned
specialty facilities on the quality, cost, access and organization of health
care. Robert Wood Johnson Foundation Report, Research
Synthesis Report No. 15, Physician Self-Referral and Physician-Owned Specialty
Facilities, June 2, 2008.
Proposed settlement would accelerate Part D auto-enrollment
HHS has agreed to a proposed class-action lawsuit settlement that would
accelerate the Part D process of auto-enrolling full benefit dual eligibles
and for deeming them eligible for the low-income subsidy (LIS). If approved,
the proposed settlement would require CMS to modify its current system for
auto-enrolling to enable it to process each Medicare Modernization Act (MMA)
file received from a state on the day the MMA file is received or on the first
business day after it is received. The settlement would also require CMS to
conduct an outreach campaign to pharmacists and pharmacy organizations in
order to explain the modifications to the POS contract and encourage utilization
of the POS system. Two weeks after approval, CMS would be required to issue
clarification of the best available evidence (BAE) policy in the form of an
health plan management system memorandum. CMS would also need to implement
internal procedures under which a regional office caseworker or CMS contractor
would be required to contact the State Medicaid agency to confirm whether
or not the individual was Medicaid eligible in any month after June of the
previous calendar year. By June 30, 2008, or eight weeks following approval
of the settlement, whichever is later, partner tip sheets instructing beneficiaries,
pharmacists, and advocates about beneficiary rights and plan requirements
related to the BAE policy would be issued by CMS.
Situ v. Leavitt, Proposed Settlement Agreement,
Civil Action No. C0602841, N. Cal., June 19, 2008, ¶52,264.
Senators urge CMS to open waiver decision process
Four members of the Senate Finance Committee contend that CMS has not
followed its own announced procedures for deciding whether to grant states'
requests for waivers of statutory requirements concerning Medicaid and the
State Children's Health Insurance Program (SCHIP). In a letter to HHS Secretary
Mike Leavitt, committee chair Max Baucus (D-Mont.), Senator Jay Rockefeller
(D-WV), Senator Jack Reed (D-RI), and Senator Sheldon Whitehouse (D-RI) urged
the agency to allow notice and public comment at both the state and federal
levels before granting waivers. The senators noted that the GAO has “
repeatedly” criticized CMS' lack of transparency concerning waiver
decisions. In addition, the final report of the Medicaid Commission appointed
by President Bush recommended that the administration “comply with the
existing policy for notice and comment.”“Despite this broad consensus
regarding notice and public comment, waiver negotiations are currently conducted
largely behind closed doors, ” the senators wrote.
Senate Finance Committee Release, June 19, 2008.
Decisions and Developments
CMS Manuals
Update to outpatient therapeutic services incident
to physician services
Medicare Benefit Policy Manual
, Pub. 100-04, Transmittal No. 90, June 19, 2008, ¶157,398.
Premium content
Hospital outpatient prospective payment system update
Medicare Claims Processing Manual, Pub.
100-04, Transmittal No. 1536, June 19, 2008, ¶157,399.
Premium content
Submission of self-administered drugs exclusion list
Medicare Benefit Policy Manual, Pub. 100-02,
Transmittal No. 91, June 20, 2008, ¶157,400; and Medicare Claims Processing
Manual, Pub. 100-04, Transmittal No. 1539, June 20, 2008, ¶157,403.
Premium content
Skilled nursing facility coding updates
Medicare Claims Processing Manual, Pub. 100-04, Transmittal
No. 1537, June 20, 2008, ¶157,401.
Premium content
New waived tests for clinical laboratories
Medicare Claims Processing Manual, Pub. 100-04, Transmittal
No. 1538, June 20, 2008, ¶157,402.
Premium content
Ambulatory surgical center payment updates
Medicare Claims Processing Manual, Pub. 100-04, Transmittal
No. 1540, June 20, 2008, ¶157,404.
Premium content
Required elements needed during a pelvic examination
Medicare Claims Processing Manual, Pub.
100-04, Transmittal No. 1541, June 20, 2008, ¶157,405.
Premium content
Remittance advice message and Medicare summary notices
for the durable medical equipment, prosthetics, orthotics and supplies national
competitive bidding program
Medicare Claims Processing
Manual, Pub. 100-04, Transmittal No. 1542, June 20, 2008, ¶157,406.
Premium content
Numerous changes to the Medicare provider and supplier chapter
Medicare Program Integrity Manual,
Pub. 100-08, Transmittal No. 260, June 20, 2008, ¶157,407.
Premium content
Additional reason codes for processing claims under
the durable medical equipment, prosthetics, orthotics, and supplies national
competitive bidding program
One-Time Notification
Manual, Pub. 100-20, Transmittal No. 356, June 20, 2008, ¶157,408.
Premium content
DAB Decisions
Agency discretion in provider revocation
The provider enrollment of a physician who disclosed his felony conviction
for selling non-controlled prescription drug samples was properly revoked
by CMS. The physician had informed CMS of his previous conviction when enrolling
as a Medicare provider in April 2006. CMS approved the enrollment in May 2006,
but revoked his billing privileges after a Medicaid state agency made an inquiry
about the physician's Medicare status in light of his conviction. The Secretary
has the authority to deny enrollment or re-enrollment to any provider who
has been convicted of a felony offense that the Secretary determines is detrimental
to the best interest of the program under 42 C.F.R. §424.535(a)(3). Thus, CMS has
the discretion to determine which convictions will be the basis for denying
enrollment or revalidation and revoking the physician's billing privileges
was proper. Barnett v. CMS, HHS Departmental Appeals Board,
Civil Remedies Division, Doc. No. C-08-210, Dec. No. CR1786, May 8, 2008, ¶121,376.
Premium content
Ambulatory surgical center license
A physician group and a clinic (the petitioners) did not qualify for Medicare
provider numbers as ambulatory surgical centers (ASCs), because they were
not licensed as ASCs by their home state. The providers alleged that the state
did not require them to be licensed as ASCs in order to perform office endoscopies
and therefore, they were compliant with state licensure laws and eligible
for Medicare approval as an ASC. The hearing officer noted that the state
licensure laws did not require licenses for the endoscopies performed in a
physician's office, but did require a license as part of the operation of
an ASC. CMS argued that the petitioners also failed to meet the definition
of an ASC under 42 C.F.R. §416.2, which required that an ASC must be a “
distinct entity that operates exclusively for the purpose of providing surgical
services to patients not requiring hospitalization.” The hearing officer's
determination was based on the state licensure issue only, however, since
CMS did not raise the “distinct entity” argument at the hearing.
The hearing officer correctly concluded that, as long as the petitioners lacked
state licenses as ASCs, under 42 C.F.R. §416.40they were not qualified to enroll in Medicare
as ASCs. The petitioners' argument that their accreditation by a national
ambulatory care association was sufficent for Medicare provider status failed;
under 42
C.F.R. §416.26(a)(2), CMS requires that, even with deemed status
through accreditation, ASCs must comply with state licensure requirements.
Salem Gastroenterology Associates v. CMS, HHS Departmental Appeals
Board, Civil Remedies Division, Doc. No. C-06-519, Dec. No. CR1785, May 7,
2008, ¶121,375.
Premium content
Immediate jeopardy noncompliance
Civil
money penalties (CMPs) of $5000 per day for four days of immediate jeopardy
and $100 per day for 94 days of substantial noncompliance against a long-term
care facility were reasonable after a resident was found dead with his face
and arm caught in his bed's side rail. The state department of health surveyed
the facility after it received a report regarding the patient's death. From
August 22 through August 25, 2006, the long-term care facility's deficiencies
posed immediate jeopardy to residents' health and safety. The long-term care
facility placed the deceased resident in a bed with rails that were eight
inches apart, rather than the FDA recommended maximum of four and three quarters
inches. A survey also established that the facility was using similar side
rails on 53 other resident beds posing an immediate jeopardy to those residents.
The facility was not in substantial compliance with Medicare program requirements
that resident areas remain free of hazards from August 22 through November
27, 2006. Laurelwood Care Center v. CMS, HHS Departmental
Appeals Board, Civil Remedies Division, Doc. No. C-07-222, Dec. No. CR1796,
May 30, 2008, ¶121,383.
Premium content
CMS failure to appear
Because CMS failed
to present any evidence whatsoever in support of its findings that the provider
was not in substantial compliance with conditions of participation, an order
was entered in favor of the facility. Counsel for CMS requested postponement
the day before the scheduled hearing, but the request was denied because the
provider's counsel and witnesses had already begun traveling to attend the
hearing. CMS was granted permission to appear by telephone to present its
exhibits but took no action after the exhibits were delivered to the wrong
city. St. Joseph Villa Nursing Center v. CMS, HHS Departmental
Appeals Board, Civil Remedies Division, Doc. No. C-07-628, Dec. No. CR1800,
June 6, 2008, ¶121,386.
Premium content
Date of certification
A provider does
not become eligible for certification to participate in Medicare until the
intermediary has determined that the operating entity meets the requirements
for participation and the survey agency has certified that the facility meets
the requirements. The effective date of certification may be no earlier than
the date on which both requirements were satisfied. Therefore, CMS acted properly
in determining the certification date for a medical center, and judgment was
entered in favor of the agency as a matter of law. The provider's detrimental
reliance on any statements that employees of the survey agency may have made
to the provider's representatives could not be considered because the administrative
law judge has no authority to consider equitable estoppel. Physicians
Medical Center of Santa Fe, LLC v. CMS, HHS Departmental Appeals
Board, Civil Remedies Division, Doc. No. C-07-679, Dec. No. CR1790, May 13,
2008, ¶121,378.
Premium content
ESRD compliance
CMS' determination
to terminate an end stage renal disease (ESRD) facility from the Medicare
program was sustained because the ESRD failed to conduct quality improvement
activities, as required by 42 C.F.R. §405.2134, and for failing to implement goals of the
ESRD network of which it was a member. An on-site review and two off-site
reviews of a random sampling of patient charts found the ESRD's most egregious
failure to pursue network goals was its failure to deal with excessive medication
errors and failures to follow physician's orders. The ESRD failed to: (1)
dialyze a patient for the proper amount of time as ordered by the physician;
(2) give patients the correct medication or correct dosage of medication;
(3) administer antibiotics properly; (4) intervene in dangerous medical situations;
and (5) maintain accurate treatment records and care plans. The number of
medication errors reflect a systemic, serious problem. The ESRD failed to
engage in continuous quality improvements (CQI) to deal with these problems.
In addition, the ESRD had ambiguous and multiple policies on the same subject
that were not address by a CQI plan. CMS had enough evidence to terminate
the ESRD facility from the program and to deny payment for all services furnished
to patients was proper. Under 42 C.F.R. §405.2180(a), failure by an ESRD supplier to comply
with even one condition of participation authorizes CMS to terminate that
supplier's participation in the Medicare program. Optimal Care Dialysis,
CCN: 23–2595 v. CMS, HHS Departmental Appeals Board, Civil
Remedies Division, Doc. No. Doc. No. C-05–474 and C-06–310, Dec.
No. CR1792, May 28, 2008, ¶121,380.
Premium content
Exclusion
The Inspector General (IG)
properly excluded a doctor from participation in Medicare, Medicaid, and all
other federal health care programs based on conviction for a criminal offense
related to the delivery of a health care item or service under the Medicare
or state health program. The doctor was convicted of one count of health care
fraud and excluded from the program for a minimum of five years with an additional
five years added for aggravating factors pursuant to Soc. Sec. Act § 1128(a)(1)and 42 C.F.R. §1001.102(b)(1), (2) and (5). The additional five years
were for the presence of aggravating factors, including: (1) the restitution
of $63,332.14 payable to the federal health care program, reflecting the amount
of damages to the program; (2) conduct spanning more than eight years; and
(3) incarceration. The Departmental Appeals Board held there was a proper
basis for his exclusion, and the presence of aggravating factors and no mitigating
factors, warrant the extension of the exclusion by five years for a total
exclusion period of ten years. Franklin v. Inspector General,
HHS Departmental Appeals Board, Civil Remedies Division, Doc. No. C-08–40,
Dec. No. CR1791, May 19, 2008, ¶121,379.
Premium content
Exclusion
The Inspector General (IG)
properly excluded a pharmacy intern from participation in Medicare, Medicaid,
and all other federal health care programs based on a felony conviction for
a criminal offense related to the delivery of a health care item or service.
The pharmacy intern stole drugs from the pharmacy for her own personal use.
The pharmacy intern pled guilty to six counts of felony theft by deception
and was excluded from participating in the program for a minimum of five years
as required by Soc. Sec. Act § 1128(a)(3); and 42 C.F.R. §1001.101(c).The pharmacy intern
argued that she committed no crime with respect to the delivery of a health
care item because the drugs were store property that had not been prescribed
to a patient and she had kept them for her own personal use. To accept her
argument would mean that pharmacies obtain and stock pharmaceuticals for purposes
other than delivery to customers. Timkovick v. Inspector General,
HHS Departmental Appeals Board, Civil Remedies Division, Doc. No. C-08–259,
Dec. No. CR1793, May 27, 2008, ¶121,381.
Premium content
Exclusion
The Inspector General (IG)
properly excluded a doctor from participation in Medicare, Medicaid, and all
other federal health care programs based on conviction of a criminal offense
related to the delivery of a health care item or service under the Medicaid
program. The doctor plead guilty to a felony relating to the manufacture,
distribution, dispensing or prescription of a controlled substance, by knowingly
making a false statement that he had a Drug Enforcement Administration registration
number which enabled him to write a prescription for a controlled substance,
when in fact, he did not. The doctor's hearing request is not being dismissed,
because he could come back to the Department of Appeals Board (DAB) at a later
date and seek reinstatement if appeal of his conviction is successful. The
doctor is arguing in his appeal that his conviction should have been a misdemeanor,
and not a felony, which would not include the mandatory five year exclusion
provision. Exclusion of the doctor is mandated by Soc. Sec. Act §1128(a)(4)and Soc. Sec. Act §1128(c)(3)(B)
, which states any individual convicted of a felony must be excluded
for a minimum period of five years. Hoxie v. Inspector General,
HHS Departmental Appeals Board, Civil Remedies Division, Doc. No. C-08–272,
Dec. No. CR1794, May 30, 2008, ¶121,382.
Premium content
Immediate jeopardy
Civil money penalties
(CMPs) of $4,000 per day and $300 per day were appropriate for a skilled nursing
facility (SNF) that failed to provide the highest level of practicable physical,
mental and psychosocial care and pharmaceutical services to meet the needs
of each resident under 42 C.F.R. §§483.25and 483.60, respectively.
A resident was admitted to the facility with multiple diagnoses of respiratory
failure, sleep apnea, cervical stenosis and diabetes. Although a physician
had ordered pain tablets to be administered to the resident on a daily basis,
the SNF did not have the medication on hand. The SNF substituted the prescription
with a different pain tablet, without permission of the physician. The facility
also failed to notify the physician and responsible party of a second resident's
change in condition, after discovering the resident in his room shaking uncontrollably
and unresponsive. The resident's family was not contacted until the resident
was transported from the SNF to a hospital 12 hours later in the day. The
imposition of CMPs for failure to provide resident's with a level of care
and service under federal regulations was reasonable and proper.
Universal Healthcare v. CMS, HHS Departmental Appeals Board, Civil
Remedies Division, Doc. No. C-06-227, Dec. No. CR1784, May 6, 2008, ¶121,374.
Premium content
Immediate jeopardy
An immediate jeopardy
finding was established by evidence that a certified nurse assistant (CNA)
did not respond properly to an emergency. The CNA found a resident who had
fallen out of his wheelchair and was being strangled by a seat belt around
his neck. After trying for an undetermined period to remove the belt, the
CNA left the patient alone while she looked for help. Although CMS did not
establish the length of time that the patient was left unattended, the burden
was on the facility to prove that its response was appropriate. The evidence
that several patients were equipped with bed alarms and/or chair alarms that
did not function established substantial noncompliance with the requirements
of 42 C.F.R. §§483.70(c)(2)and 483.25(h)(2)that all equipment related to patient
care be maintained in safe operating condition and that residents receive
adequate supervision and assistive devices to prevent accidents. CMS' findings
of one day of immediate jeopardy and 18 days of substantial noncompliance
were not clearly erroneous, and imposition of civil money penalties $50 above
the minimum for immediate jeopardy and at the minimum level for the remaining
days was reasonable. JFK Hardwyck at Oak Tree v. CMS, HHS
Departmental Appeals Board, Civil Remedies Division, Doc. No. C-06-167, Dec.
No. CR1788, May 13, 2008, ¶121,377.
Premium content
Immediate jeopardy
The findings that
a skilled nursing facility (SNF) was in substantial compliance with program
participation requirement was reversed due to the administrative law judge's
(ALJ's) failure to consider that the SNF had already admitted its noncompliance
to program requirements in a stipulation. The SNF stipulated to the following
facts during the ALJ's hearing and agreed that it was not in substantial compliance
with the quality of care requirements when it failed to: (1) supervise a cognitively
impaired resident from hurting himself; (2) ensure nurses' aides had completed
or enrolled in a nurse aide training program; (3) ensure that a resident maintained
adequate nutritional status; (4) provide sufficient fluid intake for residents
to maintain proper hydration and health; and (5) meet the dietary services
requirements. These admissions were enough to find immediate jeopardy and
impose a civil money penalty (CMP) of $3050 per day for February 3, 2004 through
February 10, 2004, and a CMP of $200 a day, for February 11, 2004 to February
26, 2004.
The SNF would not have been in compliance even if these items were resolved
because the SNF did not comply with 42 C.F.R. §483.25, which states that each resident
must receive and the facility must provide the necessary care and services
to attain or maintain the highest practicable physical, mental and psychosocial
well-being, in accordance with the comprehensive assessment and plan of care.
The SNF failed to: (1) notify the physician of a resident's significant weight-loss;
(2) conduct nutritional assessments; (3) monitor and document the resident's
food intake; (4) document the resident's status, and the care and services
provided; and (4) adequately plan for the resident's care. Sheridan
Health Care Center v. CMS, HHS Departmental Appeals Board, Appellate
Division, Doc. No. A-08–18, Dec. No. 2178, June 2, 2008, ¶121,373.
Premium content
Revocation of billing privileges
Medicare
enrollment and billing privileges were properly revoked for a physician who
had been found guilty of mail fraud and filing false tax returns within the
10 years preceding his enrollment or revalidation of enrollment in Medicare,
and the revocation was not barred by the doctrine of equitable estoppel. Pursuant
to Soc. Sec. Act §1866(b)(2)(D), if a provider or supplier is convicted
of a federal or state felony, CMS may revoke billings privileges. CMS considers
financial crime such as income tax evasion or other similar crimes to be detrimental
to Medicare. The physician argued that CMS was estopped from revoking his
billing privileges because he received a letter from the inspector general
(IG) dated December 18, 2002, informing him that a prior action to exclude
him did not meet statutory requirements. The physician argued that because
CMS and the IG are both a part of HHS that CMS is estopped from revoking his
Medicare enrollment because of the IG's prior determination. Under the doctrine
of equitable estoppel, the party asserting estoppel must show that he or she
relied upon the act of the government employee to his or her detriment. The
physician failed to show that building up his Medicare practice and accepting
Medicare payments from 2002, until he was terminated from the program in 2007,
caused him any injury. Also, the physician's ignorance to the fact that CMS
could exclude him from the program was not an applicable defense. Under federal
law, estoppel will not lie against the government in cases that involve funds
paid from the Treasury, like Medicare. The doctrine of equitable estoppel
is only available if the party asserting estoppel relied to his or her detriment
upon the conduct of the party against whom estoppel is asserted.
Rojas v. CMS, HHS Departmental Appeals Board, Civil Remedies Division,
Doc. Doc. No. C-08-78, Dec. No. CR1797, June 2, 2008, ¶121,384.
Premium content
Substantial noncompliance
Civil money
penalties (CMP) ranging from $200 per day for more than a week to a $4000
CMP for one day for immediate jeopardy noncompliance were proper for a skilled
nursing facility (SNF) that failed to implement necessary precautions to prevent
a resident from rolling out of a shower bed and suffering injuries that resulted
in her death two days later. The bed was a device that enabled SNF staff to
transfer bedridden residents from their beds into the facility's shower area.
This level of immediate jeopardy was eliminated after January 29, 2007, when
SNF management and staff implemented effective measures to prevent the injuries
during bathing. Due to other findings of substantial noncompliance, CMS had
the discretion to issue a denial of payment for new Medicare admissions between
February 25 to March 1, 2007. Cogburn Nursing Center - Huntsville
v. CMS, HHS Departmental Appeals Board, Civil Remedies Division,
Doc. No. C-07-375, Dec. No. CR1798, June 3, 2008, ¶121,385.
Premium content
Untimely filing of claims
Denial of
federal financial participation (FFP) reimbursement was proper after the state
health agency failed to timely file claims and establish that it met the exception
to the two-year filing requirement. CMS disallowed $5,627,497 of reimbursement
for costs of administering the state's Early and Periodic Screening, Diagnosis,
and Treatment (EPSDT) program. The state's public school districts helped
to administer the EPSDT program and were reimbursed by the state health agency
for incurred costs. In November 2004, the state health agency filed a claim
seeking FFP for EPSDT administrative costs incurred between October 1999 and
August 2002. Under Soc. Sec. Act §1132(a), administrative costs associated with an
FFP claim must be made within two years after the relevant program “
expenditures” were made. Exceptions to section 1132 include “
adjustments to prior year costs.” However, an adjustment is only considered
when the amount of a particular cost item was claimed under an “interim
rate concept.” There was no retrospective adjustment of interim payment
rates for medical or other services during this period, therefore no exception
applied. Nebraska Department of Health and Human Services,
HHS Departmental Appeals Board, Appellate Division, Doc. No. A-07-57, Dec.
No. 2177, May 30, 2008, ¶121,372.
Premium content
PRRB Decisions
Asset loss on transfer
The intermediary's
adjustment disallowing the loss on the disposition of appreciable assets through
a consolidation was upheld. The provider is a general acute care hospital
consolidated with another corporation to create a new not-for-profit entity.
For a gain or a loss to be realized, the consolidation must have occurred
between two parties not related per 42 C.F.R. §413.17. The test of common ownership
and control are to be applied separately, before and after the transaction.
The new corporation maintained extensive powers over the hospital's assets
before and after the consolidation, and the relationship between the hospital
and its new parent corporation had not changed. The governing bodies and executive
boards of both entities continued to operate after the consolidation, the
same as they did prior to the consolidation. Also, the transfer of assets
to the new corporation did not constitute consideration under a bona fide
sale, as stated in section §104.24 of the Provider Reimbursement Manual
(PRM). Total assets were at least twice the value of liabilities. There was
no actual loss on disposal of assets to be claimed and the disallowance by
the intermediary was proper. PRRB Hearing, Dec. No. 2008–D18,
Mercy Center for Health Care Services v. BlueCross BlueShield Association/AdminaStar
Federal, Inc., April 15, 2008, ¶81,907.
Premium content
|
 |
|
|
|
|
|
|
Subscribe to NetNews
|
|
|
Receive the NetNews newsletters via e-mail and to stay up-to-date on all the latest developments.
|
|
About
This Newsletter
|
|
|
To access the IntelliConnect™ full text documents you must be a subscriber to
the Medicare
and Medicaid Guide and the Reimbursement
Integrated Library IntelliConnect product
(depending on the link).*
Links within news stories display full text documents including legislation, regulations, court decisions, rulings and government reports.
The first time you click on a link you will be
taken to the IntelliConnect login
page, where you will need to enter your ID and
password. Subsequent links will take you directly to
the desired document. |
|
Want to Subscribe?
|
|
|
If you aren't a subscriber to the Medicare and Medicaid Guide or the
Reimbursement Integrated Library, call 800-449-9525 or let
us contact you to receieve a free trial to allow you to click on
the links within the news stories and see the full text documents. |
|