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HEADLINES
from Medicare and Medicaid Guide
Monday, October 19, 2009

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.

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Reimbursement Integrated Library

Reimbursement Advisor

Dennis Barry’s Reimbursement Advisor

September 2009, Volume 25, No. 1

In the September 2009 issue of Dennis Barry’s Reimbursement Advisor, authors examine Medicare overpayment determinations, bad debts and charity care and coverage for emergency dialysis services, as well as Medicaid regulations initiated in the Bush administration that remain proposed or delayed.
  • Emergency dialysis services and Medicare coverage: CMS policy revision attempts to resolve EMTALA conflict.
    There are situations when end-stage renal disease (SRD) patients need renal dialysis on an emergency basis, which raises payment issues due to conflicts between Medicare payment policy for dialysis services and federal mandates to provide emergency patients with stabilizing care. This article takes a closer look at CMS’s 2002 policy revision in its attempt to address these issues and how that policy, in some instances, comes up short.
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Receivables Report

Receivables Report

October 2009, Volume 24, No. 10
  • Hospitals Changing to Survive. A recent survey of hospitals by the American Hospital Association shows that 90 percent of hospitals taking part in the survey were making some kind of changes to cope with the economy. Eighty percent have cut administrative expenses and 48 percent have reduced staff. The truth is that most hospitals have had to make some cutbacks and some program modifications. Many have outsourced certain services, too. In the October Receivables Report we examine some of those changes.
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    HARA

    Hospital Accounts Receivable Analysis

    1st Quarter 2009, vol. 23, no. 2
    • Fewer Open Accounts Per FTE. Business office FTEs handled 2,731.52 open accounts in the first quarter of 2009. This was a drop from the figure reported at the end of last year when hospitals reported a mean figure of 4,010.09 open accounts per business office FTE. This may also be a reflection of industry trends, which have been showing a drop-off in patients during recent months.
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    Headlines
    from Medicare and Medicaid Guide

    New rules protect patients' genetic information

    The genetic information of patients will have greater protections through new regulations issued on October 1, 2009, by the U.S. Departments of Health and Human Services (HHS), Labor, and the Treasury. The Interim final rule will help ensure that genetic information is not used adversely in determining health care coverage and will encourage more individuals to participate in genetic testing, which can help better identify and prevent certain illnesses. The Interim final rules with request for comments were issued jointly by the three federal agencies and a separate notice of proposed rulemaking from HHS implements Title I of the Genetic Information Nondiscrimination Act of 2008 (GINA).

    Under GINA, and the Interim final rule, group health plans and issuers in the group market cannot: (1) increase premiums for the group based on the results of one enrollee's genetic information; (2) deny enrollment; (3) impose pre-existing condition exclusions; or (4) do other forms of underwriting based on genetic information. In the individual health insurance market, GINA prohibits issuers from using genetic information to deny coverage, raise premiums, or impose pre-existing condition exclusions.

    Further, under GINA and the new interim final regulations, group health plans and health insurance issuers in both the group and individual markets cannot request, require, or buy genetic information for underwriting purposes or prior to and in connection with enrollment. Plans and issuers are generally prohibited from asking individuals or family members to undergo a genetic test. The interim final regulations from HHS are effective on December 7, 2009, and comments from the public are due on or before January 5, 2010.

    HHS proposed rule

    HHS, through its Office for Civil Rights (OCR), issued a notice of proposed rulemaking with a 60-day comment period, to propose changes to the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule to prohibit health plans from using or disclosing genetic information for underwriting purposes. Comments on the proposed rule are due by December 7, 2009.

    HHS Press Release, Oct. 1, 2009; Interim final rules with request for comments, 74 FR 51664, Oct. 7, 2009, ¶180,982;
    Proposed rule, 74 FR 51698, Oct. 7, 2009, ¶220,754.

    Baucus sees 60 plus votes for health reform

    Senate Finance Committee Chairman Max Baucus (D-Mont.) said that he believed all Senate Democrats plus a possible handful of Republicans will vote for the massive health reform bill currently being forged by Democratic leaders and White House officials. At the same time Senate Majority Leader Harry Reid (D-Nev.) revealed that he has held private meetings with a few Republican lawmakers, fueling speculation that Sen. Susan Collins (R-Maine) and possibly one or two other GOP senators are leaning towards supporting the bill.

    "The overriding goal is healthcare reform and that's going to trump everything," said Baucus following a Senate Democratic Caucus meeting to discuss the merger of the two separate bills approved by the Senate's Finance and Health, Education, Labor and Pensions Committees.

    The three Senate leaders Reid, Baucus, and Sen. Christopher J. Dodd (D-Conn) met for the second time on Oct. 15 with White House officials to discuss the details of the merger. Reid said there would be no more meetings until Oct. 19 although staff members would continue working through the weekend. Reid has said he expects that Senate debate would begin by the end of the month.

    The Senate Finance Committee on October 13 approved by a 14-9 margin an $829 billion healthcare proposal that drew the support of one Republican and all Democrats on the Committee. The Congressional Budget Office's analysis of the Senate Finance Committee's amended proposal for the America's Healthy Future Act of 2009 reported in report 1581, is reproduced with this report; see ¶53,162.

    House action

    On the House side, Speaker Nancy Pelosi (D-Calif), told reporters on October 15 that she had submitted the House version of the health care reform bill to the Congressional Budget Office for scoring. Pelosi said she expects that the final House bill would include a strong public option and that House lawmakers would seek to keep that provision in the bill that emerges from conference with the Senate.

    In a separate action, the House Ways and Means Committee formally sent a copy of the America's Affordable Health Choices Act of 2009 (HR 3200) to the House Budget Committee with reconciliation instructions. Republican lawmakers said the committee action was designed to preserve the opportunity to move health reform legislation as part of the budget reconciliation process.

    CCH Washington Bureau, Oct . 15, 2009.

    Classification of beds by Secretary was abuse of discretion

    The Secretary of HHS abused his discretion and acted arbitrarily and capriciously in classifying certain beds as available for indirect medical education (IME) reimbursement purposes, according to a U.S. District Court. The hospital disagreed with the method used by the Secretary to compute its IME adjustment.

    The hospital, owned by Los Angeles County and eligible to receive Medicare IME payments, reported 246 beds on its cost report, although it was licensed for 537 beds. The reported number was determined by a walk-through of the facility. The fiscal intermediary, following a physical inspection, increased the number to 382. The intermediary and the hospital reached a stipulation reducing the number of beds at issue to 49: 18 beds in storage rooms, 17 beds in on-call rooms, and 14 beds in closed units. During a hearing before the Provider Reimbursement Review Board, all but 29 of the beds at issue were resolved, 18 beds located in storage rooms, and 11 in closed units.

    To be defined as an "available bed" under 42 C.F.R. §412.105, it must be able to be "immediately" opened and occupied. The Provider Reimbursement Manual mandates that a bed be permanently maintained for lodging inpatients, but an administrative bulletin issued by the Blue Cross and Blue Shield Association expands the requirement by insisting that the "beds can be adequately covered by [nurses]," allowing as much as 24 to 48 hours to get nurses on duty. The court determined that the Secretary failed to consider the changing capacity of the hospital since the space where the 18 beds were located would not be available for routine care but rather, was needed for storage. With regard to the 11 beds located in closed wings of the hospital, the Secretary failed to consider that these beds could not be adequately staffed within 24 to 48 hours.

    County of Los Angeles v. Leavitt, C.D. Cal., July 8, 2008, ¶303,139.

    Fraudulent payments for controlled substances preventable

    Medicaid spending for controlled substances is vulnerable to fraud and abuse, according to a recent study by the Government Accountability Office (GAO). The agency studied Medicaid expenditures for federal fiscal years (FY) 2006 and 2007 in five states: California, Illinois, New York, North Carolina and Texas, focusing on ten controlled substances. The drugs included pain relievers such as morphine, methadone, oxycodone and hydrocodone, benzodiazepine sedatives and stimulants. Most of the drugs were included on the list of Class II controlled substances maintained by the Drug Enforcement Administration (DEA). Class II are defined as drugs having currently accepted medical uses, but also have a high potential for physical abuse, which may lead to addiction or psychological dependence.

    Types and frequency of fraud and abuse

    GAO studied three types of fraud or abuse: (1) "doctor shopping," or visits to multiple physicians to obtain overlapping prescriptions for the same type of drug; (2) prescriptions filled for deceased beneficiaries or "written" by deceased doctors; and (3) prescriptions written by providers who were excluded from participation in Medicare and Medicaid. In addition to the reviews of expenditures in all five states, GAO studied 25 particular cases in depth. The investigation revealed two additional types of abuse involving practitioners: over prescribing controlled substances to specific beneficiaries and prescribing substances for which the practitioner did not have a DEA authorization.

    Doctor shopping was the most common type of fraud or abuse. During the period studied, about 65,000 beneficiaries received prescriptions for the same drug(s) from six or more practitioners, often for overlapping periods of time. Beneficiaries obtained the drugs to feed addictions, sell them on the street, or both. One parent, addicted to stimulants, obtained multiple, overlapping prescriptions for her child, who had attention deficit hyperactivity disorder, from several physicians. About 400 beneficiaries received prescriptions from between 21 and 112 different practitioners and filled them at as many as 46 different pharmacies during the two years studied. The states' data systems had not identified most of the recipients who were doctor shopping or using excessive services.

    GAO noted that these beneficiaries comprised less than 1 percent of the total number of Medicaid beneficiaries in the five states. The $63 million spent on these questionable prescriptions represents about 6 percent of the spending on the ten controlled substances studied. In testimony before Congress, Gregory D. Kutz, GAO's Managing Director Forensic Audits and Special Investigations, noted that the estimated costs of doctor shopping are understated for three reasons: (1) only the payment for the drugs is included, so that the costs of related physician, emergency room or other services is unknown; (2) unidentified prescribers are not counted; and (3) GAO studied only ten of the most widely abused drugs, not all controlled substances.

    GAO found that prescriptions were written and filled for about 1,800 deceased beneficiaries, at a cost to Medicaid of about $200,000. Prescriptions were written in the names of about 1,200 deceased physicians, for which Medicaid paid about $500,000.

    Payments to banned providers

    According to GAO, 65 practitioners and pharmacies wrote or filled prescriptions while they were excluded from participation in Medicaid for fraud or diversion of controlled substances. Medicaid approved the claims at a cost of $2.3 million. During the period under study, none of the five states checked the list of excluded providers to prevent these improper payments. The number of banned practitioners may actually be higher because states paid claims that either did not identify the prescribing physician or did not include a tax identification number.

    GAO's recommendations

    GAO recommends that CMS provide guidance to enable states to adopt a comprehensive fraud control program for prevention, detection, and monitoring, as well as investigation and prosecution. The preventive controls would include data sharing among organizations or agencies and "system edits" that automatically bar processing of claims by excluded providers or entities debarred from federal contracts. The system would make periodic checks of death records such as the Social Security Administration's Death Master Files to detect and stop payment for prescriptions filled for or written in the name of someone who is dead. System edits also would be used to detect duplicate enrollment, continuation of enrollment after death, and doctor shopping. Agencies also should increase their drug utilization review and impose restrictions on beneficiaries' access to multiple providers to prevent doctor shopping. The GAO believes prosecution of fraud is hampered by federal regulations that give Medicaid Fraud Control Units very limited authority to pursue beneficiary fraud and ban use of federal funds for routine screening activities.

    GAO Report, No. 09-957, Sept. 30, 2009; Testimony of Gregory D. Kutz, Managing Director Forensic Audits and Special Investigations, No. GAO-09-1004T, Sept. 30, 2009.

    Slow progress in improving children's access to dental care

    State Medicaid programs (including the District of Columbia) have improved children's access to dental care since May 2007, but fell short of goals, according to a study by the Government Accountability Office (GAO). In a survey of all 51 state Medicaid programs, GAO examined the extent to which children on Medicaid received preventive dental care or any dental services at all, the actions that states took to improve access, the monitoring and maintenance of information needed to determine effectiveness and the barriers to further improvement. GAO also examined CMS' oversight of states' compliance with the goals and requirements for Medicaid dental services.

    Too few providers

    Children seeking dental services continue to face the same obstacles; the most common major barrier continues to be difficulty finding a dentist who will accept new Medicaid patients. Forty-nine states reported that the lack of available providers was a barrier to children's access to care. Distance to the nearest available provider and difficulty obtaining transportation also were common problems.

    State Medicaid programs have taken a variety of actions to recruit and retain more dentists, including raising reimbursement rates, streamlining the billing and payment process, easing prior authorization requirements and meeting with dental provider groups to encourage them to serve more children on Medicaid. Some states also work with other agencies that provide scholarships or loans in return for a commitment to serve low-income patients.

    Dental providers report additional barriers that discourage their participation, particularly Medicaid patients missing appointments. The government's response is that Medicaid can only pay for services provided. Failure to follow a recommended treatment plan also was reported.

    Medicaid agencies also have increased access by expanding services at other locations, for example, encouraging and paying for physicians to apply sealants, increasing funding for more staff positions at clinics and providing some dental services at schools.

    State agencies reported that parents often did not seek dental care for their children because of a lack of awareness of oral health and the risks of untreated tooth decay. Forty-eight states engaged in some form of outreach and education to eligible children and their parents in order to address this problem. These actions included publishing literature on the importance of oral health, translating it into other languages and putting it on a web site, maintaining current lists of participating dentists, and providing incentives for parents to take their children to the dentist. States working with managed care organizations (MCOs) required the MCO to provide education and to assist in arranging for dental care.

    GAO Report, No. GAO-09-723, Sept. 30, 2009; GAO Testimony, No. GAO-10-112T, Oct. 7, 2009.
    Decisions and Developments
    CMS Manuals

    Verification status for all hospitals qualifying for disproportionate share hospital payments under the "Pickle Amendment"

    Medicare Claims Processing Manual, Pub. 100-04, Transmittal No. 1828, Oct. 9, 2009, ¶158,481.

    Office of Inspector General reports with medical review implications to prevent improper payment of questionable claims

    One-Time Notification Manual, Pub. 100-20, Transmittal No. 574, Oct. 9, 2009, ¶158,483.

    Implementation of HIPAA version 005010 flat files institutional (837I) and inbound 837 professional (837P)

    One-Time Notification Manual, Pub. 100-20, Transmittal No. 575, Oct. 9, 2009, ¶158,484.

    2010 update to the file layout for the Medicare physician fee schedule database

    Medicare Claims Processing Manual, Pub. 100-04, Transmittal No. 1825, Oct. 8, 2009, ¶158,479.

    Instructions for retrieving the 2010 pricing and Healthcare Common Procedure Code reporting system data files

    Medicare Claims Processing Manual, Pub. 100-04, Transmittal No. 1826, Oct. 9, 2009, ¶158,480.

    Inclusion of the physician speciality code for geriatric psychiatry to the Contractor Reporting of Operational and Workload Data Form F

    Medicare Financial Management Manual, Pub. 100-06, Transmittal No. 159, Oct. 9, 2009, ¶158,482.


    DAB Decisions

    Provider's right to appeal termination

    A hospital's request for a hearing was properly dismissed because CMS withdrew its proposed sanction of terminateing hospital's provider agreement. The hospital filed a request for an administrative law judge (ALJ) hearing to appeal the findings and conclusions set forth in a survey of deficiencies (SOD). The hospital complained that the SOD contained factual inaccuracies that caused tangible harm to the hospital. An ALJ may dismiss a hearing request if the party requesting the hearing has no right to a hearing, 42 C.F.R. 498.70(b). A finding that a hospital accredited by the Joint Commission on Accreditation of Hospitals (JCAHO) is not in compliance with Medicare conditions of participation or a finding that the hospital is no longer deemed to meet the conditions of participation is not an "initial determination subject to review under 42 C.F.R. 498.3(d).

    The regulations made clear that a JCAHO hospital has no right to an ALJ hearing solely to contest findings of noncompliance, such as those set forth in a SOD, when a proposed termination has been rescinded. Although the hospital argued that the ALJ decision violated its procedural due process rights, it is well established that administrative forums do not have the authority to ignore unambiguous statutes or regulations on the basis that they are unconstitutional. The ALJ's dismissal of the hospital's request was affirmed.

    Florida Health Sciences Center, Inc. d/b/a Tampa General Hospital v. CMS, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-84, Dec. No. 2263, July 29, 2009, ¶121,901.

    SNF noncompliance

    Substantial evidence supports the finding of the administrative law judge (ALJ) that a skilled nursing facility (SNF) was not in substantial compliance with Medicare participation requirements and that the SNF's noncompliance posed an immediate jeopardy when the SNF, among other things, failed to ensure that one of the residents received necessary treatment for her pressure sores. The SNF's request to add expert witness testimony not presented to the ALJ was denied because the SNF could not provide good cause for failing to do so in the earlier proceeding. The SNF was noncompliant with 42 C.F.R. §483.10(b)(11) when it failed to immediately consult with the resident's physician after the resident developed numerous pressure sores, including a stage II pressure sore that had deteriorated. The SNF was also noncompliant with 42 C.F.R. §483.25(c) in its care of the resident, when it failed to ensure pressure sore healing and prevention. For example, when the resident's pressure sore had grown larger and other pressure sores developed despite various interventions, the SNF failed to determine the reasons and consult with the doctor. Instead the SNF merely continued with the prescribed intervention.

    The SNF was also noncompliant with 42 C.F.R. §483.75 which required it to use its resources effectively to maintain the well-being of its residents.

    A violation of §483.75 may be derived from the finding that it was noncompliant with other participation requirements, such as its violations of §§483.10(b)(11) and 483.25(c). Finally, the SNF's noncompliance posed an immediate jeopardy given that its inattention to the resident's pressure sores was likely to seriously harm the resident.

    Stone County Nursing & Rehabilitation Center, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-90, Dec. No. 2276, Oct. 1, 2009, ¶121,910.

    SNF requirements

    An administrative law judge's (ALJ) decision sustaining the imposition of civil money penalties (CMPs) against a skilled nursing facility, based on allegations of resident abuse by a certified nurse assistant (CNA), failed to consider all the evidence presented in the light most favorable to the facility. During a survey of the facility, the state survey agency found that the SNF was not in compliance with 14 SNF conditions of participation, including three rising to the immediate jeopardy level.

    Following the facility's appeal, CMS moved for summary judgment, which was granted by the ALJ with regard to some of the resident abuse findings under 42 C.F.R. §483.13(b). An ALJ is required to review and consider all of the proffered evidence when considering whether a genuine issue of material fact exists. While the ALJ claimed to have considered all evidence presented by CMS and the SNF, from the ALJ's decision, it appears that he relied only on factual assertions contained in briefings. Further, he cited mainly CMS' exhibits and only one exhibit submitted by the SNF and the resulting tone of the decision shows that the exhibits were not used merely for purposes of illustration."

    The ALJ also gave differing weights to the evidence presented, considering that he recited CMS' allegations regarding the incidents in question in his decision. A reasonable trier of fact would have considered all the evidence presented and would have viewed the allegations in the light most favorable to the SNF. Summary judgment was vacated and the case remanded to the ALJ for further proceedings.

    Illinois Knights Templar Home v. CMS, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-71, Dec. No. 2274, Sept. 30, 2009, ¶121,908.

    Civil money penalties

    A skilled nursing facility (SNF) failed to adequately supervise a resident and remove all foreseeable harm when a resident choked to death after consuming food. A facility is required to take all reasonable steps to ensure that a resident receives supervision that meets her assessed needs to mitigate foreseeable risks of harm, according to the regulations at 42 C.F.R. 483.25(h). The SNF argued the administrative law judge (ALJ) had disregarded Provider Reimbursement Review Board and court decisions that gives facilities "the flexibility to choose the methods of supervision" to prevent accidents as long as the methods chosen are consistent with the resident's needs.

    In this case, a cognitively impaired resident with a high risk for difficulty in swallowing was under a doctor's orders not to consume food or liquids. The SNF was well aware of the nothing by mouth order, yet the staff did little to monitor or stop the resident from consuming food and drinks. The SNF was not required to implement particular interventions but the SNF staff could have done more to protect the resident. In addition, the resident was not provided adequate supervision to prevent the accident that killed her. The ALJ's finding of immediate jeopardy, the imposition of civil money penalties, and the suspension of the SNF's authority to conduct a nurse aid training and competency program was supported by substantial evidence. The findings of the ALJ were affirmed.

    Meridian Nursing Center v. CMS, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-82, Dec. No. 2265, Aug. 12, 2009, ¶121,902.

    Inadequate supervision

    The administrative law judge (ALJ) properly ruled that a skilled nursing facility (SNF) violated the requirement of 42 C.F.R. §483.25(h) to provide adequate supervision and devices to prevent accidents and that the violation posed immediate jeopardy to a resident. The SNF had assessed the resident as at high risk for falls and was aware that a fall could result in serious injury or death. The ALJ's error describing the alarm removed by the SNF was not material because the noncompliance arose from the SNF's failure to respond to the resident's risky behavior after the removal. The ALJ's statement that a finding of immediate jeopardy was not necessary to support the penalty was immaterial because the ALJ addressed each element and found immediate jeopardy. Because of the immediate jeopardy finding, the two-year prohibition of the SNF's nurse aide training and competency evaluation program was legally required.

    Plum City Care Center v. CMS, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-95, Dec. No. 2272, Sept. 29, 2009, ¶121,906.

    Pressure sore prevention

    The administrative law judge (ALJ) correctly ruled that the skilled nursing facility (SNF) violated the requirement of 42 C.F.R. §483.25(c) to provide necessary treatment and services to treat pressure sores to promote healing and prevent new sores from developing and that the violation posed immediate jeopardy to residents. The SNF failed to: (1) follow the orders of the residents' physicians to apply medication and change dressings at specified intervals to treat stage IV pressure sores; (2) follow the physicians' orders to take specific measures to minimize the risk of development or expansion of pressure sores; (3) document the treatment or services provided; (4) inform the physicians when the residents developed new pressure sores or existing sores expanded; and (5) discuss proposed changes in the residents' plan of care.

    Columbus Nursing and Rehabilitation Center v. CMS, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-83, Dec. No. 2273, Sept. 29, 2009, ¶121,907.

    Effective date of FQHC certification

    The administrative law judge properly determined that the effective date of three permanent units of a federally qualified health center's (FQHC) enrollment in Medicare was May 2, 2007, the date on which CMS accepted the FQHC's signed Medicare participation agreement. CMS argued that the effective enrollment date was no sooner than that date, because until then, CMS had not approved the units' application.

    The FQHC opened its permanent units in 1994, 1996 and 2000, and consequently obtained changes to its grant under the Public Health Services Act for each unit. For these and other reasons, the FQHC asserted that the three units were not new in 2007, and that therefore, the effective date for each of the FQHC's permanent units participation in the Medicare program was the corresponding date on which each unit was opened, not May 2, 2007.

    Under 42 C.F.R. 491.5(a)(3), however, the FQHC was required to have each of its permanent units independently considered for approval as FQHCs. It was not until 2007 that the FQHC requested CMS approval for the permanent units as Medicare FQHC locations and provided the regulatory assurances of compliance with Medicare FQHC requirements. Upon receipt of these requests and assurances in 2007, CMS accepted a signed agreement for the units and properly specified the effective date of participation as May 2, 2007.

    Waianae Coast Comprehensive Health Center, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-94, Dec. No. 2270, Sept. 28, 2009, ¶121,904.

    Date of ESRD enrollment

    The administrative law judge erred in holding that the effective date of enrollment for an end-stage renal disease (ESRD) supplier was the date the supplier's enrollment application was verified and approved by CMS, rather than the date the state survey agency completed its survey and found no deficiencies with respect to the ESRD supplier. Under 42 C.F.R. §489.13, the effective date of participation — i.e., the effective date of Medicare reimbursement — is the date the state survey agency completes its survey if the supplier meets all applicable federal requirements on that date. CMS failed to identify any applicable federal requirement that an ESRD's application must be approved by CMS or a contractor before an ESRD can be enrolled in Medicare. Nothing in either the wording or history of the enrollment regulations provided by CMS supported CMS' position that the verification and approval of the supplier's enrollment application was an applicable federal requirement for this type of provider.

    Renal CarePartners of Delray Beach, LLC, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-100, Dec. No. 2271, Sept. 28, 2009, ¶121,905.

    Revocation of billing privileges

    The administrative law judge (ALJ) properly revoked a physician's Medicare enrollment and billing privileges after he was convicted of a federal felony of conspiracy to defraud the U.S., by falsely certifying that applicants for U.S. citizenship were disabled. Although the crime was not explicitly listed in the regulations governing the revocation of enrollment and billing privileges, 42 C.F.R. §424.535(a)(3)(i), CMS found the crime to be detrimental because it was similar to financial crimes at 42 C.F.R. §424.535(a)(3)(i)(B) and involved dishonesty as well as fraud. CMS has discretion to determine which convictions will be the basis for denying enrollment or revalidation and an ALJ may not review that decision.

    Further, and despite the physician's arguments to the contrary, his other claims also failed because: (1) he received timely and adequate notice of the revocation determination; (2) CMS did not mislead the physician about the basis of the revocation; (3) his due process rights were not deprived; (4) revocation can be based on crimes not involving health care and solely on his felony conviction; and (5) the contractor had the authority to issue the revocation.

    Fayed v. CMS, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-65, Dec. No. 2266, Aug. 18, 2009, ¶121,903.

    Termination of provider agreement

    A home health agency failed to properly furnish the required skilled nursing services to patients under its care and the termination of its Medicare provider agreement was appropriate. A home health agency is required to provide skilled nursing services by a registered nurse (RN) who implements a plan of care, regularly evaluates the patient's needs, and furnish services, as stated in 42 C.F.R. §484.30. The home health agency argued the administrative law judge (ALJ) erred in concluding facts that sufficiently demonstrated it was out of compliance with the conditions of participation. The evidence showed: (1) a patient had a bandaged wound that required immediate care, but the RN declined to care for the wound until told to do so; and (2) another patient who had terminal lung cancer had his pain levels document by the RN at 8 and 10, 10 being the most severe, but the RN failed to immediately report this to his physician and did nothing to alleviate the patient's suffering. The ALJ had sufficient evidence to conclude the patients were either harmed or there was potential to harm the patients. The ALJ's decision was affirmed.

    Aspen Grove Home Health v. CMS, HHS Departmental Appeals Board, Appellate Division, Doc. No. A-09-62, Dec. No. 2275, Oct. 1, 2009,¶121,909.
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