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Hot Topics Impacting Hospital Payments 2014 Revenue Cycle Fall Workshop WV HFMA.

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Presentation on theme: "Hot Topics Impacting Hospital Payments 2014 Revenue Cycle Fall Workshop WV HFMA."— Presentation transcript:

1 Hot Topics Impacting Hospital Payments 2014 Revenue Cycle Fall Workshop WV HFMA

2 Hot Topics –Outpatient facility coding –Provider Based Changes –Critical Care –Emergency Department –Outpatient E&M Services –Medical Necessity –Midlevels –Modifiers –OP Clinical Diagnostic Lab Tests –Two Midnight Rule & Case Studies –ICD-10 Readiness 2

3 Hot Topics 3

4 Medicare Claims Medicare receives over 1.2 billion claims per year. This equates to:  4.6 million claims per work day, or  575,000 claims per hour  9,580 claims per minute  160 claims per second 4

5 OPPS rules continue to contain the information on adopting an internal policy that is indicative of the resources utilized by the hospital. No mention of the fact that payment is the same so frequency and distribution is irrelevant due to same payment. Best if chargemaster contains the CPT codes 99201- 99215 with a different charge at each level in order to maintain compliance with consistent charging to all payers. Most clients are choosing to flip the E&M code to the required G code within the system. G code is G0463. No changes per the 2015 OPPS proposed rule except as it relates to provider based locations placing a modifier. Outpatient Visit Coding (Facility) 5

6 Buried in the proposed rule is a small item addressing off-campus provider-based departments. CMS notes the increase in hospital acquisitions of physician practices and the increase in the delivery of physicians’ services in a hospital setting as the reasons for taking another look at the regulations. Specifically, CMS is proposing to collect this information beginning January 1, 2015, by requiring the use of a new HCPCS modifier that would be reported with every code for physician and outpatient hospital services furnished in an off-campus provider-based department of a hospital. The modifier would be reported on both the CMS-1500 claim form for physician services and the UB-04 form (CMS Form 1450) for hospital outpatient services. CMS is asking for additional public comment on whether the use of a modifier is the best mechanism for collecting this service-level data. Provider Based Rule Change 6

7 Emergency Department Critical Care Beginning in 2007, nurses must also document duration of critical care time in order to charge E/M 99291. (Less than 30 minutes of care does not support critical care) 99292: Code used for each 30 minutes beyond the 1 st hour. Remember – if it is not documented, it did not happen. 7

8 Emergency Department 8 Distribution of Technical Component (Facility) ED Codes 2012 2014

9 Emergency Department ED Treatment Rooms Do not bill E/M with drug administration charge when an infusion is the sole reason for the visit 2007 OPPS Final Rule – “Providers should bill a low- level visit code in such circumstances only if the hospital provides a significant, separately identifiable low level visit in association with the packaged service.” 9

10 Medical Necessity Medically Necessary means that a service, supply or medicine is necessary and appropriate and meets the standards of good medical practice in the medical community for the diagnosis or treatment of a covered illness or injury, as determined by the insurance company Review National Coverage Decisions (NCD) Review Local Medical Review Policies (LMRP) NCDs take precedence over LMRPs 10

11 Use of Mid-levels in Provider Based Clinics & Emergency Departments Prior to Provider Based Implementation –Incident – to under 42 CFR Section 410.26 (physician office rule) After Implementation –Incident – to – different rule 42 CFR Section 410.27 Midlevels in ED – Medicare requires bill under name of Midlevel unless “shared visit requirements are met” 11

12 Modifier -25 Significant, separately identifiable evaluation and management service by the same physician on the same day of the procedure or other service Use on E/M codes only Ask yourself “is the patient presenting with a chief complaint requiring evaluation to determine treatment?” Modifiers 12

13 Modifier -59 Procedure or service was distinct or independent from other services performed on the same day. Indicates that the procedure is not considered to be a component of another procedure, but instead is a distinct independent procedure. Guidance from CMS can be found at: Modifiers 13

14 Effective January 5, 2015 the new "more specific" modifiers (in place of modifier -59), include: XE Separate Encounter: A Service That Is Distinct Because It Occurred During A Separate Encounter XS Separate Structure: A Service That Is Distinct Because It Was Performed On A Separate Organ/Structure XP Separate Practitioner: A Service That Is Distinct Because It Was Performed By A Different Practitioner XU Unusual Non-Overlapping Service: The Use Of A Service That Is Distinct Because It Does Not Overlap Usual Components Of The Main Service. Modifier -59 Cont. 14

15 Per CMS instructions page 3 “As a default, at this time CMS will initially accept either a - 59 modifier OR a more selective - X{EPSU} modifier as correct coding, although the rapid migration of providers to the more selective modifiers is encouraged." However, please note that these modifiers are valid even before national edits are in place. MACs are not prohibited from requiring the use of selective modifiers in lieu of the general -59 modifier, when necessitated by local program integrity and compliance needs.” Modifier -59 Cont. 15

16 Question: We have a new cardiologist who orders an EKG before and after all his heart catheterization procedures and stress tests. He insists that we should be adding modifier -59 (distinct procedural service) to each of these because they are not done as part of the procedure. Our compliance office disagrees. Is it appropriate to add modifier -59 in this scenario? Modifier -59 Cont. 16

17 Answer: Is there a more appropriate modifier that can be appended to explain the situation –the answer would be no, as none of the anatomical modifiers or other modifiers—such as those for a repeat procedure—are applicable When a physician orders a cardiac procedure, typically there has been consideration or indications that there is a cardiac situation that needs to be evaluated –when the physician orders the EKG as part of the order set for the procedure, the EKGs are part of the procedure –No sign/symptom of a problem supports the medical necessity of reporting the procedure The EKG can be done, but should be reported as part of the cardiac procedure Modifier -59 Cont. 17

18 In the example when would the -59 apply? The patient has signs/symptoms of some issue occurring, such as chest pain after the cardiac procedure is over and wants to leave the facility –In that situation the test has a diagnostic purpose –The physician needs to know what the patient’s cardiac rhythm is to see what needs to be done to treat the chest pain –The EKG was performed for a reason separate and distinct from the reason/rationale for the cardiac procedure, and reporting the EKG with modifier -59 would be appropriate Modifier -59 Cont. 18

19 Over the past 15 years, CMS has refined its understanding of and commitment to OPPS as a prospective payment system and not as fee-schedule driven, with separate payment made for each coded line item Beginning 1/1/14 CMS finalized one of the most aggressive packaging policies under OPPS history The rule packaged the payment of outpatient lab tests (other than molecular pathology) under the OPPS rather than separate CLFS payment, effective for dates of service beginning on 1/1/14. OP Clinical Diagnostic Lab Tests 19

20 Later in 2014, CMS published further instructions regarding when laboratory tests are paid separately and ultimately packaged in Transmittal 2971 and MLN Matters SE1412. (Implementation date = 1/6/14)Transmittal 2971MLN Matters SE1412 Packaged payment applies to all lab tests (other than molecular pathology) billed by OPPS hospitals on a 013X Type of Bill (TOB) (Hospital Outpatient). OP Clinical Diagnostic Lab Tests 20

21 CMS created very limited exceptions to the packaging policy and instructed hospitals to use the 014X TOB (Hospital Non-Patient) to obtain separate payment only in the following circumstances –Non-patient (referred) specimen –A hospital collects specimen and furnishes only the outpatient labs on a given date of service or –A hospital conducts outpatient lab tests that are clinically unrelated to other hospital outpatient services furnished the same day. –“Unrelated” means the laboratory test is ordered by a different practitioner than the practitioner who ordered the other hospital outpatient services, for a different diagnosis. OP Clinical Diagnostic Lab Tests 21

22 Beginning with dates of service on or after July 1, 2014, CMS requires appending modifier -L1 to assist with revenue cycle operations and securing separate payment from CMS when stated provisions are met. The Type of bill remains 013X rather than 014X This modifier on the claim indicates that one of the exceptions previously stated are met –CMS will be reviewing claims data for CY 2014 for potential inappropriate unbundling of laboratory services under the new OPPS packaging policy. – As stated in the OPPS final rule, CMS does not expect changes in practice patterns under the new policy. – Hospitals may not establish new scheduling patterns in order to provide laboratory services on separate dates of service from other hospital services for the purpose of receiving separate payment under the CLFS OP Clinical Diagnostic Lab Tests 22

23 Two Midnight Benchmark The Two Midnight Benchmark describes the physician’s expectation at the time of admission and how CMS will review claims under the Two Midnight rule –Contractors will include the time the beneficiary spends receiving outpatient care in their review decision (includes outpatient care in a hospital-based outpatient department whether on campus or off campus) –If total time the beneficiary is expected to spend receiving medically necessary hospital care (includes both outpatient care and inpatient care) equals-- 0-1 Midnight: Review contractor will review claim to see if the beneficiary was admitted for an inpatient-only procedure or if other circumstances justify inpatient admission per CMS guidance (e.g., new onset ventilation) (Note: admission to ICU does not by itself justify an inpatient admission). Otherwise, Part A payment will be denied. 2 or More Midnights: Review contractor will generally find Part A payment to be appropriate. 23

24 The Presumption Selection of Claims for Medical Review How will claims be selected for review under the two midnight rule If a claim shows two or more midnights after the time of formal inpatient admission — –The contractor will presume for claim selection purposes that inpatient admission is appropriate –This claim will not be the focus of medical review Exception: Medicare contractor will monitor claim patterns for evidence of systematic gaming or abuse, such as unnecessary delays in the provision of care to surpass two inpatient midnights –Statistical drops in the number of 0-1 Day Stays; spikes in the number of 2 Day Stays after 10/1/2013.. 24

25 CASE SCENARIOS Two Midnight Rule 25

26 CASE SCENARIO 1 A 68-year-old male presents at the ED with several days’ history of urinary symptoms, vague intermittent abdominal discomfort, he had gassy and feverish feeling over the past several days, and intermittent chills and nausea without vomiting. This patient is on oral meds for constipation, hypertension, cholesterol, and diabetes. The patient complains that he is just not feeling like himself, he has no appetite, he’s tired, and may have a touch of the flu. No other complaints are noted. This patient presents on October 1st at 10:00 p.m. and is triaged. At 10:10 p.m., a urine sample and glucometer reading are obtained, and the patient is sent back to the waiting room. At 11:00 p.m., the physician assesses the patient and orders therapeutic and additional diagnostic modalities. At 12:00 a.m., the patient has a new complaint of chest pain. Additional tests and treatments are provided. On October 2nd at 12:15 a.m., the physician reevaluates the patient after the new complaint and determines that he will need to stay in the hospital for at least two midnights of medically necessary hospital services. At 12:35 a.m., a formal order and inpatient admission are provided. The patient stays overnight, and on October 3rd at 7:35 a.m., the patient is safe for discharge home. 26

27 CASE SCENARIO 2 An 80-year-old female presents to her primary care physician’s office not feeling well. She has a past medical history significant for chronic obstructive pulmonary disease and is on multiple medications. She has been experiencing increased shortness of breath for the last several days. On October 1st at 6:00 p.m., she’s evaluated by her primary care physician and sent to the hospital for further evaluation. She’s sent via ambulance. At 9:00 p.m., upon arrival at the hospital, the admitting practitioner confirms the suspected diagnosis and admits the woman based on his expectation that the patient’s care will span at least two midnights. The patient continues to receive medically necessary hospital services from October 2nd through October 4th. On October 5th at 9:00 a.m., the patient is discharged home. 27

28 ICD-10 Expected Impacts 28

29 ICD-10 Readiness Check vendor preparedness now Create a dashboard to track documentation opportunities Begin claims testing with external vendors Start dual coding Educate physicians and create training scenarios Identify skill gaps Review the dual coding differences to begin to calculate ICD-10 reimbursement impact Adjust budgets and projections for impacts Prepare for productivity declines by staffing up or contracting with an agency Establish contingency plans for high risk areas Train front end staff on new medical necessity guidelines Plan for real-time coordinator to field questions during transition 29

30 Jill Griffith Toll Free: 1-800-642-3601 CONTACT INFORMATION 30

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