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HOSPITAL MEETING Friday, September 1, 2017 8:00 AM 12:00 PM - PowerPoint PPT Presentation

HOSPITAL MEETING Friday, September 1, 2017 8:00 AM 12:00 PM Location: The Department of Health Care Policy & Financing, 303 East 17 th Avenue, Denver, CO 80203. 11 th Floor Rooms A&B. For more information contact: Elizabeth Quaife at


  1. HOSPITAL MEETING Friday, September 1, 2017 8:00 AM – 12:00 PM Location: The Department of Health Care Policy & Financing, 303 East 17 th Avenue, Denver, CO 80203. 11 th Floor Rooms A&B. For more information contact: Elizabeth Quaife at 303.866.2083 or elizabeth.quaife@state.co.us & Diana Lambe at 303.866.5526 or diana.lambe@state.co.us. 1

  2. Overview of Meeting • General Hospital Meeting 8:00-10:00 • Break 10 min. • General Hospital Meeting cont’d 10:10-12:00 • Lunch 12:00-1:00 • CC/CCEC Stakeholder Meeting 1:00-2:00 2

  3. HOSPITAL ENGAGEMENT MEETING TOPICS 9/1/2017 8am-12pm • General Hospital Meeting - Feedback on Future Meetings - Specialty Hospital Rates Methodology Update - Cost Settlement Updates - Innovative Medications Update • Rate Related System Issues Update - Suspended Claims a. HCPCs Annual Update b. Drug Related Revenue Code - I CD-10 10/1/2017 update on new Diagnosis Codes - Mass Adjustment & Testing Adjustments Update - EAPG Rule Change - EAPG Software Updates - Transportation - EAPG UD & 25 Modifiers - EAPG Mass Adjustment Update • CCEC/CC Stakeholder Meeting 1pm - 2pm 3 Colorado Department of Health Care Policy and Financing

  4. GROUND RULES FOR WEBINAR • WE WILL BE RECORDING THIS WEBINAR • PLEASE MUTE YOUR LINE UNLESS SPEAKING • Please speak clearly when asking a question and give your name and hospital • We are going to try to avoid muting the phone lines to encourage conversation, so please don’t: • Put us on hold • Drive in your car w/window open while listening • Sit in a noisy location • Be cautious of side conversations and language (we can hear you and it is being recording) 4

  5. Welcome & Introductions • Thank you for participating today! • We are counting on your participation to make these meetings successful 5

  6. Staffing Updates • Marguerite Richardson has retired: Cost Settlements have been taken over by Andrew Larson • Andrew Larson: CC/CCEC Analyst questions/concerns contact at Andrew.Larson@state.co.us • Elizabeth Quaife: Specialty Hospital Analyst. Please send all NEW inquiries for Specialty Hospitals to Elizabeth.Quaife@state.co.us. • Raine Henry is currently on leave. For questions in regards to Hospital, Lab and Telemedicine Policy please contact Ana Lucaci at Ana.Lucaci@state.co.us 6

  7. Dates for Future Hospital Engagement Meetings in 2017 The agenda for upcoming meetings will be • 3/3/2017 available on our external website in advance of each meeting. https://www.colorado.gov/hcpf/inpatient- • 5/5/2017 hospital-payment Registration links for each session during the day • 7/7/2017 will also be available prior to the meeting. Just click on the links to register for each session • and you will receive the link to connect to the 9/1/2017 webinar. • Meetings will now begin at 9am starting with 11/3/2017 11/3/2017 meeting 7

  8. Future Hospital Engagement Meetings in 2018 Engagement Meeting Dates for 2018 01/12/2018 07/13/2018 03/02/2018 09/07/2018 05/04/2018 11/02/2018 • Meetings will now begin at 9am • Minutes/Summary Helpful for July’s Meeting • Suggestions 8

  9. Specialty Hospital Budget Neutral Blanket Severity of (all hospitals Peer Groups Illness combined) Stepdown by Individual Days of Service Hospital • Attempts at variety of combinations of above components • Over 30 different calculations • Calculations discarded when too costly for Hospitals or over Budget 9

  10. Specialty Hospital Budget Neutral Challenges In Calculating Per Diem • Calculating differences in the weights from FY 16 to FY 17 • Which elements to use in Per Diem calculation • Each approach required new calculations • Making sure utilized information was accurate (removing duplicate claims and transfer logic applied to LTACs and Rehabilitations) Per diem Components • Manually calculated FY 16 using FY 17 rates • Tested against cases for FY 17 • Grouped into Peer Groups • Stepdown in Service Days ➢ Blanket Calculation – Utilized all Hospital service days ➢ Peer Group Calculation – Each peer group received their own calculated service days • Medicare Crossover tested in FY 17 10

  11. Specialty Hospital Budget Neutral Preliminary Proposed Per Diem Rates (two options) Proposed Step Down Per Diem Rate Using Blanket Calculated Service Days and 5% Stepdown: Q1 $ Q2 $ Q3 $ Q4 - starts $ LTAC 0-21 $2,084.02 22-42 $1,979.82 43-77 $1,880.83 78 $1,786.79 REHAB 0-21 $1,082.20 22-42 $1,028.09 43-77 $976.69 78 $927.85 CRAIG 0-21 $3,070.13 22-42 $2,916.62 43-77 $2,770.79 78 $2,632.25 Proposed Step Down Per Diem Rate Using Peer Group Service Days and 5% Stepdown: Q1 $ Q2 $ Q3 $ Q4 - starts $ LTAC 0-14 $1,989.29 15-35 $1,889.83 36-63 $1,795.33 64 $1,705.57 REHAB 0-14 $1,032.70 15-21 $981.07 22-35 $932.01 36 $885.41 CRAIG 0-28 $2,930.58 29-63 $2,784.05 64-84 $2,644.85 85 $2,512.61 Per Diem Equation • Total Peer Group Reimbursement/ Total Group Days • Total Peer Group Reimbursement/ Total Peer Group Days Action Item: Interested in Feedback. Missing components? Favor one option over the other? **Implementation Goal July 1, 2018** 11

  12. Specialty Hospital Long Term Solutions Reviewing possible combinations of: • • Per Diem Peer Group • • Stepdown System Quality • Severity of Illness Component Any budget changes that are not budget neutral must go through the Budget Process • Main details decided by Nov 2018 • Implementation Goal: July 1, 2020 12

  13. Specialty Hospital Future Meetings/Updates Specialty Hospital Engagement • Set up Monthly Meetings for Specialty Hospitals Meetings • On a Friday, starting October 6 th , 1pm-3pm 10/06/2017 (1pm-3pm) • Obtain Feedback/ Ideas 11/3/2017 (1pm-2pm) • Understand patient’s journey 12/01/2017 (1pm-3pm) • Prior to admission to Specialty • During stay at Specialty • After discharge from Specialty • Volunteers for Onsite Visits Would like to meet with most LTACs and Rehabs at least once prior to end of the year. 13

  14. Cost Settlement Updates • Backlog of Settlements from Marguerite’s Retirement and System implementation have been resolved • If you have received a letter from Meyers and Stauffer, but NOT from the Department, please contact Andrew Larson • Process being internally re-developed ➢ Will supply updates as they come up 14

  15. Innovative Medication Updates • We have been researching various options but this is a very resource intensive process • Received requested information from a few hospitals • We welcome and are open to any additional feedback from hospitals • Still researching/reviewing all information • We are in the process of applying for a grant to investigate the acquisition cost of drugs 15

  16. MASS ADJUSTMENT TESTING UPDATE 227 Claims – Scheduled Process Date 9/8/2017 Count of ICN_NBR Column Labels Row Labels ICD10_oldsystem ICD10_wrongversion LVP_3hosp Transfer_Claims Grand Total HealthOne 50 3 1 54 HealthOne North Suburban Medical Center 8 8 HealthOne Presbyterian/St. Luke's Medical Center 7 1 8 HealthOne Rose Medical Center 6 2 8 HealthOne Sky Ridge Medical Center 4 4 HealthOne Spalding Rehabilitation Hospital 1 1 2 HealthOne Swedish Medical Center 9 9 HealthOne The Medical Center of Aurora 15 15 HealthSouth 5 1 15 21 HealthSouth Littleton Rehabilitation 3 6 9 HealthSouth Rehabilitation Hospital of Colorado Springs 2 1 9 12 SCL Health 50 50 Exempla Good Samaritan 4 4 Exempla Lutheran Medical Center 14 14 Exempla Saint Joseph Hospital, Inc. 23 23 Platte Valley Medical Center 3 3 St. Mary's Hospital and Medical Center, Inc. 6 6 UC-HEALTH 50 6 56 Memorial Hospital 18 2 20 Poudre Valley Hospital 10 10 University of Colorado Hospital 22 4 26 YAMPA 7 39 46 Yampa Valley Medical Center 7 39 46 227 Grand Total 162 10 39 16 Numbers are subject to change due to adjustments made by Providers or Department staff

  17. 3M Grouper Software Updates EAPG – Current Version 3.10.17.1 • DXC to update EAPG from Version 3.10.17.1 in next month to Version 3.10.17.3. Will accommodate changes for versions 3.10.17.2 & 3.10.17.3 APR-DRG Current Version 33 • ICD-10 10/1/2017 Update: The Department is planning for the APR- DRG Version 33 Software to be updated to reflect the ICD-10 10/1/2017 Update on or shortly after 10/1/2017. Software Updates • The Department is working with DXC to create a strategy for communicating software updates to providers. 17

  18. Suspended Claims Received access to Suspended Claims for analysis • Reviewing Data associated with claims ➢ Primary Suspension Claim causes ▪ HCPCs Annual Update ▪ Drug Related Revenue Codes ➢ Continue reviewing minor causes Edit/Audit Description Paid Amount ICN Count Drug Related Revenue Code or Procedure $1,810,962.08 5,477 HCPCS - Annual Update $6,153,009.59 14,564 $7,963,971.67 25,889 18

  19. EAPG Rule Change • 1.4% rate increase approved by CMS ➢ Requires update to Code of Colorado Regulations ➢ Will be presented to Medical Services Board (MSB) 10/13 ➢ Rule can be reviewed on Outpatient Hospital Payment page ➢ Feedback sent to HCPF_Hospitalregulatory@state.co.us. • Rate updates will be made pending MSB Approval ➢ Mass adjustment scheduling • Increased engagement with rule-making process ➢ Further rule changes will be announced similarly 19

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