Medicare Inpatient Admissions RAC Response and Appeals Tactics - PowerPoint PPT Presentation

Justifying Medicare Inpatient Admissions RAC Response and Appeals Tactics Gregory Palega, MD JD MedManagement LLC Medical Director of Regulatory Affairs gpalega@medmanagementllc.com

Objectives  Learn the Correct Medicare Level of Care (LOC) Rules.  Identify Common Errors in Recovery Auditor (RAC) denial of payment rationales  Understand the Appeal Process  Understand the Approach to an Effective Level of Care Appeal

This is How it Goes Down!

The Facts Are Not in Dispute  Connolly admitted these facts were documented:  71 year old Man  Creatinine up to 2.8  Potassium 7.2  Complained of hurting all over and decreased urination.  History of CAD and diabetes

Seriously? Acute Renal Failure  Signs and symptoms not severe?  Not threatened by less intensive care?  Observation was warranted?  Patient did not require inpatient level services and was discharged after a short stay.

Snap Back to Reality  For practicing doctors and nurses, letters like this can induce an emotional response.  Channel it into an effective appeal

Clarity of Medicare LOC Regulations

Black Belt Medicare LOC Rule Review

Legal Chain of Command  US Constitution  Federal Law/Social Security Act  Court Decisions  HHS/CMS Regulations and “Rulings”  NCDs  LCDs, Medicare Manuals and other published guidance

Defining Medicare Inpatient LOC  Title XVIII of the Social Security Act, Section 1862(a)(1)(A) states that no Medicare payment shall be made for items or services which are not reasonable and necessary for the diagnosis or treatment of illness or injury  Only one LCD in effect- Highmark – DE, DC, MD, NJ, PA …recently acquired OK+?  L32222 WPS effective 3/2012 IA,KS,MO,NE  Private Insurers and Medicaid have different definitions and rules. Beware!

REGULATIONS-CMS Inpatient Details “Generally, a patient is considered an inpatient if formally admitted as inpatient with the expectation that he or she will remain at least overnight and occupy a bed even though it later develops that the patient can be discharged or transferred to another hospital and not actually use a hospital bed overnight.” Defined as 24hours Source: Medicare Benefit Policy Manual, Chapter 1

Expected to Need Inpatient Care for 24h Physicians should use a 24-hour period as a benchmark, i.e., they should order admission for patients who are expected to need hospital care for 24 hours or more, and treat other patients on an outpatient basis.  Ch 1, Section 10, MBPMs Subjectively and Does not say Objectively. Must “inpatient” level be reasonable. defined on later slides

Current CMS Factors to Consider “…the decision to admit a patient is a complex medical judgment which can be made only after the physician has considered a number of factors, including the patient’s medical history and current medical needs, the type of facilities available to inpatients and outpatients , the hospital’s by -laws and admissions policies, and the relative appropriateness of treatment in each setting.” Can they reliably treat this out of the hospital in this town? Source: Medicare Benefit Policy Manual, Chapter 1

Must Balance Facts Impacting CMS Factors

More CMS Factors Bearing on LOC  “Factors to be considered when making the decision to admit include such things as:  The severity of the signs and symptoms exhibited by the patient;  The medical predictability of something adverse happening to the patient;  The need for diagnostic studies that appropriately are outpatient (i.e., their performance does not ordinarily require the patient to remain at the hospital for 24 hours or more) to assist in assessing whether the patient should be admitted; and  The availability of diagnostic procedures at the time when and at the location where the patient presents.” Can the threat be eliminated in less than 24 hours? Source: Medicare Benefit Policy Manual, Chapter 1

“Need” Inpatient Care Means…  Inpatient care rather than outpatient care is required only if the beneficiary's medical condition, safety, or health would be significantly and directly threatened if care was provided in a less intensive setting. did not use “level of care” implies hospital location needed  The reviewer shall consider, in his/her review of the medical record, any pre-existing medical problems or extenuating circumstances that make admission of the beneficiary medically necessary.  Medicare Program Integrity Manual, Chapter 6 - Intermediary MR Guidelines for Specific Services  6.5.2 - Medical Review of Acute Inpatient Prospective Payment System (IPPS) Hospital or Long- term Care Hospital (LTCH) Claims, A. Determining Medical Necessity and Appropriateness of Admission

“Need” Inpatient Care Means… Without accompanying medical conditions, factors that would only cause the beneficiary inconvenience in terms of time and money needed to care for the beneficiary at home or for travel to a physician's office, or that may cause the beneficiary to worry, do not justify a continued hospital stay. The fact that the patient or family was “uncomfortable” doing this at home means outpatient care was offered and thought reasonable and necessary by the offering MD. Identify your “wants” versus “needs”  Medicare Program Integrity Manual, Chapter 6 - Intermediary MR Guidelines for Specific Services  6.5.2 - Medical Review of Acute Inpatient Prospective Payment System (IPPS) Hospital or Long- term Care Hospital (LTCH) Claims, A. Determining Medical Necessity and Appropriateness of Admission

What is the Requisite Intensity?  Auditors love attacking hospitals with the PIM intensity stick.  must receive services of such intensity that they can be furnished safely and effectively only on an inpatient basis .  No mention of IV fluid rate, hospital ward v ICU, oxygen minimums…etc… previously defined as a 24 or more hour physical hospital setting  Medicare Program Integrity Manual  Chapter 6 - Intermediary MR Guidelines for Specific Services  6.5.2 - Medical Review of Acute Inpatient Prospective Payment System (IPPS) Hospital or Long- term Care Hospital (LTCH) Claims  (Rev. 264; Issued: 08-07-08; Effective Date: 08-01-08; Implementation Date: 08-15-08)

Safely and Effectively

Surgery NOT on Inpatient-Only List  “ Minor Surgery or Other Treatment – When patients with known diagnoses enter a hospital for a specific minor surgical procedure or other treatment that is expected to keep them in the hospital for only a few hours (less than 24 ), they are considered outpatients for coverage purposes regardless of the hour they came to the hospital, whether they used a bed, and whether they remained in the hospital past midnight.”  Chapter 1, section 10 of the Medicare Benefit Policy Manual.

“Exclusions” Trump Card  Custodial care is excluded from coverage.  Custodial care serves to assist an individual in the activities of daily living, such as assistance in walking, getting in and out of bed, bathing, dressing, feeding, and using the toilet, preparation of special diets, and supervision of medication that usually can be self- administered.  Custodial care essentially is personal care that does not require the continuing attention of trained medical or paramedical personnel.  In determining whether a person is receiving custodial care, the intermediary or carrier considers the level of care and medical supervision required and furnished. It does not base the decision on diagnosis, type of condition, degree of functional limitation, or rehabilitation potential.  Medicare Benefit Policy Manual Chapter 16  110 - Custodial Care  (Rev. 1, 10-01-03)  A3-3159, HO-260.10, HO-261, B3-2326

Observation Is Not Always an Option  Observation care is a well-defined set of specific, clinically appropriate services, which include ongoing short term treatment, assessment, and reassessment, that are furnished while a decision is being made regarding whether patients will require further treatment as hospital inpatients or if they are able to be discharged from the hospital. Observation services are commonly ordered for patients who present to the emergency department and who then require a significant period of treatment or monitoring in order to make a decision concerning their admission or discharge. Observation services are covered only when provided by the order of a physician or another individual authorized by State licensure law and hospital staff bylaws to admit patients to the hospital or to order outpatient services.  Medicare Claims Processing Manual Chapter 4 - Part B Hospital  290.1 - Observation Services Overview (Rev. 1760, Issued: 06-23-09; Effective Date: 07-01-09; Implementation Date: 07-06-09)  Observation services must also be reasonable and necessary to be covered by Medicare. In only rare and exceptional cases do reasonable and necessary outpatient observation services span more than 48 hours. In the majority of cases, the decision whether to discharge a patient from the hospital following resolution of the reason for the observation care or to admit the patient as an inpatient can be made in less than 48 hours, usually in less than 24 hours.