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Posts from the ‘Home Health PPS’ Category

Losing the Dating Game

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Cost Report Due Date May 31

We finally got our most recent ZPIC client charts out the door on Saturday. It was quite a little challenge but we are ready for the next. Hopefully, it won’t be you.

Needless to say, we haven’t had time to blog a lot. I plan on changing that in the near future because I miss you all. In my stead, is Dana Strong reminding us all about Medicare Cost Reports.

Also, if any of you have any specialized knowledge that you want to share, please forward to me. It is always good to have a draft or two on hand for those days when there isn’t even one extra spare minute.

FYE 12-31-10 MEDICARE COST REPORTS DUE MAY 31, 2011

Just a quick reminder to everyone that FYE 12-31-10 Medicare cost reports are due May 31, 2011. Failure to file an acceptable cost report timely, can result in 100% payment reduction by your Fiscal Intermediary.

An acceptable Medicare cost report filing consists of the following per CAHABA GBA:

• Diskette of the electronic cost report (ECR) file using CMS approved software
• ECR must pass all Level 1 edits
• A submitted print image (PI) file of the cost report. (Unless using free software.)
• Worksheet S with original signature of the administrator or chief financial officer
• A complete, legible hard copy of the MCR on proper forms (Free software users only).
• An exact match of encryption code, date and time for ECR and PI file creation.
• Settlement summary on the ECR matches the settlement on the signed Worksheet S.
• CMS Form 339 with original signatures of Administrator or CFO on certification page and applicable supporting documents
• Supporting documentation for worksheets A-4, A-5, A-6, and A-8 if applicable.
• Medicare bad debt listings, if applicable
• Adjusting Journal Entries
• Working Trial Balance which ties to Worksheet A
• Audited Financial Statements (if maintained)

The intermediary has 30 days from the date of receipt to determine acceptability. If the report is unacceptable, it will be returned to the provider with a letter explaining the reason for rejection. If the due date has expired, withholding of interim payments will begin. This withholding will be released as soon as an acceptable cost report is received.

Please remember it is important to both timely file your cost report and to ensure its accuracy for any future PPS rate updates.

Any questions, please contact me for any cost report filing assistance.

Dana Strong
Strong Consulting LLC
1 Steeplechase Drive
Scarborough, ME 04074
207-883-8790 (phone)
207-883-8789 (fax)
207-650-1034 (cell)
http://www.strongconsultingllc.com


							

When You are a ZPIC Target

With 128 known targets in the Louisiana, South Texas area, it may just be possible that your agency becomes a target. If that happens, it is not the end of the world. Remember, nothing happens fast in the Medicare world.

Obviously, the first thing that must happen is that clinical records must be copied or preferably scanned into electronic format. If, like the providers I have dealt with, the investigation likely stems from excessive lengths of stay, the charts will be quite large. Furthermore, the contractor will ask for all records for a given patient even if there has been multiple admits and discharges. Expect clinical records to exceed 500 pages or longer.

The next thing that you need to remember is that there is a very high probability that 100 percent of your records will be denied initially. This is the case regardless of whether your records are pristine or a train wreck. ZPICs examine charts with the intention of finding fraud. Targets are not chosen randomly and without reason.

When you respond to the contractor explaining why your records should not be denied, you will get the same response.

So, now you have waited months for two rounds of reviews only to be told that you will have a one hundred percent overpayment extrapolated for 36 months. If you can afford to give back three years of revenue, then read no further and relax.

On the third round of review with an independent contractor, the results may be a little better. This is the first real chance of having anything positive go your way but it won’t be enough. Your overpayment may drop from 100 percent to 70 percent but that is still a pretty high number. And at this point in time, that number is sent to your fiscal intermediary so that recoupment can begin.

But wait! There’s more! You have sixty days to ask for a redetermination with the Fiscal Intermediary. While generous, it is also important to note that recoupment starts at day 41 so it is truly in your best interest to not take advantage of the FI’s generosity. Requests for redeterminations must be at the FI within 30 days to prevent immediate recoupment and suspension of payment. While your case is under redetermination at the Fiscal Intermediary, recoupment will be delayed.

If you were close to retirement age when you first received the notice from the ZPIC contractor, there is a pretty good chance you will be receiving retirement benefits by now. Chances are it has been a year or more and nothing is settled yet

When the Fiscal Intermediary finishes its redetermination, the recoupment process will begin. At this point, you need to have someone who is very comfortable with Administrative Law procedures and knows each of your patients inside and out. There is a strong possibility that the ALJ will turn over a significant number of denials and your ordeal is over. There is also a chance that he or she will stand behind the original determination.

There are two more levels of appeals after the ALJ ending up in district court where cases are usually resolved at a level that the provider can afford. By this time you are tired and exhausted but usually at least partially successful. You have also spent a good deal of money on lawyers and consultants although not nearly as much as Medicare was requesting.

All along this process there are steps that you should take that will improve your chances of a satisfactory outcome and protect against future investigations. A consultant experienced in pre and post overpayment reviews will be able to assist you in doing this and a good health care lawyer will be able to help you in the latter stages.

If you haven’t received a letter from a Zone Contractor yet, it doesn’t hurt to put yourself in a position to reduce the risk of receiving unwanted mail. Look closely at the risk factors published Monday and evaluate your agency’s performance. If you haven’t already done so, implement a compliance program that ensures that your entire staff is dedicated to compliance.

If you have any questions about any kind of pre or post payment audit, please feel free to contact us or leave a comment below.

ZPIC Targets

Home Health and Hospice, as well as other post acute care providers have been under scrutiny before and this current emergence of ZPIC activity certainly won’t be the last time we are under scrutiny. But, unlike Focused Medical Review or even RACs, ZPIC audits begin with the presumption that the provider has committed fraud.

For our purposes, we will define Medicare Fraud as billing for services that were not covered under Medicare. Thats all the ZPICs are looking at – Billing. CMS instructs the ZPICs to refer serious quality issues to the state agency or QIO. In other words they do not care if your supervisory visits are made timely or if you followed orders and frequency. In fact, you may have had a stellar state survey and still find yourself in ZPIC sights.

To determine your risk level, first check your length of stay data on the top right corner of your case mix report from Casper. If your numbers are much higher than the reference mean, you may find yourself under scrutiny. If your average case mix weight is closer to three than two you are similarly at risk. Usually, high case mix weights are a result of therapy so be cognizant of how many of your patients receive therapy – especially when the number of visits is consistently at threshold levels. Finally, a high number of diagnoses that add to HHRGs can be suspect. If all of your patients have DM, you had better be able to explain why.

Hospices are looked at also for excessive lengths of stay and diagnoses that are not ordinairily terminal.


If your agency does not fit any of these profiles, you are most likely safe. However, the ZPICs have a lot of freedom to look at who and what they want. Multiple complaints to the Benefit Integrity Unit or state agencies may also spur an audit.

And remember, the vast majority of agencies will never undergo a ZPIC audit. But should you find yourself in the ‘zone’ at least you will have a place to start damage control.

As always, I welcome your comments and shared experiences below. And you can always email me.

Therapy Management

In reviewing charts lately, there seems to be a severe lack of therapy management in home health agencies that depend upon contracted therapy. It seems that in some parts of the country, therapists are in such high demand that we allow them to do as they please as long as they will see our patients. We choose between the lesser of two evils – having a rogue therapist or two or not providing therapy to our patients. This can result in poor care to the patient but most often it results in financial disasters. It doesn’t matter how much you are paid for an episode, if you spend more than you make. These are some of the problems I see regularly throughout agencies.

Referrals: An agency makes a referral to a therapist and when it is convenient, the therapist sees the patient. If therapy isn’t managed, the agency may not know that a therapist didn’t admit the patient until five days after referral. This results in poorly crafted OASIS assessments, impossible resource management and overall sloppy care. A surveyor would deem this practice as poor coordination of care and in some states, a serious hit on survey for admissions processes.

Subsequent Orders: I have never reviewed charts in an agency where all therapy orders were on the chart. In agencies that have solid therapy management plans, this happens less frequently. In agencies that take a haphazard approach to therapy management they have given the surveyors an easy tag.

Extension Orders: This happens when the agency and the therapy provider agree on a plan of care and then the therapist requests additional visits directly from the physician. One therapist I reviewed at an agency consistently did 19 visits because they knew CMS looked really hard at 20. (I don’t make this stuff up.) All home health services must be rendered under the guidance and supervision of the home health agency. I would think twice about paying for additional visits if they were requested outside of the processes of the agency.

Frequency Errors: Missed visit slips are often turned in weekly with therapy documentation. Most times the agency doesn’t even know the visits were missed prior to receiving the paperwork. If the missed visit occurred on the prior week, no agency intervention such as scheduling an alternative therapist can be made. When this results in five or thirteen visits for patients who truly needed seven or 14 visits, it makes me want to cry. Chances are my entire consulting bill could have been paid out of the loss incurred by the agency for sloppy therapy management.

Our biggest problem is that many agencies are okay with this sloppy case management because the alternative is not having a therapist. They will continue to be okay with it until a state agency places them on a termination track for repeated offenses. And no, they don’t often clear therapy related deficiencies on a desk review.

In order to manage therapy, agencies should have in place processes that include:

  • Communication with the therapist the very same day as the referral was sent
  • Inclusion of therapists in case conference even if it is only a phone call prior to the therapist by the primary nurse or case manager.
  • A system for tracking orders
  • A system for tracking visits

Additionally, agencies need to remember that all arrangements by third party providers conform to a written agreement that contains at least the following criteria as outlined by CMS:

……when a provider provides outpatient services under an arrangement with others, such services must be furnished in accordance with the terms of a written contract, which provides for retention by the provider of responsibility for and control and supervision of such services. The terms of the contract should include at least the following:

• Provide that the therapy services are to be furnished in accordance with the plan of care established according to Medicare policies for therapy plans of care in section 220.1.2 of this chapter;

• Specify the geographical areas in which the services are to be furnished;

• Provide that contracted personnel and services meet the same requirements as those which would be applicable if the personnel and services were furnished directly by the provider;

• Provide that the therapist will participate in conferences required to coordinate the care of an individual patient;

• Provide for the preparation of treatment records, with progress notes and observations, and for the prompt incorporation of such into the clinical records of the clinic;

• Specify the financial arrangements. The contracting organization or individual may not bill the patient or the health insurance program; and

• Specify the period of time the contract is to be in effect and the manner of termination or renewal.

If a therapy provider after signing such an agreement violates these terms and conditions, both the agency and the therapist may be held accountable. CMS really doesn’t care if there is an abundance or a shortage of therapists in your area!

As always, I am interested in your comments. If anyone has an effective way to manage therapy, please share it with your colleagues. You can email it to me directly to include as a blog post or paste it in the comments box below.