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Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement Compliance NYU School of Medicine 316 East 30 th Street New York, NY 10016 (212) 263-2446 (212) 263-6645 fax [email protected] NYU School of Medicine Coding and Reimbursement Seminar Series

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Page 1: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Documentation, Coding and Reimbursement Basics

Presented by the Office of Reimbursement Compliance

Gretchen L. Segado, MS, CPCDirector of Reimbursement Compliance

NYU School of Medicine316 East 30th StreetNew York, NY 10016

(212) 263-2446(212) 263-6645 fax

[email protected]

NYU School of MedicineCoding and Reimbursement Seminar Series

Page 2: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Agenda for Today

Fraud & Abuse-why do I need to pay attention?

Documentation Guidelines Reimbursement Principles Establishing Medical Necessity CPT & ICD-9 Coding Special Rules for Teaching Physicians

Page 3: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Published On August 31, 2001, Philadelphia Inquirer, The (PA)

Surgeon To Pay Back Medicare Over Billing

A nationally recognized Philadelphia orthopedic surgeon agreed yesterday to reimburse the government almost $2 million to settle claims that he billed Medicare for work done by surgical residents and surgical fellows.

In announcing the $1.89 million settlement with Robert Booth Jr., both the surgeon and the U.S. Attorney's Office said the government investigation had nothing to do with the quality of knee and hip replacements and other surgeries performed.

At issue were billings for surgeries performed between January 1, 1995 and June 30, 1997, at Pennsylvania Hospital. The government claimed that Booth had billed Medicare for treatment handled by junior physicians he was training.

Page 4: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

A family practice in West Virginia was audited earlier this month and ordered to pay back almost $6,000 to its carrier for improper billing of school sports physicals back in 2000, a spokesman for the practice said in a statement to a local television reporter. The practice allegedly used the wrong codes and received more reimbursement than it was allowed, a state health department worker confirmed.

Office Audited For Sports Billing Fumble

Page 5: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

March 5, 2004 PRESS RELEASEPHYSICIAN PAYS $203,422 TO SETTLE CIVIL FALSE CLAIMS ACT CHARGES ARISING OUT OF MEDICARE AND MEDICAID OVERBILLINGS

… Based on its investigation, the United States alleged that DR. THACKER had overbilled Medicare and Medicaid, during the period January 1, 1997 to December 31, 2002, by charging for "consultation" services that provided higher reimbursement, when she was actually performing regular patient visits. According to the United States, DR. THACKER had done so approximately 1,800 times during this period.

Page 6: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

April 2004  

In New York, three subjects were sentenced for their roles in a scheme to defraud the Government and private insurers. A podiatrist was sentenced for submitting claims for services that were either upcoded, not rendered, or were medically unnecessary. Also sentenced were two billing clerks who at the direction of the office manager, submitted claims that they knew were fraudulent.

Page 7: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

“Let the message be very, very clear. We have made health care fraud a priority and we will pursue it as vigorously as we can.”

Janet RenoAttorney General of the United States

Page 8: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

What Is Healthcare Fraud And Abuse?

Fraud-Intentional deception or misrepresentation that the individual knows to be false or does not believe to be true, and makes, knowing that the deception could result in unauthorized benefit to himself or some other person.

Examples: Incorrect reporting of diagnosis or procedures to maximize payments

Page 9: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

What Is Healthcare Fraud And Abuse?

Abuse- an incident or action that is inconsistent with accepted sound medical, business or fiscal practice.

• Abuse may directly or indirectly result in unnecessary costs, improper payment, payment for services that fail to meet professionally recognized standards of care, or that are medically unnecessary.

• Examples are billing for services at a higher level than what is supported by documentation, improper billing practices and billing a secondary payer as primary.

Page 10: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Government’s Recent Focus On Fraud

• General failure to achieve health care reform and reduce costs through legislation

• Medicare Trust Fund is going bankrupt as Medicare expenditures continue to rise

• Politically popular• Aging population

Page 11: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Susceptibility

Susceptibility to fraud and abuse varies by the method of reimbursement• Fee for Service (FFS) System - Abuse is from

the provision of excessive services

• Capitated Contract System - Abuse is from the provision of too few services provided per patient

Page 12: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Major Federal Fraud & Abuse Laws

• Medicare Anti-Kickback Statute• United States Criminal Code• Federal False Claims Act• Federal Self-Referral Statute (Stark)• HIPAA• Balanced Budget Act (BBA)• Over 50 statutes used to prosecute

Page 13: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Hypothetical

Dr. I is an attending in the Dept. of Internal Medicine. One of her patients is a 57 year old chronic alcoholic with multiple medical problems. This patient has been non-compliant with medications and has been hospitalized 3 times within the past year. When asked by Dr. I why she was not taking medications, she said she can’t afford them. She then asked Dr. I to write all of her prescriptions in her brother’s name, claiming that he has medical insurance that will pay for them. Hoping to avoid further hospitalizations, Dr. I complies with this request. Does this practice place Dr. I or her patient at any risk?

Page 14: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Federal Civil False Claims Act

Elements of a “False Claim” Offense

• submitting or causing to be submitted a claim for payment to the government or using a false record to get a claim approved

• which claim is false and fraudulent

• wherein defendant acted “knowingly”

Page 15: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Federal Civil False Claims Act (Cont.)

Penalties

• Triple the damage the government sustains plus $5,000-$13,000 penalty for each “false claim”

• Penalties can be so enormous that defendants often choose to settle rather than risk a negative outcome in litigation

Page 16: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Federal Civil False Claims Act (Cont.)

Most Frequent Applications of the False Claims Statute• billing for services not rendered• false cost reports• upcoding• double billing• provision of unnecessary care

(certifying that unneeded services were “medically necessary”)

Page 17: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Federal Civil False Claims Act (Cont.)

Advantages for Government in Prosecuting under this Statute as opposed to Criminal Prosecution• “intent” element easier to prove

• burden of proof less than in criminal prosecution (preponderance of evidence)

• arguably covers broader types of “false” claims

• availability of qui tam prosecutions

Page 18: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Federal Civil False Claims Act (Cont.)

Qui Tam Actions• qui tam cases can be brought

by any citizen on behalf of himself and the government

• qui tam case brought by relator's filing a complaint under seal with the US Attorney

• complaint must be based upon an allegation of a “false claim”

Page 19: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Savvy Seniors on Fraud PatrolAs a result of training senior volunteers to detect and report fraud, the Administration on Aging (AoA) has recouped almost $3.7 million since the inception of the Senior Medicare Patrol Project in 1997. The AoA has trained nearly 35,000 senior volunteers to watch for offers of free groceries, free testing, or free screening in exchange for their Medicare business, numbers, or statements. The volunteers in turn have held over 200,000 educational sessions on fraud, waste, and abuse, and have trained over one million Medicare beneficiaries. Out of a total of 23,142 complaints reported by Medicare beneficiaries in the first five years of the program, the government took action on 2,312 complaints, and recovered $3,679,644 in Medicare funds, and more than $77 million to other payors.

(Medicare Compliance Alert, 4/14/03)

Page 20: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Still don’t think you have to worry?

Check out these web sites:

http://www.quitamonline.com

www.quitam.com

http://www.quackwatch.org/index.html

Page 21: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Hypothetical

Dr. X has a very busy medical practice. When blood tests are medically indicated and documented in the patients’ charts, he refers his patients to Vampire Laboratories for testing. Vampire is owned by Dr. X’s brother.

Is this a problem?

Page 22: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

The Federal Self-Referral Statute (the “Stark Law”)

• a physician may not make a referral

• to an entity for the provision of a designated health service for which Medicare payment may be made, and the entity may not present a claim for such referral

• if the physician or an immediate family member has a financial relationship with such entity

• unless the referral or the financial relationship is excepted under the statute.

Page 23: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Designated Health Services Under Stark

clinical laboratory services

physical therapy services occupational therapy

services radiology services radiation therapy

services and supplies durable medical

equipment and supplies

parental and enteral nutrients, equipment and supplies

prosthetics, orthotics, and prosthetic devices and supplies

home health services outpatient prescription

drugs inpatient and outpatient

hospital services

Page 24: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

The Stark Law (Cont.)

Penalties• Civil monetary penalties of up to $15,000 for each

service rendered in violation of Stark II if the payment is not refunded on a timely basis

• An assessment of not more than twice the amount claimed for each service that was the basis for the civil monetary penalty

• Exclusion from Medicare and Medicaid

• The total refund of Medicare/Medicaid dollars

Page 25: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Medicare Anti-Kickback Statute

• Key Elements

• “whoever”

• “knowingly and willfully”

• “offers or pays, solicits or receives any remuneration” in return for

• “referring an individual for the furnishing of any claim or service or purchasing, leasing or arranging or recommending the purchase, lease etc., of any item for service paid for in whole or in part under Medicare or Medicaid”

• “shall be guilty of a felony.”

Page 26: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Medicare Anti-Kickback Statute (cont.)

• Penalties• Up to five years imprisonment and/or a fine of

up to $25,000

• Exclusion by DHHS from participation in the Medicare and Medicaid Programs

• New penalty under BBA - civil monetary penalty of $50,000 per violation plus triple damages

Page 27: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Medicare Anti-Kickback Statute (cont.)

Safe Harbors• Types of payments and business

arrangements between providers that the US Attorney and the OIG will not prosecute

• If a transaction satisfies the elements of a safe harbor, it will not be grounds for prosecution regardless of intent.

• There are also safe harbors for managed care arrangements.

Page 28: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Medicare Anti-Kickback Statute (cont.)

Examples of Safe Harbors• investments in public companies

• investments in small businesses

• space rentals

• equipment rentals

• warranties

• certain discount arrangements

• employment

• sale of professional practices

Page 29: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Key Distinctions Between the Stark Law and the Anti-Kickback Statute

• Stark applies only to physicians; Anti-Kickback law applies to all providers

• Stark is a strict liability law -- no intent needed; Anti-Kickback law contains an intent element

• Stark is not a criminal statute; Anti-Kickback law is a criminal statute

Page 30: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Ø Billing Insurance Only! ROUTINE WAIVER OF DEDUCTIBLES,

COINSURANCE/COPAYMENTS IS UNLAWFUL

May subject physicians to False Claims Act or Anti-Kickback liability

Patient’s “cost-share” deters program over-utilization

OIG has issued a special Fraud Alert on this issue

Page 31: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

• Example: Provider’s charge is $100 for service. Medicare pays 80% or $80. If actual charge is misstated, Medicare is paying $16 more for the service than is should be. (Medicare should pay 80% of $80, not 80% of $100)

Routine waiver of the deductible/copay can be construed as a misstatement of the actual charge

Page 32: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

The Health Insurance Portability and Accountability Act of 1996What’s the fuss over HIPAA?

Privacy rights have become the subject of national debate• Increased internet usage has spawned horror

stories of “Big Brother” watching

• Fear that one click can transmit private info all over the world

HIPAA made Healthcare Fraud & Abuse a crime

Page 33: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

The 1996 Health Insurance Portability and Accountability Act (“HIPAA”)

HIPAA’s effect on existing health care fraud and abuse laws:

• increases resources available for combating fraud and abuse

• kickback statute expanded to apply to all federal healthcare payors (e.g.. CHAMPUS)

• extends and increases civil monetary penalties

Page 34: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Overview of the HIPAA Privacy Regulations

The HIPAA Privacy Regulations apply to covered entities’ handling of protected health information (“PHI”)

The Basic Rule: PHI may not be used or disclosed by a covered entity except as specifically required or permitted by the HIPAA Privacy Regulations.

The standard for PHI to be “de-identified” is very high, so the HIPAA Privacy Regulations apply to almost all information regarding a patient.

Page 35: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement
Page 36: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Balanced Budget Act of 1997

Gave Government additional Health Care Fraud & Abuse Measures• permanent exclusion for those convicted of

three health care related crimes

• authority to refuse to enter into Medicare contracts with individuals or entities convicted of felonies

• imposition of more civil monetary penalties

Page 37: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Did You Ever Read The Back Of A HCFA Form?

Every health insurance claim form (HCFA 1500) includes a certification that all statements made on the form are true and complete, and that any person who knowingly files a statement of claim containing any misrepresentation or any false or misleading information may be guilty of a criminal act punishable by law and may be subject to civil penalties. Additionally, for government payors, each provider certifies that the services rendered were medically necessary, were personally furnished by the provider or furnished by the provider’s employee under the provider’s personal supervision.

Page 38: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

With All These Rules, How Can I Be Safe?

Be familiar with the laws governing health care

Document everything you do and the reason for doing it

Learn how to code your services correctly

Page 39: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

General Principles Of Medical Record Documentation

Complete medical records for each patient

Make all entries in ink Use drawings, illustrations & pictures

when appropriate Write legibly

Page 40: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

General Principles Of Medical Record Documentation

For each encounter:

• reason for the encounter and relevant history, exam and prior diagnostic test results

• assessment, clinical impression or diagnosis

• plan of care

• date and legible identity of the observer

Page 41: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

General Documentation(Continued) Make entries promptly Do not leave blank spaces

in the patient records Document relevant

conversations between patient, responsible parties, physicians and staff

Use standard abbreviations

Page 42: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Basics of Medical Reimbursement

Payers are willing to pay for services provided they are:

•covered within the patient’s policy•medically appropriate for the patient's condition•medically necessary•coded correctly

Covered services are those services:•defined as “covered” within the terms of the patient's benefit plan•documented in the medical recordmedically necessary

Page 43: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Variables That Affect Reimbursement Include:

Individual insurance policies and regulations

Patient’s coverage Federal regulations Contractual agreements Accuracy of diagnosis and procedure

coding Physician office systems

Page 44: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Establishing Medical Necessity

The physician’s record should clearly document the medical necessity for all services rendered.

Only clinically proven, effective procedures are reimbursable under the Medicare program

Appropriate procedural and diagnosis coding is the key to establishing medical necessity

Page 45: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

What Is CPT-4?

Systematic listing of procedures & services performed by physicians

Five-digit codes for procedures or services Used to describe the physician’s services to a

patient for diagnosis and treatment of the medical condition(s)

Codes and descriptive terminology developed and copyrighted by AMA CPT Editorial Panel

Page 46: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

What is ICD-9?

Translates written terminology or descriptions into universal numeric and alphanumeric codes that can be processed electronically

Conveys a patient’s clinical picture to third-party payers

Serve to establish the medical necessity for the resultant procedures, treatment and medical supplies

Page 47: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Linkage Between ICD-9 & CPT (Continued)

CPT-4 represents the “WHAT” was done to the patient

Procedure------------------- 93010 (EKG)

ICD-9 represents the “WHY” it was done

Medical Necessity--------- 786.50 (Chest Pain)

Page 48: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Diagnosis (ICD-9 CM) Coding

While it is important to include differential diagnosis, suspected conditions or “rule-outs” in the medical documentation, an ICD-9 code is never selected based on what is being “ruled-out”. No such rule-out codes exist.• i.e. no code for rule-out MI

Use signs and symptoms or established diagnosis on billing forms

Page 49: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Together, the correct CPT code and and diagnosis code establish the medical necessity

Diagnostic studies ICD-9-CM • X-ray, US, labs, etc. Report signs & • without established symptoms diagnosis (i.e., rule out, probable, suspected)Example:Diagnostic Study: ICD-9 Linkage:Pelvic Ultrasound pelvic painfor R/O Ectopic Pregnancy (625.9)

Page 50: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Medical Necessity (continued)

Diagnostic studies with Report confirmed confirmed or established or established diagnosis diagnosis

Example:Diagnostic Study: ICD-9 LinkagePt. for Pelvic Ultrasound uterine fibroid

(218.9)

Page 51: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Organization Of CPT Manual

• Text organized in 6 major sections• Evaluation and Management ( 99201 - 99499)

• Anesthesiology ( 00100 - 01999,

99100 - 99140)

• Surgery ( 10040 - 69990)

• Radiology ( 70010 - 79999)

• Pathology and Laboratory ( 80049 - 89399)

• Medicine ( 90281 - 99199)

Page 52: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Format Of The CPT-4 Manual Developed as a stand-alone descriptions of the

procedures To conserve space, some are not printed in their

entirety but refer back to a common portion listed in a preceding entry

EXAMPLE:

25100 Arthrotomy, wrist joint; for biopsy

25105 for synovectomy

25105 Arthrotomy, wrist joint; for synovectomy

Page 53: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

History ofMedicare’s Teaching Physician Rules

• Federal government payment rules• First billing guidelines established in 1967

• Revisited and the birth of Intermediary Letter 372 (IL 372)

• Continued confusion• Lack of standard application of rules by local

Medicare Carriers• Many institutions paid fines related to Teaching

Physician Rules• University of Pennsylvania- $30 million• University of Pittsburgh- $19 Million• Thomas Jefferson University- $12 million

Page 54: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Johns Hopkins Settles for $800,000

In February 2003 the Office of Inspector General (OIG) released a

bulletin stating that Johns Hopkins University (JHU) had entered into an

$800,000 settlement with the federal government to resolve charges of

fraudulent Medicare billing. Under the Physicians at Teaching Hospitals

(PATH) initiative, the OIG performed audits of teaching physician

services at Johns Hopkins from 1/1/94 through 12/31/94. According to

the OIG audit, Johns Hopkins submitted false claims to Medicare on

behalf of faculty physicians for services that were actually provided by

interns and residents. Documentation did not support that the

teaching physicians were personally involved in the services

provided.

                                                                                                           

Page 55: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Nephrologist at University of Washington Pleads Guilty

Another teaching physician at the University of Washington (UW) in Seattle has pleaded guilty to submitting false claims to Medicare and Medicaid. Dr. William Couser, ex-Chief of Nephrology, has been accused of billing for renal dialysis services that were actually performed by residents but billed in his name. The accusations stem from a qui tam suit filed in 1999 that brought allegations against three departments at UW: neurosurgery, nephrology, and radiology..…During the federal investigation at UW, which lasted four years, the government examined more than a million documents and issued more than 100 subpoenas. The university spent over $10 million in legal fees, and in addition, has spent $1 million annually on compliance efforts since the suit was filed. The civil investigation is not yet resolved but is expected to conclude quickly. Civil monetary penalties are likely to be in the tens of millions.

Page 56: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

What are the Laws that Govern Teaching Physician Rules?

42 CFR §415.172 (a)General rule. If a resident participates in a service furnished in a

teaching setting, physician fee schedule payment is made only if a teaching physician is present during the key portion of any service or procedure for which payment is sought.

42 CFR §415.172 (a)(2)In the case of evaluation and management services, the teaching

physician must be present during the portion of the service that determines the level of service billed.

Page 57: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

What are the Laws that Govern Teaching Physician Rules?

42 CFR §415.172 (b)The medical records must document the teaching physician was present at the time the service is furnished. The presence of the teaching physician during procedures may be demonstrated by the notes in the medical records made by a physician, resident, or nurse. In the case of evaluation and management procedures, the teaching physician must personally document his or her participation in the service in the medical records.

42 CFR §415.172 (c)In the case of services such as evaluation and management for which there are several levels of service codes available for reporting purposes, the appropriate payment level must reflect the extent and complexity of the service when fully furnished by the teaching physician.

Page 58: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Presence & Participation

• The two significant principles of teaching physician documentation are presence & participation.

• Presence may not be inferred; it must be stated or “attested” by the teaching physician. Presence is defined in the teaching physician guidelines.

Page 59: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Medicare’s Teaching Physician RulesImportant Definitions:

Resident - an individual in an approved graduate medical education (GME) program or a physician who is authorized to practice only in a hospital setting..

Teaching physician - physician (other than another resident) who involves residents in the care of his or her patients.

Direct medical and surgical services- services to individual patients that are either personally furnished by a physician or furnished by a resident under the supervision of a physician in a teaching hospital

Physically present - located in the same room (or partitioned or curtained area, if the room is subdivided to accommodate multiple patients) as the patient and/or performs a face-to-face service.

Critical or key portion - that part (or parts) of a service that the teaching physician determines is (are) a critical or key portion(s). These terms are interchangeable.

Page 60: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Teaching Physician Rules forEvaluation & Management Services

The teaching physician must personally document at least the following:

That they performed the service or were physically present during the key or critical portions of the service when performed by a resident.

The participation of the teaching physician in the management of the patient.

Reviewers will combine the documentation of both the resident and the physician.

Page 61: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Teaching Physician Rules forEvaluation & Management Services

• Documentation by the resident of the presence and participation of the teaching physician is not sufficient to establish the presence and participation of the teaching physician for an Evaluation & Management service.

• The combined entries into the medical record by the TP and the resident must support the medical necessity of the service.

Page 62: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

What Are The Most Recent Changes To The Teaching Physician Requirements?

For E/M services, it is no longer required that the TP document a patient-specific comment related to the history, exam, and medical decision making as required by the code category.

The requirements for TP presence during the critical and key portions of both E/M services and surgical procedures has not changed.

Physicians now have specific examples of minimally acceptable documentation for common E/M scenarios.

Page 63: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

To Whom Do these Rules Apply?

These guidelines apply to medical residents only, those individuals with an M.D. or D.O. degree that meet the definition of a resident. These guidelines do not apply to any other health care service provider other than teaching physicians and residents.

• They do not apply to any kind of student: Nursing, PA, Nurse Practitioner Psychology or otherwise.

• They do not apply to Advance Practice Nurses or Physician’s Assistants

• They do not apply to nurses.• They do not apply to anyone else other than those

individuals meeting the definition of a medical resident.

Page 64: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Scenario 1

Teaching physician personally performs all the required elements of an E/M service without a resident.

Where a resident has written notes, the teaching physician's note may reference the resident's note.

Teaching physician must document that s/he performed the critical or key portion(s) of the service and that s/he was directly involved in the management of the patient.

Page 65: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Acceptable Documentation for Scenario 1 Admitting Note: "I performed a history and physical examination

of the patient and discussed his management with the resident.

I reviewed the resident's note and agree with the documented

findings and plan of care."

Follow-up Visit: "Hospital Day #5. I saw and examined the

patient. I agree with the resident's note except the heart

murmur is louder, so I will obtain an echo to evaluate."

If there are no resident notes, the teaching physician must

document as he/she would document an E/M service in a non-

teaching setting.)

Page 66: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Scenario 2 Resident performs the elements required for

an E/M service in the presence of, or jointly with, the teaching physician and the resident documents the service.

Teaching physician must document that he or she was present during the performance of the critical or key portion(s) of the service and that he or she was directly involved in the management of the patient.

Teaching physician's note should reference the resident's note.

Page 67: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Acceptable documentation for Scenario 2

Initial or Follow-up Visit: "I was present with resident during the history and exam. I discussed the case with the resident and agree with the findings and plan as documented in the resident's note."

Follow-up Visit: "I saw the patient with the resident and agree with the resident's findings and plan."

Page 68: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Scenario 3 Resident performs some or all of the required elements of

the service in the absence of the teaching physician and documents his/her service.

Teaching physician independently performs the critical or key portion(s) of the service with or without the resident present and, as appropriate, discusses the case with the resident.

Teaching physician must document that he or she personally saw the patient, personally performed critical or key portions of the service, and participated in the management of the patient.

Teaching physician's note should reference the resident's note.

Page 69: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Acceptable Documentation for Scenario 3

Initial Visit: "I saw and evaluated the patient. I reviewed the resident's note and agree, except that picture is more consistent with pericarditis than myocardial ischemia. Will begin NSAIDs."

Initial or Follow-up Visit: "I saw and evaluated the patient. Discussed with resident and agree with resident's findings and plan as documented in the resident's note."

Follow-up Visit: "See resident's note for details. I saw and evaluated the patient and agree with the resident's finding and plans as written."

Follow-up Visit: "I saw and evaluated the patient. Agree with resident's note but lower extremities are weaker, now 3/5; MRI of L/S Spine today."

Page 70: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Following are examples of unacceptable documentation: "Agree with above.", followed by legible countersignature or

identity; "Rounded, Reviewed, Agree.", followed by legible

countersignature or identity; "Discussed with resident. Agree.", followed by legible

countersignature or identity; "Seen and agree.", followed by legible countersignature or

identity; "Patient seen and evaluated.", followed by legible

countersignature or identity; and A legible countersignature or identity alone.

Such documentation is not acceptable, because the documentation does not make it possible to determine whether the teaching physician was present, evaluated the patient, and/or had any involvement with the plan of care.

Page 71: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

E/M Service Documentation Provided By Students The only part of a student’s documentation that may be

used by the teaching physician is the Review of Systems and Past Medical, Family and Social History

The teaching physician may not refer to a student's documentation of physical exam findings or medical decision making in his or her personal note.

If the medical student documents E/M services, the teaching physician must verify and redocument the history of present illness as well as perform and redocument the physical exam and medical decision making activities of the service.

Page 72: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Procedures

In order to bill for surgical, high-risk, or other complex procedures, the teaching physician must be present during all critical and key portions of the procedure and be immediately available to furnish services during the entire procedure.

Page 73: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

TP Documentation of Minor Procedures

The TP must be present for the entire procedure in order to bill for the service.

• Minor procedures are not defined within CPT, although the Medicare rule characterizes minor procedures as those taking only a few minutes to complete (5 min or less).

The documentation may be provided by either the resident, the nurse or personally by the TP. If the resident provides the documentation, the attestation may be phrased as follows:

• Dr. TP was present during the entire procedure

• Procedure performed with (by) Dr. TP

Page 74: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Surgery (Including Endoscopic Operations

The teaching surgeon is responsible for the preoperative, operative, and post-operative care of the beneficiary.

The teaching physician's presence is not required during the opening and closing of the surgical field unless these activities are considered to be critical or key portions of the procedure.

The teaching surgeon determines which post-operative visits are considered key or critical and require his or her presence.

Page 75: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Surgery (Including Endoscopic Operations

During non-critical or non-key portions of the surgery, if the teaching surgeon is not physically present, he or she must be immediately available to return to the procedure, i.e., he or she cannot be performing another procedure.

If circumstances prevent a teaching physician from being immediately available, then he/she must arrange for another qualified surgeon to be immediately available to assist with the procedure, if needed.

Page 76: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Single Surgery

When the teaching surgeon is present for the entire surgery, his or her presence may be demonstrated by notes in the medical records made by the physician, resident, or operating room nurse.

For purposes of this teaching physician policy, there is no required information that the teaching surgeon must enter into the medical records.

Page 77: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Two Overlapping Surgeries

In order to bill Medicare for two overlapping surgeries, the TP must be present during the critical or key portions of both operations. Therefore, the critical or key portions may not take place at the same time.

When all of the key portions of the initial procedure have been completed, the TP may begin to become involved in a second procedure.

The TP must personally document in the medical record that he/she was physically present during the critical or key portion(s) of both procedures

Page 78: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Two Overlapping Surgeries

When a TP is not present during non-critical or non-key portions of the procedure and is participating in another surgical procedure, he or she must arrange for another qualified surgeon to immediately assist the resident in the other case should the need arise.

In the case of three concurrent surgical procedures, the role of the TP (but not anesthesiologist) in each of the cases is classified as a supervisory service to the hospital rather than a physician service to an individual patient and is not payable under the physician fee schedule.

Page 79: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Published On August 31, 2001, Philadelphia Inquirer, The (PA)

Surgeon To Pay Back Medicare Over Billing

A nationally recognized Philadelphia orthopedic surgeon agreed yesterday to reimburse the government almost $2 million to settle claims that he billed Medicare for work done by surgical residents and surgical fellows.

In announcing the $1.89 million settlement with Robert Booth Jr., both the surgeon and the U.S. Attorney's Office said the government investigation had nothing to do with the quality of knee and hip replacements and other surgeries performed.

At issue were billings for surgeries performed between January 1, 1995 and June 30, 1997, at Pennsylvania Hospital. The government claimed that Booth had billed Medicare for treatment handled by junior physicians he was training.

Page 80: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Endoscopy Procedures

To bill Medicare for endoscopic procedures (excluding endoscopic surgery that follows the surgery policy), the teaching physician must be present during the entire viewing.

The entire viewing starts at the time of insertion of the endoscope and ends at the time of removal of the endoscope.

Viewing of the entire procedure through a monitor in another room does not meet the teaching physician presence requirement.

Page 81: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Anesthesia Pay an unreduced fee schedule payment if a teaching

anesthesiologist is involved in a single procedure with one resident.

The teaching physician must document in the medical records that he or she was present during all critical (or key) portions of the procedure.

The teaching physician's physical presence during only the preoperative or post-operative visits with the beneficiary is not sufficient to receive Medicare payment.

If an anesthesiologist is involved in concurrent procedures with more than one resident or with a resident and a nonphysician anesthetist, pay for the anesthesiologist's services as medical direction.

Page 82: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Interpretation of Diagnostic Radiology and Other Diagnostic Tests Medicare pays for the interpretation of diagnostic

radiology and other diagnostic tests if the interpretation is performed by or reviewed with a teaching physician.

If the teaching physician's signature is the only signature on the interpretation, Medicare assumes that he or she is indicating that he or she personally performed the interpretation.

If a resident prepares and signs the interpretation, the teaching physician must indicate that he or she has personally reviewed the image and the resident's interpretation and either agrees with it or edits the findings.

Medicare does not pay for an interpretation if the teaching physician only countersigns the resident's interpretation.

Page 83: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Psychiatry The general teaching physician policy applies to

psychiatric services. For certain psychiatric services, the requirement for the

presence of the teaching physician during the service may be met by concurrent observation of the service through the use of a one-way mirror or video equipment.

• Audio-only equipment does not satisfy to the physical presence requirement. In the case of time-based services, such as individual medical psychotherapy, see subsection 8 below.

Further, the teaching physician supervising the resident must be a physician, i.e., the Medicare teaching physician policy does not apply to psychologists who supervise psychiatry residents in approved GME programs.

Page 84: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Time-Based Codes For procedure codes determined on the basis of time, the

teaching physician must be present for the period of time for which the claim is made.

• For example, pay for a code that specifically describes a service of from 20 to 30 minutes only if the teaching physician is present for 20 to 30 minutes. Do not add time spent by the resident in the absence of the teaching physician to time spent by the resident and teaching physician with the beneficiary or time spent by the teaching physician alone with the beneficiary.

• Examples: Critical Care, Psychotherapy

Page 85: Documentation, Coding and Reimbursement Basics Presented by the Office of Reimbursement Compliance Gretchen L. Segado, MS, CPC Director of Reimbursement

Interested in Learning More?Oct 25 Evaluation and Management Coding

This class will cover how to select the proper code levels for office visits, consultations, hospital care and more. 11:30-1 Coles 109

Nov 1 Basics of CPT Coding for Physician PracticesThis is a hands-on beginning level course teaching how to use the CPT manual. Participants will be expected to bring a CPT manual with them to class. Especially recommended for billing personnel, office managers, etc. 11:30-1pm Coles 101

Nov 8 Modifers-Your Key to Proper ReimbursementThis class will cover CPT modifiers and their use. Class appropriate for all specialties, but especially recommended for surgical practices 11:30- 1 Coles 109

Nov 15th Basic ICD-9 Coding for Physician PracticesThis is a hands-on beginning level course teaching how to use the ICD-9 Diagnosis Coding Manual. Participants will be expected to bring an ICD-9 manual with them to class. Especially recommended for billing personnel, office managers, etc. 10:30-12 Coles 109

Nov 22nd Billing for Non-Physician PractitionersIn this seminar you will learn about Medicare's requirements when billing “Incident-to” or “under the doctor’s provider number”; provide the Medicare requirements for billing Medicare directly under a Non-Physician Practitioner's provider number, examine which services can be provided to Medicare patients by nonphysician practitioners; discuss difficulties with Incident-to billing to managed care companies.  10:30-12 Coles 101