Hospital Acquired Conditions
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- Candice Malone
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1 Policy Number HAC RP Hospital Acquired Conditions Approved By UnitedHealthcare Medicare Committee Current Approval Date 08/27/2014 IMPORTANT NOTE ABOUT THIS REIMBURSEMENT POLICY This policy is applicable to UnitedHealthcare Medicare Advantage Plans offered by UnitedHealthcare and its affiliates. You are responsible for submission of accurate claims. This reimbursement policy is intended to ensure that you are reimbursed based on the code or codes that correctly describe the health care services provided. UnitedHealthcare reimbursement policies use Current Procedural Terminology (CPT *), Centers for Medicare and Medicaid Services (CMS), or other coding guidelines. References to CPT or other sources are for definitional purposes only and do not imply any right to reimbursement. This reimbursement policy applies to all health care services billed on CMS 1500 forms and, when specified, to those billed on UB04 forms (CMS 1450). Coding methodology, industry-standard reimbursement logic, regulatory requirements, benefits design and other factors are considered in developing reimbursement policy. This information is intended to serve only as a general resource regarding UnitedHealthcare s reimbursement policy for the services described and is not intended to address every aspect of a reimbursement situation. Accordingly, UnitedHealthcare may use reasonable discretion in interpreting and applying this policy to health care services provided in a particular case. Further, the policy does not address all issues related to reimbursement for health care services provided to UnitedHealthcare enrollees. Other factors affecting reimbursement may supplement, modify or, in some cases, supersede this policy. These factors may include, but are not limited to: legislative mandates, the physician or other provider contracts, and/or the enrollee s benefit coverage documents. Finally, this policy may not be implemented exactly the same way on the different electronic claims processing systems used by UnitedHealthcare due to programming or other constraints; however, UnitedHealthcare strives to minimize these variations. UnitedHealthcare may modify this reimbursement policy at any time by publishing a new version of the policy on this Website. However, the information presented in this policy is accurate and current as of the date of publication. *CPT copyright 2010 (or such other date of publication of CPT) American Medical Association. All rights reserved. CPT is a registered trademark of the American Medical Association. Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Table of Contents Application...1 Summary...2 Overview...2 Reimbursement Guidelines...6 Questions and Answers...7 References Included (but not limited to):...7 CMS Transmittals...7 MLN Matters...7 Others...7 History...8 Application This reimbursement policy applies to services reported using the Health Insurance Claim Form CMS-1500 or its electronic equivalent or its successor form, and services reported using facility claim form CMS-1450 or its electronic equivalent or its successor form. This policy applies to all products, all network and non-network physicians, and other health care professionals. The HCPCS/CPT code(s) may be subject to Correct Coding Initiative (CCI) edits. This policy does not take precedence over CCI edits. Please refer to the CCI for correct coding guidelines and specific applicable code combinations prior to billing UnitedHealthcare. It is not enough to link the procedure code to a correct, payable ICD-9-CM diagnosis code. The diagnosis must be present for the procedure to be paid. Compliance with the provisions in this policy is subject to monitoring by pre-payment review and/or post-payment data analysis and subsequent medical review. The effective date of changes/additions/deletions to this policy is the Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 1
2 committee meeting date unless otherwise indicated. CPT codes and descriptions are copyright 2010 American Medical Association (or such other date of publication of CPT). All rights reserved. CPT is a registered trademark of the American Medical Association. Applicable FARS/DFARS restrictions apply to Government use. Fee schedules, relative value units, conversion factors, and/or related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability for data contained or not contained herein. Current Dental Terminology (CDT), including procedure codes, nomenclature, descriptors, and other data contained therein, is copyright by the American Dental Association, 2002, All rights reserved. CDT is a registered trademark of the American Dental Association. Applicable FARS/DFARS apply. Summary Overview Hospital Acquired Conditions (HAC) are serious conditions that patients get during an inpatient hospital stay. If hospitals follow proper procedures, patients are less likely to get these conditions. UHC doesn't pay for any of these conditions, and patients can't be billed for them, if acquired while in the hospital. UHC will only pay for these conditions if they were present on admission to the hospital. The Centers for Medicare & Medicaid Services (CMS) payment provisions for preventable hospital-acquired conditions (HAC) are one of many recent CMS value-based purchasing initiatives through which the Medicare program is striving to tie payment to performance. Through collaboration with the Centers for Disease Control and Prevention (CDC) and extensive public input, CMS identified 11 HACs as being reasonably preventable based on the application of published, evidence-based guidelines and thus targeted these HACs for program payment reductions. Selected HACs have to be conditions that are high volume and/or high cost, be identified in the CMS grouper as a complication or comorbidity (CC) or major complication or comorbidity (MCC) for purposes of Medicare Severity Diagnosis Related Grouper (MS-DRG) assignment, and be reasonably preventable using evidence-based guidelines. Section 5001(c) of Deficit Reduction Act of 2005 requires the Secretary to identify conditions that are: (a) high cost or high volume or both, (b) result in the assignment of a case to a DRG that has a higher payment when present as a secondary diagnosis, and (c) could reasonably have been prevented through the application of evidence-based guidelines. On July 31, 2008, in the Inpatient Prospective Payment System (IPPS) Fiscal Year (FY) 2009 Final Rule, CMS included 10 categories of conditions that were selected for the HAC payment provision. Payment implications began October 1, 2008, for these Hospital Acquired Conditions. In August 2012, CMS published the Inpatient Prospective Payment System (IPPS) Fiscal Year (FY) 2013 Final Rule. The Final Rule discusses the addition of two new HACs, one of which is a new Surgical Site Infection Following Cardiac Implantable Electronic Device (CIED) and the other is Iatrogenic Pneumothorax with Venous Catheterization. These 11 categories of HACs listed below include the new HACs from the IPPS FY 2013 Final Rule (See Table 1): *Denotes new in FY Foreign object retained after surgery 2. Air embolism 3. Blood incompatibility 4. Pressure ulcers (Stage III and IV) 5. Injuries from falls and trauma (fractures, dislocations, intracranial injuries, crushing injuries, burns, other injuries) 6. Deep vein thrombosis (DVT)/pulmonary embolism (PE) following certain orthopedic procedures: total knee replacement or hip replacement 7. Manifestations of poor glycemic control (Diabetic ketoacidosis, Hypoglycemic coma, Nonketotic hyperosmolar coma; Secondary diabetes with ketoacidosis or hyperosmolarity) 8. Catheter-associated urinary tract infection (UTI) 9. Vascular catheter-associated infection 10. Surgical site infection (SSI) following Coronary Artery Bypass Graft (mediastinitis), Cardiac Implantable Electronic Device (CIED)*, bariatric surgery for obesity (laparoscopic gastric bypass, gastroenterostomy, or laparoscopic gastric restrictive surgery), or certain orthopedic procedures (spine, neck, shoulder, or elbow). Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 2
3 11. Iatrogenic pneumothorax with venous catheterization* Table 1: HACs and ICD-9-CM Codes HAC Foreign Object Retained After Surgery Air Embolism Blood Incompatibility Pressure Ulcer Stages III & IV Falls and Trauma Fracture Dislocation Intracranial Injury Crushing Injury Burn Other injuries Catheter-Associated Urinary Tract Infection (UTI) Vascular Catheter-Associated Infection Manifestations of Poor Glycemic Control Diabetic Ketoacidosis Nonketotic Hyperosmolar Coma Hypoglycemic Coma Secondary Diabetes with Ketoacidosis Secondary Diabetes with Hyperomolarity Surgical Site Infection, Mediastinitis, following Coronary Artery Bypass Graft (CABG) Surgical Site Infection Following Certain Orthopedic Procedures: (CC) (CC) (MCC) (CC) (CC) (CC) (CC) (CC) (MCC) (MCC) CC/MCC (ICD-9-CM Codes) Codes within these ranges on the CC/MCC list: (CC) Also excludes the following from acting as a CC/MCC: (CC) (CC) (MCC) (MCC) (CC) (CC) (CC) (CC) (CC) (CC) (CC) (CC) (CC) (MCC) (MCC) (CC) (MCC) (MCC) (MCC) And one of the following procedure codes: (CC) Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 3
4 Spine Neck Shoulder Elbow Hospital Acquired Conditions (CC) And on of the following procedure codes: , , , 81.83, or Surgical Site Infection Following Bariatric Surgery for Obesity: Laparoscopic Gastric Bypass Gastroenterostomy Laparoscopic Gastric Restrictive Surgery Surgical Site Infection Following Cardiac Implantable Electronic Device (CIED) Deep Vein Thrombosis and Pulmonary Embolism Following Certain Orthopedic Procedures: Total Knee Replacement Hip Replacement Iatrogenic Pneumothorax with Venous Catheterization Principal Diagnosis: (CC) (CC) (CC) And one of the following procedure codes: 44.38, 44.39, or (CC) (CC) And one of the following procedure codes: 00.50,00.51,00.52,00.53,00.54, 37.80,37.81,37.82, 37.83, 37.85, 37.86, 37.87, 37.94, 37.96, 37.98, 37.74, 37.75, 37.76, 37.77, 37.79, (MCC) (MCC) (MCC) (CC) And one of the following procedure codes: , , or (CC) And the following procedure code: (CC) Complication or comorbidity (MCC) Major complication or comorbidity Present on Admission Guidelines To group diagnoses into the proper DRG, CMS needs to capture a Present on Admission (POA) Indicator for all claims involving inpatient admissions to general acute care hospitals. Collection of POA indicator data is necessary to identify which conditions were acquired during hospitalization for the HAC payment provision as well as for broader public health uses of Medicare data. Use the UB-04 Data Specifications Manual and the ICD-9-CM Official Guidelines for Coding and Reporting to facilitate the assignment of the POA indicator for each "principal" diagnosis and "other" diagnoses codes reported on claim forms UB-04 and 837 Institutional. The POA Indicator guidelines are not intended to provide guidance on when a condition should be coded, rather to provide guidance on how to apply the POA Indicator to the final set of diagnosis codes that have been assigned in accordance with Sections I, II, and III of the official coding guidelines. Subsequent to the assignment of the ICD-9-CM codes, the POA Indicator should be assigned to all diagnoses that have been coded. A joint effort between the healthcare provider and the coder is essential to achieve complete and accurate documentation, code assignment, and reporting of diagnoses and procedures. The importance of consistent, complete documentation in the medical record cannot be overemphasized. Medical record documentation from any qualified healthcare practitioner who is legally accountable for establishing the patient's diagnosis. The provider, a provider's billing office, third party billing agents and anyone else involved in the transmission of this data shall insure that any re-sequencing of diagnosis codes prior to transmission to CMS also includes a re-sequencing of the POA Indicators. General POA Reporting Requirements POA indicator reporting is mandatory for all claims involving inpatient admissions to general acute care Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 4
5 hospitals or other facilities. POA is defined as present at the time the order for inpatient admission occurs. Conditions that develop during an outpatient encounter, including emergency department, observation, or outpatient surgery, are considered POA. A POA Indicator must be assigned to principal and secondary diagnoses (as defined in Section II of the Official Guidelines for Coding and Reporting) and the external cause of injury codes. CMS does not require a POA Indicator for an external cause of injury code unless it is being reported as an "other diagnosis." Issues related to inconsistent, missing, conflicting, or unclear documentation must be resolved by the provider. If a condition would not be coded and reported based on Uniform Hospital Discharge Data Set definitions and current official coding guidelines, then the POA Indicator would not be reported. Table 2 includes a list of the POA indicator reporting options, descriptions, and Medicare payment based on the Inpatient Prospective Payment System (IPPS) Fiscal Year (FY) 2011 Final Rule, published by CMS in August The Final Rule made a change to POA indicator reporting. Effective January 1, 2011, hospitals reporting with the 5010 format will no longer report a POA indicator of 1 for POA exempt codes. POA Documentation The importance of consistent, complete documentation in the medical record cannot be overemphasized. Medical record documentation from any provider involved in the care and treatment of the patient may be used to support the determination of whether a condition was present on admission. In the context of the official coding guidelines, the term provider means a physician or any qualified health care practitioner who is legally accountable for establishing the patient s diagnosis. NOTE: Providers, their billing offices, third party billing agents, and anyone else involved in the transmission of this data must ensure that any re-sequencing of ICD-9-CM diagnosis codes prior to their transmission to CMS also includes a re-sequencing of the POA indicators. Table 2: CMS POA Indicator Reporting Options, Description, and Payment INDICATOR DESCRIPTION MEDICARE PAYMENT Y Diagnosis was present at time of inpatient admission. N Diagnosis was not present at time of inpatient admission. U Documentation insufficient to determine if condition was present at the time of inpatient admission. W Clinically undetermined. Provider unable to clinically determine whether the condition was present at the time of inpatient admission. 1 Exempt from POA reporting. This code is the equivalent of a blank on the UB-04, however, it was determined that blanks were undesirable on Medicare claims when submitting this data via the /00410A1. NOTE: The number 1 is no longer valid on claims submitted under the version 5010 format, effective January 1, The POA field will instead be left blank for codes exempt from POA reporting. Please refer to Transmittal R756OTN, Change Request (CR) 7024 on the CMS website. Payment made for condition by Medicare, when an HAC is present No payment made for condition by Medicare, when an HAC is present No payment made for condition by Medicare, when an HAC is present Payment made for condition by Medicare, when an HAC is present Exempt from POA reporting Paper Claims On the UB-04, the POA indicator is the eighth digit of Field Locator (FL) 67, Principal Diagnosis, and the eighth digit of each of the Secondary Diagnosis fields, FL 67 A-Q. In other words, report the applicable POA indicator (Y, N, U, or W) for the principal and any secondary diagnoses and include this as the eighth digit; leave this field blank if the diagnosis is exempt from POA reporting. Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 5
6 Electronic Claims Using the 837I, submit the POA indicator in segment K3 in the 2300 loop, data element K301. Example 1: POA indicators for an electronic claim with one principal and five secondary diagnoses should be coded as POAYNUW1YZ. POA is always required first, followed by a single indicator for every diagnosis POA reported on the claim. The principal diagnosis is always the first indicator after POA. In this example, the principal Y diagnosis was present on admission. N U W 1 Y Z The first secondary diagnosis was not present on admission, designated by N. It was unknown if the second secondary diagnosis was present on admission, designated by U. It is clinically undetermined if the third secondary diagnosis was present on admission, designated by W. The fourth secondary diagnosis was exempt from reporting for POA, designated by 1. NOTE: Hospitals reporting with the 5010 format on and after January 1, 2011 will no longer report a POA indicator of 1 for POA exempt codes. The POA field will instead be left blank for codes exempt from POA reporting. The fifth secondary diagnosis was present on admission, designated by Y. The last secondary diagnosis indicator is followed by the letter Z to indicate the end of the data element. Example 2: POA indicator for an electronic claim with one principal diagnosis without any secondary diagnosis should be coded as POAYZ. POA is always required first, followed by a single indicator for every diagnosis POA reported on the claim. The principal diagnosis is always the first indicator after POA. In this example, the principal Y diagnosis was present on admission. Z The letter Z is used to indicate the end of the data element. At this time, the following hospitals are EXEMPT from the POA indicator requirement: Critical Access Hospitals (CAHs), Long-Term Care Hospitals (LTCHs), Maryland Waiver Hospitals, Cancer Hospitals, Children s Inpatient Facilities, Rural Health Clinics, Federally Qualified Health Centers (FQHCs), Religious Non-Medical Health Care Institutions, Inpatient Psychiatric Hospitals, Inpatient Rehabilitation Facilities (IRFs), and Veterans Administration/Department of Defense Hospitals Reimbursement Guidelines For discharges occurring on or after October 1, 2008, hospitals will not receive additional payment for cases in which one of the selected conditions was not present on admission. That is, the case would be paid as though the secondary diagnosis were not present. The Present on Admission Indicator Reporting provision applies only to IPPS hospitals. CMS also required hospitals to report present on admission information for both primary and secondary diagnoses when submitting claims for discharges on or after October 1, POA Exempt Diagnosis Codes Certain diagnosis codes are exempt for POA reporting. It important to review this list to ensure inpatient claims are submitted correctly. In August 2012, CMS published the Inpatient Prospective Payment System Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 6
7 (IPPS) Fiscal Year (FY) 2013 Final Rule which included two additional ICD-9-CM codes for the Vascular Catheter-Associated Infection HAC Category. Accessing the POA Exempt Diagnosis Code list: Go to Select "Medicare" Select "Hospital Acquired Conditions (Present on Admission Indicator)" Select "Coding" Select "POA Exempt Diagnosis Codes" under Downloads section Questions and Answers 1 Q: Do the POA and Hospital-Acquired Conditions (HAC) programs apply to outpatient or ambulatory surgery services? A: No, this program is only for inpatient acute care admissions. Q: If the POA indicator is not on the claim, will the claim be returned? 2 A: Beginning with claims with discharges on or after October 1, 2008, if hospitals do not report a valid POA code for each diagnosis on the claim, the claim will be returned to the hospital for correct submission of POA information. References Included (but not limited to): CMS Transmittals Transmittal 756, Change Request 7024, Dated 08/13/2010 (5010 Implementation Changes to Present on Admission (POA) Indicator 1 and the K3 Segment) Transmittal 1019, Change Request 1019, Dated 01/25/2012 (Update to the Fiscal Year (FY) 2012 List of Codes Exempt from Reporting Present on Admission (POA)) Transmittal 1240, Change Request 5499, Dated 05/11/2007 (Present on Admission Indicator) MLN Matters Article MM5499, Present on Admission (POA) Indicator Article MM6086 Revised, Hospitals Exempt from Present on Admission (POA) Reporting (i.e. non-inpatient Prospective Payment System (IPPS) Hospitals) and the Grouper Article MM7024 Revised, Version 5010 Implementation Changes to Present on Admission (POA) Indicator 1 and the K3 Segment Article SE1131 Revised, Revised Important Update Regarding 5010/D.0 Implementation Action Needed Now Article , Present on Admission (POA) Indicator Reporting by Acute Inpatient Prospective Payment System (IPPS) Hospitals Fact Sheet; October 2011 (ICN901046) Article , Hospital-Acquired Conditions (HAC) in Acute Inpatient Prospective Payment System (IPPS) Hospitals Fact Sheet Article MM8546 Revised, Addition of New Fields and Expansion of Existing Model 1 Discount Percentage Field in the Inpatient Hospital Provider Specific File (PSF) and Renaming Payment Fields in the Inpatient Prospective Payment System (IPPS) Pricer Output Others Hospital-Acquired Conditions (Present on Admission Indicator), CMS website Hospital-Acquired Conditions, Present on Admission (POA), Coding Fiscal Year 2015 Policy and Payment Changes for Inpatient Stays in Acute-Care Hospitals and Long-Term Care Hospitals Federal Register, Vol. 77, No. 170; Part II, Department of Health and Human Services, Dated August 31, 2012 Rules and Regulations, U.S. Government Printing Office Website RTI Project Final Report, Evidence-based Guidelines for Selected and Previously Considered Hospital-Acquired Conditions, CMS Website RTI Project Final Report, Readmissions Due to Hospital-Acquired Conditions (HACs): Multivariate Modeling and Under-coding Analyses, CMS Website Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 7
8 History Date Revisions 08/27/2014 Annual review 07/24/2013 Re-review of policy presented to MRPC for approval 02/29/2012 Policy Created and Approved 10/01/2008 Policy Implemented Proprietary information of UnitedHealthcare. Copyright 2014 United HealthCare Services, Inc. Page 8
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