Completing the Circle: The Importance of CDI Specialist Participation in the Denial Management Process
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1 Completing the Circle: The Importance of CDI Specialist Participation in the Denial Management Process Sarah Mendiola, Esq., LPN, CPC Senior Associate & Director of Clinical Services Washington & West, LLC Baltimore, MD 1
2 Learning Objectives At the completion of this educational activity, attendees will be able to: Recognize the most recent changes to the 2 midnight rule. Identify how the CDIS can assist in decreasing denials by CMS for a variety of targeted surgical procedures. Understand the current high risk areas for DRG audits. During this presentation, we will focus on sepsis and ICD 10 procedure code issues. 2
3 Steps for Attendees to View/Answer POLLING QUESTIONS 1. Navigate to the event Agenda in the main menu 2. Tap the name of the current session to view the session details page 3. Tap Polls 4. Tap the name of the poll 5. Tap your answer choice and then tap Submit 3
4 Polling Question 1 Are your CDI staff involved in denials prevention and/or appeals? Yes, they are involved in prevention efforts and appeals Yes, but prevention efforts only No, but our CDI physician advisor is No Other/not applicable 4
5 Preventable Denials With CDIS Intervention 1. 2 midnight rule 2. Surgical denials (CMS) 3. Coding issues 5
6 CMS Financial Report: Fiscal Year 2015 The Medicare population is expected to increase from 54 million beneficiaries today to over 80 million beneficiaries by
7 Alphabet Soup of Auditors 7
8 2 Midnight Rule Effective for DOS on or after 10/01/13 Has undergone several modifications/updates since its inception Requirements Inpatient order Expectation of hospitalization spanning two midnights Inpatient only procedures Unforeseen circumstances Case by case review 8
9 2 Midnight Rule: Current Audits QIO review Took over the 2 midnight initial payment reviews from the MAC as of 10/01/15 MAC review Reviews unrelated to patient status (e.g., coding reviews, reviews to determine the medical necessity of the procedure conducted, etc.) RAC review As of January 2016, may conduct patient status reviews only for those providers that have been referred by the QIO as exhibiting persistent noncompliance with Medicare payment policies Probe reviews Conducted for stays > 2 midnights to monitor for evidence of gaming, abuse, or delays in an effort to meet the 2 midnight presumption of medical necessity (CERT, FATHOM, PEPPER) 9
10 2 Midnight Rule: General Rule for Expected 0 to 1 Midnight Stays Revised exceptions policy pursuant to CMS 1633 F: for admissions not meeting the two midnight benchmark, Part A payment is appropriate on a case by case basis where the medical record supports the admitting physician s determination that the patient requires inpatient care, despite the lack of a 2 midnight expectation. QIOs will consider complex medical factors. Procedures defined as inpatient only continue to be an exception 10
11 2 Midnight Rule: General Rule for Expected 2+ Midnight Stays If an unforeseen circumstance results in a shorter length of stay than expected, Part A payment may still be made. The circumstances must be documented in the medical record. Examples: Death Transfer to another facility AMA departure Hospice election Unexpected recovery QIOs will consider complex medical factors that support a reasonable expectation of the needed duration of the stay. 11
12 2 Midnight Rule: Inpatient Order Inpatient order Certification (physician) vs. inpatient order (physician or other qualified practitioner) Other qualified practitioner is one who is: Licensed by the state to admit inpatients to hospitals; Granted privileges by the hospital to admit inpatients to that specific facility; and Knowledgeable about the patient s hospital course, medical plan of care, and current condition at the time of admission HOWEVER, the statute also says The physician order must be furnished at or before the time of the inpatient admission. 12
13 2 Midnight Rule: Inpatient Order Denial Claim denied for lack of physician order Should there be a physician countersignature? 13
14 2 Midnight Rule: Inpatient Order What are the rules in your state regarding admitting practitioners? Can a physician assistant or nurse practitioner admit patients? Is a physician countersignature/chart review required? 14
15 2 Midnight Rule: Expectation For Medicare payment purposes, both the decision to keep the patient at the hospital and the expectation of needed duration of the stay must be supported by documentation in the medical record based on factors such as: beneficiary medical history and comorbidities, the severity of signs and symptoms, current medical needs, and the risk of an adverse event during hospitalization. Do these criteria look familiar? 15
16 2 Midnight Rule: Example of Expectation This is an 84 year old patient admitted for treatment of a COPD exacerbation. She has multiple comorbid conditions including diabetes, CHF, and coronary artery disease. She is at risk for rapid deterioration, respiratory failure, and cardiac ischemia and requires IV antibiotics, frequent nebulizer treatments, and frequent vital signs. I expect that she will require at least two midnights of hospitalization this episode because she typically requires 2 3 days of IV steroids and has increased oxygen needs during these exacerbations. 16
17 2 Midnight Rule: No Expectation 17
18 2 Midnight Rule: No Expectation Change in status documented, but there is no explanation as to why the conversion is appropriate. 18
19 2 Midnight Rule: The Future? Medicare Advantage Non contracted MAOs are using the rule to deny claims Contracted MAOs have started to utilize it as well Medicaid (and Medicaid MCOs) and other commercial insurers may start to use this requirement as well 19
20 CDIS Keys to Prevention Inpatient stay expected 0 1 midnight Make sure the record has: Inpatient order Documentation as to WHY inpatient care is required Complex medical factors Or, is this an inpatient only procedure or newly initiated mechanical ventilation? Inpatient stay expected 2 midnights or more Make sure the record has: Inpatient order Documentation as to why admission is appropriate Documentation to support the expectation of the needed duration Or, were there unforeseen circumstances that occurred? 20
21 CMS and Surgical Denials Surgical claims are often higher dollar claims Often selected for prepayment review by the MAC Selected for post payment review by the SMRC and the RAC Claims are denied for lack of medical necessity for the procedure itself If CMS denies the surgery for an inpatient admission, the entire stay is denied Easy way for high dollar recoveries for CMS 21
22 CMS and Surgical Denials Musculoskeletal Spinal fusion (DRGs ) No NCD for lumbar or cervical fusion Some LCDs for lumbar fusion TKR/THR (DRGs ) No NCD, some draft LCDs MLN Matters Number SE1236 requires documentation not typically contained in the inpatient record Kyphoplasty & vertebroplasty No NCD, various LCDs by contractor 22
23 CMS and Surgical Denials Cardiac Pacemakers & AICDs NCDs 20.8 & 20.4 There are also decision memos issued in addition to the NCDs which may provider further guidance Bariatric NCD However, certain procedure/diagnosis codes may trigger an automated denial even if the surgery is NOT bariatric in nature 23
24 CMS and Surgical Denials: Remit Denial Remit will typically deny the service as non covered or not medically necessary Denials are sometimes difficult to decode on the back end Prevention of the denial is key MA02 Claim Level: CO A1 Claim denied charges. MA02 Alert: If you do not agree with this determination, you have the right to appeal. 24
25 CMS and Surgical Denials: Example ADR/Denial Electronic denials/rejections are being issued due to a specific code billed on the claim 25
26 Major Joint Replacement (CMS): Example ADR 26
27 Major Joint Replacement (CMS): Appeal Denial 27
28 Major Joint Replacement (CMS): CJR CMS issued final rules for the Comprehensive Care for Joint Replacement (CJR) model on November 24, Bundled payments for episodes of care for lower extremity joint replacement. All related care within 90 days of hospital discharge from the joint replacement procedure will be included in the episode of care. While this is deemed a test of the payment model, participation is not voluntary. CMS is requiring hospitals in 67 geographic areas to participate in the test of the payment model. The first performance year begins on April 1,
29 Major Joint Replacement (CMS): Prevention Physician education Physician and facility claims are becoming linked for reimbursement Denial of related physician claims for surgical procedures Transmittal 541, issued 9/12/14, states When the Part A Inpatient surgical claim is denied as not reasonable and necessary, the MAC may recoup the surgeon s Part B services.» Allows for the possibility of future expansion.» However, CMS approval is needed prior to initiating related claims review. 29
30 What Is a Provider Expected to Know? Know what you should have known CMS presumes your knowledge of every word of every statute, rule, NCD/LCD, manual, transmittal, etc. Administrative Law Judge comment in an unfavorable ALJ decision: The Provider was unquestionably aware of the CMS regulations, manuals and rulings, CMS bulletins, past unfavorable CMS contractor actions and the lack of substantiating medical records. See 42 CFR Section (e) (knowledge presumed from experience and constructive notice of CMS publications). 30
31 CDIS Keys to Prevention Pre operatively Ensure all documents are present from referring provider or patient. H&P Records of conservative treatment prior to surgical intervention For elective procedures, can you postpone scheduling until they are received? Is there an NCD, LCD, or other clinical policy guidance for the procedure? Is it met? Post operatively Gather all pre operative documents that are necessary and merge them with the existing record. Is there an NCD, LCD, or other clinical policy guidance for the procedure? Is it met? Pay close attention to coding! Was this an inpatient only procedure? Was this a procedure excluded by CMS? Are there specific diagnosis codes that must be on the claim for reimbursement? 31
32 Coding 5,000+ ICD 10 codes are to be added in FY 2017! CMS and the CDC will add 1,900 diagnosis codes and 3,651 hospital inpatient procedure codes to the ICD 10 coding system for fiscal year According to the AHA, the new codes are being added now because there was a freeze on updates to ICD 10 codes before the October 1 implementation date. 32
33 Coding: Denial Issues Two different denials for coding audits: Coding error Documenting the clinical basis without the diagnosis being listed Assumption coding The documentation lacks supporting evidence for the diagnosis of Documenting the diagnosis with no clinical basis indicated in the medical record Example: Records indicate that the patient has acute respiratory failure, but clinical information does not support the diagnosis 33
34 Coding: Sepsis Sepsis codes are often removed from the case mix as principal and/or secondary codes Typically denied as not meeting clinical criteria for sepsis 34
35 Coding: Sepsis Clinical guidelines for sepsis and septic shock were last updated in 2001, but have remained largely unchanged since 1991 Initial definitions focused on the then prevailing view that sepsis resulted from a host s systemic inflammatory response syndrome (SIRS) to infection 35
36 Coding: Sepsis New Sepsis 3 guideline The current use of 2 or more SIRS criteria to identify sepsis was unanimously considered by the task force to be unhelpful. Sepsis should be defined as life threatening organ dysfunction caused by a dysregulated host response to infection. qsofa score; 2 or more of the following is indicative of poor outcomes typical of sepsis : Respiratory rate of 22/min or greater; Altered mentation; or Systolic BP of 100 mm Hg or less 36
37 Coding: Sepsis (Septic Shock) Septic shock should be defined as a subset of sepsis in which particularly profound circulatory, cellular, and metabolic abnormalities are associated with a greater risk of mortality than with sepsis alone. Patients with septic shock can be clinically identified by a vasopressor requirement to maintain a mean arterial pressure of 65 mm Hg or greater and serum lactate level greater than 2 mmol/l (>18 mg/dl) in the absence of hypovolemia. 37
38 Coding: Sepsis The criteria is very specific. Pro? Could decrease instances of inaccurate coding when the conditions are met. Con? Payers may utilize for denial purposes even though the criteria is not universally accepted. 38
39 Coding: Procedure Code Issues More coding denials for procedural coding errors. The seven characters for medical and surgical procedures have the following meaning: Character 1 = Section Character 2 = Body system Character 3 = Root operation Character 4 = Body part Character 5 = Approach Character 6 = Device Character 7 = Qualifier 39
40 Coding: Procedure Code Issues Character 3 = Root operation There are 31 different root operation values. CMS says: There is a clear distinction between each root operation. Most common issue that we see is in the root operations that take out some or all of a body part. Excision vs. Resection vs. Extraction 40
41 Coding: Procedure Code Issues Character 5 = Approach There are seven different approaches The approach is comprised of three components: the access location, method, and type of instrumentation Most common issue that we see is in deciphering the type of opening Open vs. Percutaneous vs. Via natural or artificial opening 41
42 DRGs Projected for Audit Scrutiny in : Non specific CVA and precerebral occlusion w/o infarct w/o MCC 192: Chronic obstructive pulmonary disease w/o CC/MCC 195: Simple pneumonia and pleurisy w/o CC/MCC 293: Heart failure and shock w/o CC/MCC 308: Cardiac arrhythmia and conduction disorders w/mcc (and DRGs ) (AFIB) 312: Syncope and collapse 602: Cellulitis w/mcc 684: Renal failure w/o CC/MCC 689: Kidney and urinary tract infections w/ MCC 872: Septicemia w/o MV 96+ hours w/o MCC According to National Government Services (Part A MAC, Jurisdiction K) 42
43 CDIS Keys to Prevention Sepsis/diagnosis code issues Know what diagnosis codes are being targeted (MCCs and CCs) Documentation of the diagnosis alone is not sufficient Is the clinical documentation there to support the diagnosis? Check for conflicting documentation, and Confirmation of the diagnosis by the attending physician Procedure code issues Consider assigning a designated staff for billing surgical claims Periodic anatomy & physiology refreshers, especially when new surgical techniques (or procedure codes) are implemented Interactive meetings with the surgical team and coders regarding common techniques utilized by each surgeon 43
44 If Prevention Is Not Enough Appeal! Know your appeal rights with your contracted, not contracted, and governmental payers; and exercise them Appeals should include: A clear explanation of why the denial is incorrect, utilizing: Clinical and/or coding arguments Cite the applicable policy or coding guidance in support of your argument Legal arguments Applicable contract terms State or federal law (as applicable) 44
45 Thank you. Questions? In order to receive your continuing education certificate(s) for this program, you must complete the online evaluation. The link can be found in the continuing education section at the front of the program guide. 45
46 Please Note Washington & West, LLC is not a law firm. The information conveyed in this presentation is for general educational purposes and is not legal advice. The application and impact of laws can vary widely based on the specific facts involved. Given the constantly changing nature of state and federal laws, there may be omissions or inaccuracies in the information you receive during this program. Accordingly, any information is provided with the understanding that the presenter is not rendering legal, accounting, or other professional advice and services. As such, any information obtained in this presentation should not be used as a substitute for consultation with legal counsel or other professional advisors specifically retained for that purpose. While Washington & West, LLC has made every attempt to ensure that the information contained in these materials is generally useful for educational purposes, Washington & West, LLC and its agents and employees are not responsible for any errors or omissions, or for the results obtained through the use of any information herein. 46
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