OVERVIEW OF THE FY 2017 IPPS FINAL RULE
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1 OVERVIEW OF THE FY 2017 IPPS FINAL RULE SUMMARY OF CODING ELEMENTS Published in the Federal Register August 22nd Rule to take effect October 1 st
2 MS-DRG CHANGES Two procedure codes were omitted from MS DRGs 001 and 002 (Heart Transplant) 02RK0JZ and 02RL0JZ (Biventricular heart replacements) Mechanical complications of the nervous system including devices, implants, grafts, implanted electronic neurostimulator of the brain will be moved from MS DRGS (Complications of Treatment) to MS DRG (Other Disorders of the Nervous System) FY 2016 FY 2017 RW Change 919 (1.7611) 091 (1.5764) (0.1847) 920 (0.9991) 092 (0.9201) (0.0690) 921 (0.6960) 093 (0.7064) (0.0104) 9/6/2016 NHA/SMA 2
3 MS-DRG CHANGES MS DRGs (Minor Skin Disorders): Diagnosis code R22.2 (Localized swelling, trunk) moved from MDC 4 (Respiratory) to MDC 9 (Skin, Subcutaneous Tissue, and Breast) Procedure codes 06CV3ZZ and 06CY3zz moved from DRGs 268 and 269 (Aortic and Heart Assist Procedures Except Pulsation Balloon) to 270, 271, and 272 (Other Major Cardiovascular Procedures) FY 2016 FY 2017 RW Change 268 (6.2067) 270 (4.7589) (1.4498) 269 (3.9041) 271 (3.1272) (0.7769) 272 (2.3120) (1.5921) 9/6/2016 NHA/SMA 3
4 MS-DRG CHANGES MS DRGs (Permanent Cardiac Pacemaker Implant) added procedures that were missed due to replication error Update to logic for pacemakers Insertion requires an inserting a generator and lead(s) Replacement requires insertion of a generator Revision requires codes from insertion, removal, revision, or insertion of hemodynamic devices Updated ICD 10 PCS code titles for these procedures 9/6/2016 NHA/SMA 4
5 MS-DRG CHANGES MS DRG (Other Cardiothoracic Procedures) Delete MS DRG 230 (Other Cardiothoracic Procedures) from FY 2016 FY 2016 FY 2017 RW Change 228 (6.9512) 228 (7.0869) (4.5589) 229 (4.7459) (4.3018) Deleted 273 (3.5499) (2.4197) MitraClip (02UG3JZ) will be reassigned from 273/274 (Percutaneous Intracardiac Procedures) to 228/229 (Other Cardiothoracic Procedures) 9/6/2016 NHA/SMA 5
6 MS-DRG CHANGES MS DRGs (Other Major Cardiothoracic Procedures) Reclassify the bypass of the portal vein to lower vein with transluminal device, percutaneous approach (06183DY) from to MS DRGs (Pancreas, Liver & Shunt Procedures) Also known as TIPS procedure FY 2016 FY 2017 RW Change 270 (4.7349) 405 (5.4464) (3.1426) 406 (2.7825) (0.3601) 272 (2.2508) 407 (2.0118) (0.2390) 9/6/2016 NHA/SMA 6
7 MS-DRG CHANGES MS DRGs (Anal and Stomal Procedures) Excision of duodenum and ileum are moved from MS DRGs (Anal and stomal procedures) to MS DRGs (Major small and large bowel procedures) FY 2016 FY 2017 RW Changes 347 (2.4457) 329 (4.9612) (1.4486) 330 (2.5405) (0.9265) 331 (1.6623) /6/2016 NHA/SMA 7
8 MS-DRG CHANGES MS DRGs (Revision of Hip/Knee Replacements) Removal of spacer and replacement of joint procedures added to the methodology There were 58 combinations added due to replication error FY 2016 FY 2017 RW Changes 466 (5.0394) 466 (5.0249) (0.0145) 467 (3.4376) 467 (3.4412) (2.7513) 468 (2.7936) MS DRG 885 (Organic Disturbances and Mental Retardation) title will change to Organic Disturbances and intellectual Disabilities 9/6/2016 NHA/SMA 8
9 MS-DRG CHANGES MS DRGs (Spinal Fusion Except Cervical) The following diagnoses will be removed from the secondary diagnosis list from MS DRGs M40.50 (Lordosis, unspecified, unspecified site) M40.55 (Lordosis, unspecified, thoracolumbar) M40.56 (Lordosis, unspecified, lumbar) M40.57 (Lordosis, unspecified, lumbosacral) MS DRGs (Rectal Resection); (Pelvic Evisceration) Procedure clusters for the resection of bladder, urethra, bilateral ovaries, bilateral fallopian tubes, uterus, cervix, and vagina will be removed from MDC 6 (Digestive System), MS DRGs (Rectal Resection) These clusters will be maintained in MDC 13 (Female Reproductive System), MS DRGs (Pelvic Evisceration, Rad Hysterectomy & Rad Vulvectomy) 9/6/2016 NHA/SMA 9
10 MS-DRG CHANGES Collapse coding for MS DRGs (Other Cardiothoracic Procedures) from three severity levels to two Modify title of MS DRG 229 to reflect a without MCC designation If finalized, delete codes 02UG3JZ and from Percutaneous Transluminal Coronary Artery (PTCA) list in MS DRGs (Coronary Bypass w/ PTCA) 9/6/2016 NHA/SMA 10
11 MS-DRG REPLICATION ISSUES Angioplasty of extracranial vessel 41 codes with open approach grouped to (Extensive O.R. Procedure Unrelated to Principal Diagnosis) and should have grouped (Extracranial Procedures) FY 2016 FY 2017 RW Change 981 (4.8532) 037 (3.0795) (1.7737) 982 (2.7416) 038 (1.5762) (0.8398) 983 (1.7615) 039 (1.0818) (0.6797) Excision of abdominal arteries (38.86) 34 codes (aneurysmectomy) in V33 were assigned to MDC 5 (Circulatory) replication was appropriate, but these codes should have been added to MDCs 6 (Digestive), 11 (Kidney and Urinary Tract), 21 (Injury and Poisoning), 24 (Multiple Significant Trauma) 9/6/2016 NHA/SMA 11
12 MS-DRG REPLICATION ISSUES Excision of retroperitoneal tissue (54.4) Codes 0WBH0ZZ, 0WBH3ZZ, and 0WBH4ZZ were assigned to (Extensive O.R. Procedure Unrelated to Principal Diagnosis), but should have been assigned to (Other Digestive System O.R. Procedures) FY 2016 FY 2017 RW Change 981 (4.8532) 356 (3.8503) (1.0029) 982 (2.716) 357 (2.0749) (0.6667) 983 (1.7615) 358 (1.3550) (0.4065) Procedure on Vascular Bodies Chemoreceptors (39.89) 234 procedure codes omitted from MS DRG (Other Vascular Procedures) 9/6/2016 NHA/SMA 12
13 MS-DRG REPLICATION ISSUES Occlusion of Esophageal Varices (42.91) Codes 06L30CZ and 06L30DZ should have been assigned to (Other Hepatobiliary or Pancreas O.R. Procedures) were assigned to (Extensive O.R. Procedure Unrelated to Principal Diagnosis) FY 2016 FY 2017 RW Change 981 (4.8532) 423 (4.4817) (0.3715) 982 (2.716) 424 (2.3553) (0.3863) 983 (1.7615) 425 (1.5207) (0.2408) Repair of Intestine (46.79) Procedure codes 0DQF0ZZ, 0DQG0ZZ, 0DQL0ZZ, and 0DQM0ZZ omitted from MS DRGs (Major Small & Large Bowel Procedure) 9/6/2016 NHA/SMA 13
14 MS-DRG REPLICATION ISSUES Obstetric laceration repair Multiple ICD 10 PCS codes were assigned to (Non Extensive O.R. Procedure Unrelated to Principal Diagnosis), but should have been assigned to 774 (Vaginal Delivery w/ Complicating Diagnosis) FY 2016 FY 2017 RW Change 987 (3.2123) 774 (0.7962) (2.4161) 988 (1.7533) (0.9571) 989 (1.0425) (0.2463) Procedures on Breast (86.59) Codes 0HQVXZZ AND 0HQYXZZ (assigned to MS DRGs : Extensive O.R. Procedure Unrelated to Principal Diagnosis) are not longer OR procedures 9/6/2016 NHA/SMA 14
15 MS-DRG REPLICATION ISSUES Excision of Vulva (71.3) Code 0UBMXZZ was assigned to (Extensive O.R. Procedure Unrelated to Principal Diagnosis), but should have been assigned to (Vagina, Cervix & Vulva Procedures) FY 2016 FY 2017 RW Change 981 (4.8532) 746 (4.4817) (3.3782) 982 (2.7416) (1.2666) 983 (1.7615) 747 (2.3553) (0.8251) Shoulder Replacement (78.42) Codes 0PRC0JZ AND 0PRD0JZ were omitted from MS DRGs (Lower Extremity and Humerus Proc Except Hip, Foot, and Femur) 9/6/2016 NHA/SMA 15
16 MS-DRG REPLICATION ISSUES Lymph node biopsy (40.11) Codes 07B74ZX, 07B70ZX, and 07B73ZX were assigned to (Non Extensive O.R. Procedure Unrelated to Principle Diagnosis), but should have been assigned to (Other Resp System O.R. Procedures) FY 2016 FY 2017 RW Change 987 (3.2123) 166 (3.5562) (0.3439) 988 (1.7533) 167 (1.9550) (0.2017) 989 (1.0425) 168 (1.3359) (0.2924) Reposition (81.66) Codes 0PRC0JZ, 0PS43ZZ, 0QS02ZZ, AND 0QS13ZZ were omitted from MS DRGs (Other Musculoskeletal System & Connective Tissue O.R. Procedure) 9/6/2016 NHA/SMA 16
17 MS-DRG REPLICATION ISSUES Excision of Subcutaneous Tissue and Fascia (86.3) 19 codes were omitted from MS DRGs (Other Skin and Subcutaneous Tissue and Breast Procedures) Insertion of Infusion Pump (86.06) 16 codes now added as OR procedures Procedures on Bursa Codes 0M850ZZ, 0M853ZZ, 0M854ZZ, 0M860ZZ, 0M863ZZ, and 0M864ZZ omitted from MS DRGs (Soft Tissue Procedures) 9/6/2016 NHA/SMA 17
18 MS-DRG REPLICATION ISSUES Bladder Neck Repair (57.89) Codes 0TQC0ZZ, 0TQC3ZZ, 0TQC4ZZ, 0TQC7ZZ, 0TQC8ZZ were omitted MDC 11 (Kidney) MS DRGs (Major Bladder Procedures) MDC 13 (Female Reproductive) MS DRGs (Other Female Reproductive System O.R. Procedures) Ungroupable Diagnosis (674.32) Diagnosis code O90.2 will be assigned to MS DRGs Postpartum & Post Abortion Diagnoses) and not MS DRG 999 (Ungroupable) 9/6/2016 NHA/SMA 18
19 MS-DRG REPLICATION ISSUES Drainage of Pleural Cavity (34.06) Codes 0W9940Z, 0W994ZZ, 0W9B40Z, and 0W9B4ZZ were not recognized as OR procedures Codes will be added to MS DRGs (Other Resp System O.R. Procedures) Drainage of Cerebral Ventricle (02.22) 18 codes were not recognized as procedures These codes will be added to MS DRGs (Cranio w/ Major Dev Impl/Acute Complex CNS PDX) Insertion of Infusion Device (86.06) 49 codes for insertion of infusion device into a joint or disc were omitted from the grouper logic 9/6/2016 NHA/SMA 19
20 MEDICARE CODE EDITOR Non covered Procedures Radical Prostatectomy procedures on vas deferens will be removed when principal or secondary diagnosis is without Z30.2 (Encounter for sterilization) Unacceptable Principal Diagnosis Liveborn infant Z38.4 and Z38.7 to be removed High risk pregnancy supervision of elderly primi/multigravida were not removed However, there is an update for category O09 Multiple gestation remove codes regarding multiple gestation and amniotic sac/cords Procedures Not Covered Replication error with Endovascular Mechanical Thrombectomy 03CG3ZZ, 03CG4ZZ, 05CL3ZZ, 05CL4ZZ removed 9/6/2016 NHA/SMA 20
21 MEDICARE CODE EDITOR Newborn definition changed to Perinatal/NB Age=0 to Age <28 days from Age=0 Pediatric Diagnosis (Age 0 17) 12 codes removed from range F90 F98 H26 (infantile or juvenile cataract) added BMI codes removed due to age conflict (2 20) associated with codes R62.50 and R62.59 (Development in childhood) removed Y93.6A (Activity, physical games typically associated with recess) removed Female Codes Z (Hormone replacement) removed Z44.30 Z44.32 (Fitting/adj breast prosthesis) removed Z Z (adj/removal breast implants) removed 9/6/2016 NHA/SMA 21
22 MEDICARE CODE EDITOR Procedure Inconsistent with LOS PCS code 5A1955Z only coded when LOS is >4 consecutive days Title of MS DRG 208 revised to Respiratory System Diagnosis with Vent Support <=96 Hours Maternity Diagnosis Codes The following codes have been added to age conflict with maternity diagnosis: C58 (Malignancy of placenta), D39.2 (Neoplasm of uncertain behavior of placenta), and F53 (Puerperal psychosis) Manifestation Codes Not Allowed as PDx All diagnoses from subcategory M02.8 (Other reactive arthropathies) have been added to this edit 9/6/2016 NHA/SMA 22
23 MEDICARE CODE EDITOR Removal of Questionable Admissions T81.81XA (Complication of inhalation therapy) T88.4XXA (Failed or difficult intubation) T88.7XXA (Unspecified drug adverse effect) T88.8XXA (Other specified complications of medical care) T88.9XXA (Complication of medical/surgical care, unspecified) 9/6/2016 NHA/SMA 23
24 ICD-10 CONVERSION Ending code freeze, resuming annual updates to ICD 10 Coding sets 1900 new ICD 10 CM diagnosis and nearly 3650 new ICD 10 PCS procedure codes are expected to be implemented October 1, More information available in the appendix. 9/6/2016 NHA/SMA 24
25 ICD-10 CHANGES Assign the following ICD 10 codes to different MS DRGs ICD 10 PCS code clusters 02RK0JZ and 02RL0JZ to MS DRG (Heart Transplant or Implant of Heart Assist System) ICD 10 CM codes T85.610A, T85.620A, T85.630A, T85.690A to MS DRGs (Other Disorders of Nervous System) ICD 10 CM code R22.2 to MS DRGs under MDC 9 ICD 10 PCS codes 0JH602Z, 0JH632Z, 0JWT02Z, and 0JWT32Z to MS DRGs (Periph/Cranial Nerve & Other Nerv System Procedures), (Cardiac Pacemaker Revision Except Device Replacement), (Other Skin, Subcut Tiss & Breast Procedure), (, ICD 10 PCS codes for endovascular thrombectomy of lower limbs to MS DRGs ICD 9 CM code and ICD 10 PCS code 02UG3JZ from MS DRGs to MS DRGs /6/2016 NHA/SMA 25
26 ICD-10 CHANGES Assign the following ICD 10 codes to different MS DRGs Code ICD 10 PSC code clusters 02RK0JZ and 02RL0JZ New MS DRG MS DRG (Heart Transplant or Implant of Heart Assist System) ICD 10 CM codes T85.610A, T85.620A, MS DRGs (Other Disorders of Nervous System) T85.630A, T85.690A ICD 10 CM code R22.2 MS DRGs (Minor Skin Disorders) under MDC 9 ICD 10 PCS codes 0JH602Z, 0JH632Z, 0JWT02Z, and 0JWT32Z ICD 10 PCS codes for endovascular thrombectomy of lower limbs ICD 9 CM code and ICD 10 PCS code 02UG3JZ MS DRGs (Periph/Cranial Nerve & Other Nerv System Procedures), (Cardiac Pacemaker Revision Except Device Replacement), (Other Skin, Subcut Tiss & Breast Procedure), (Other O.R. Procedures for Injuries), (Other O.R. Procedures for Multiple Significant Trauma) MS DRGs (Other Major Cardiovascular Procedures) MS DRGs (Other Cardiothoracic procedures) from MS DRGs (Percutaneous Intracardiac Procedures) 9/6/2016 NHA/SMA 26
27 ICD-10 CHANGES Simplify ICD 10 MS DRG/Grouper logic Assignment to MS DRG (Permanent Cardiac Pacemaker Implant): ICD 10 PCS procedure codes involving pacemaker devices reported with certain ICD 10 PCS procedure codes involving pacemaker leads Assignment to MS DRG (Cardiac Pacemaker Device Replacement): ICD 10 PCS procedure codes involving pacemaker decide insertions that are reported without any other pacemaker device procedure code Assignment to MS DRG (Cardiac Pacemaker Revision Except Device Replacement): ICD 10 PCS procedure codes involving pacemaker lead insertion, removal, or revisions and insertion of hemodynamic devices without any other device insertion codes 9/6/2016 NHA/SMA 27
28 NEW HEALTH ANALYTICS WARREN BRENNAN, MANAGING PARTNER PERFORMANCE INSIGHT 9/6/2016 NHA/SMA 28
29 APPENDIX 9/6/2016 NHA/SMA 29
30 CMS FY 2017 TABLES 6A 6M.1 LIST OF NEW DIAGNOSIS AND PROCEDURE CODES, INVALID CODES, CC EXCLUSIONS, MCC AND CC Click here for document 9/6/2016 NHA/SMA 30
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