The Quill Exchange. S o u t h D a k o t a H e a l t h c a r e F i n a n c i a l M a n a g e m e n t. Inside this issue:

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1 S o u t h D a k o t a H e a l t h c a r e F i n a n c i a l M a n a g e m e n t A s s o c i a t i o n The Quill Exchange April 2013 Health Care Reform 30 Years Ago April 1983 Medicare IP PPS Health care reform is part of all of our lives now, but actually thirty years ago this month Hospital CFO s and Administration began to learn and adjust to a major Medicare payment reform due to the impact of no longer being paid cost for IP Acute services provided to Medicare patients. On April 20 th 1983 President Reagan signed Public Law or The Social Security Amendments of Title VI of the law provided for Medicare payment for hospital inpatient services under a prospective payment system or IP PPS, rather than on a reasonable cost basis. Medicare payments were to be made at a predetermined rate for each discharge. All discharges were classified according to a list of diagnosis related groups or DRGs. The initial list of 470 mutually exclusive and comprehensive case classification categories was developed at Yale University based on records of patients discharged during Each IP discharge was grouped into a specific DRG based on diagnoses represented in the International Classification of Diseases 9 th Revision, Clinical Modification or ICD-9-CM. 30 years later ICD-9 is about to be replace by ICD-10 a major health care reform to coding. Continued on Page 4 Inside this issue: Medicare IP PPS April , 4-5 President s Message, by Renae Tisdall 2 Region 8 Connection, Mike Dewerff 3 SDHFMA 20 Years Ago 6-9 SDHFMA Pictures Platinum Sponsor Spotlight SDHFMA Sponsors 14 Upcoming Meetings 15

2 PRESIDENT S MESSAGE By Renae Tisdall In looking back at my last five years of being involved with the leadership team of SDHFMA, I am so grateful for all the unique experiences that I have had the opportunity to participate in. I know I have said this before, but it seems like yesterday that I started the five year commitment of the officer rotation, and now it is over. What great experiences that I have had in these five years, not to mention the relationships that have been built and the collaborations that have happened within our State and with our Region 8 of HFMA! I am very proud to say that the SD Chapter of HFMA has had another very successful year. I am extremely satisfied to report that we will receive 100 out of 100 points in the Davis Chapter Management Chapter Balance Scorecard Benchmarks. This progress report measures our education hours, membership numbers, member satisfaction, certification, cash position, and on-time reporting. This metric is used by National HFMA as a guide for all chapters to achieve their goals. I am thrilled to be handing off the previous successes of our chapter to the incoming leadership team, under the Presidency of Mr. Geoff Knobloch. He will do a great job, and I wish him and his team, the best of luck. I would like to congratulate the SD Chapter for its continued efforts in education hours and member satisfaction. As of April 10 th, our total education hours totaled 3,620 compared to a goal of 2,401. This will achieve the Charles F. Melcher Gold Award of Excellence for Education. Congratulations to Rita Blasius and her Program Committee for achieving this goal. This is what SD HFMA is about, providing education to our members in a timely pertinent manner. Another great accomplishment to speak of for this year is the member satisfaction survey. Our chapter received the highest member satisfaction, tied with the Nebraska, than any other chapter in the Nation. This is also the highest mark that we have achieved as a chapter ever! Thank you all for completing this survey and giving our chapter such high marks. The SD Chapter met in March in Sioux Falls for our Annual Spring Symposium. The leadership team met on Tuesday and Wednesday to complete most of the strategic plan for the upcoming year. We were fortunate to have a member of the Chapter Advancement Team, Nancy Reiss to help us with thinking outside of the box in planning for the upcoming year. We were also very fortunate to have President and CEO of HFMA, Joe Fifer in attendance to complete the installation of officers for the upcoming year and to provide an update of HFMA at the National level. Upcoming educational opportunities that our chapter is involved in planning include a Region 8 joint meeting. The Region 8 MidAmerica Summer Institute is being planned for August 21 st -23 rd in St. Louis, MO. The seminar registration for this event is out. The SD Chapter Summer Meeting is being planned for June 27 th and 28 th at The Deadwood Lodge. Please mark your calendars and plan to attend this conference and enjoy the beautiful Black Hills of SD! I end my message with the new HFMA National Chair, Steven Rose s theme for the upcoming year, Whatever it Takes. This is truly what we do in healthcare. As healthcare employees from direct patient care, to finance, we do whatever it takes to care for our patients and their families, for someday we will be that patient who needs someone to do Whatever it Takes for us. April 2013 Page 2

3 Region 8 Connection Mike Dewerff, Regional Executive Greetings HFMA Region 8 Friends and Colleagues! They say time flies when you re having fun, and we are already approaching the end of the HFMA chapter year. My journey as Regional Executive began 2 ½ years ago and I have thoroughly enjoyed every day! It was very nice meeting so many of you as I traveled around the region. It has truly been my pleasure to serve all of the HFMA Region 8 chapter members. Your chapter leaders have been working tirelessly to bring you many exceptional educational and networking opportunities, with a number of events yet to come over the next several months. HFMA s fourth live online Virtual Conference event takes place April 11 th, and if free to HFMA members! Non-member registration includes an annual membership to HFMA! The Virtual Conference and the many webinars offered by HFMA at the local, regional and national level are great ways to get continuing education that is relevant, timely and cost effective. You can earn continuing education credits and receive top quality education right from the convenience of your office! I d also like to encourage all the members in Region 8 to consider attending the first-ever Region 8 Mid-America Summer Institute on August 21-23, in St. Louis, Missouri. The leadership group coordinating this meeting is assembling an all-star cast of presenters that promises to provide education opportunities for everyone! Speaking of all-star, the networking event for the Summer Institute includes a St. Louis Cardinals vs. Atlanta Braves baseball game on August 22! Our chapter volunteers are so very important, and are the heart of HFMA. As each chapter develops their strategic plans for the next year, I encourage each of you to volunteer your ideas and your time to help ensure the Region 8 chapters maintain the level of excellence that they are so well known for. You will reap many benefits by getting involved in your chapter, not only professionally, but personally! Be sure to thank your chapter leaders for all that they do. They are the perfect example of this year s HFMA Chair s theme, Leadership Matters. Each chapter has achieved excellent results this year because of the leadership of all the chapter volunteers. They constantly strive to achieve the mission and vision of HFMA, to be the indispensable resource for healthcare finance. I offer my sincerest thank you to all of the Region 8 chapter leaders for their leadership, friendship and support. It s been a great time! With that said, I am beginning to pass the baton to my successors and I wish all the best to Randy Hoffman and Tracy Packingham as they prepare to lead Region 8 to new heights. I assure you, I am leaving you in great hands! Thank you again for the opportunity to serve Region 8, it has been my honor! I welcome your questions and comments. My telephone number is and my address is dewerfmj@ihs.org. Mike Dewerff, CPA, MBA, FHFMA HFMA Region 8 Regional Executive April 2013 Page 3

4 Health Care Reform 30 Years Ago April 1983 Medicare IP PPS The 1983 prospective payment rate did not include capital costs, direct medical education, which continued to be reimbursed at the reasonable cost method. Medicare IP PPS really got its start with the Social Security Amendments of 1972, where the act authorized the Secretary to engage in experiments and demonstration projects in order to determine the advantages and disadvantages of making payments to Medicare providers on a prospective basis. The IP PPS statute provided for a 3 year transition period during which hospitals were paid on a blended rate of their historical cost basis and the new federal rate per discharge. The new IP payment method began for each hospital during their cost reporting period that began after October 1st, IP psych and rehab units within acute care hospitals were exclude from IP PPS and continued to be paid based on TEFRA rates, which were established 1982 with the Tax Equity and Fiscal Responsibility Act. April 2013 Page 4

5 Health Care Reform 30 Years Ago April 1983 Medicare IP PPS April 2013 Page 5

6 SDHFMA 20 Years Ago April 2013 Page 6

7 SDHFMA 20 Years Ago April 2013 Page 7

8 SDHFMA 20 Years Ago April 2013 Page 8

9 SDHFMA 20 Years Ago April 2013 Page 9

10 SDHFMA Spring Meeting Pictures SDHFMA FY13-14 Planning Meeting Joe Fifer, HFMA President and CEO during officer installation Renae presiding over her last SDHFMA Business Meeting April 2013 Page 10

11 SDHFMA Spring Meeting Pictures Thank You FY12-13 SDHFMA Officers and Directors Congratulations FY13-14 SDHFMA Officers and Directors April 2013 Page 11

12 SDHFMA Spring Meeting Pictures Rita presenting SD s Best to HFMA President and CEO Joe Fifer Avera s Dr. Elliott and SDAHO President Dave Hewett New SDHFMA President Geoff thanking Renae for her years of service to the Chapter Congratulations to Anne as she begins her 2 year term in June 2013 on the HFMA National Advisory Council April 2013 Page 12

13 Platinum Sponsor Spotlight Founded in 1917 Eide Bailly is a top 25 CPA firm in the nation. They have 1,200 talented professionals that work in 19 service centers in 9 states for nearly 40,000 clients. For more information visit McGladrey LLP operates under the McGladrey brand as the fifth largest U.S. provider of assurance, tax and consulting services, with nearly 6,500 professionals and associates in more than 70 offices nationwide. McGladrey is a licensed CPA firm. For more information visit Quality Reimbursement Services (QRS) has been reviewing Medicare and Medicaid cost reports for more than twelve years. Our corporate office is located in Arcadia, CA. QRS is dedicated to providing its clients with the most comprehensive interactive reimbursement assistance possible. Our corporate philosophy combines our experience in the Medicare and Medicaid programs with a commitment to keeping up with the latest news and court decisions for the benefit of our clients. For more information visit April 2013 Page 13

14 Thank You 2013 Sponsors Platinum Avera McKennan Hospital Casey Peterson & Assoc Credit Collections Bureau DT-Trak Consulting, Inc. Deloitte Eide Bailly, L.L.P. eprovider Solutions McGladrey NXC Imaging Quality Reimbursement Services Regional Health Rycan Sanford Health Gold Advanced Asset Alliance Dakotacare Kaufman Hall The Midland Group Sanford Health Plan Wellmark BCBS Silver Avera St. Luke's Great Western Bank Bronze 1st National Bank Sioux Falls Accounts Management, Inc Avadyne Health Avera Queen of Peace Avera Sacred Heart Hospital Commerce Bank Howalt McDowell Insurance Qualified Presort Service LLC Rocky Mountain Health Network US Bank Hauge Associates, Inc. April 2013 Page 14

15 Mark Your Calendar Upcoming Events June 27th and 28th Summer Meeting The Lodge at Deadwood September 18th 20th SDAHO Annual Convention Sioux Falls, SD January 23rd and 24th 2014 Winter Meeting Cedar Shores in Chamberlain March 26th 28th 2014 Spring Symposium Sioux Falls, SD The Quill Exchange Published by the SD Chapter Healthcare Financial Management Assoc Brook Place, Suite 1 Sioux Falls, South Dakota Newsletter Chairman: Chairman BJ Dvorak April 2013 Page 15