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ASA NEWSLETTER
 
 
May 1996
Volume 60
Number 5
 
WASHINGTON REPORT

HCFA Issues Draft Clarifying Instructions for New Teaching Rules Effective July 1

Michael Scott, Director
Goverment and Legal Affairs



In her "Practice Management" column in the April 1996 ASA NEWSLETTER, Karin Bierstein reported on the settlement of a Medicare false claims action against a Pennsylvania hospital and three anesthesiologists on its medical staff. According to news releases regarding the settlement, one of the issues involved in the government's allegations was failure of the anesthesiologists to perform all of the steps required for medical direction reimbursement under Medicare regulations.

Announcement of the settlement should be of particular interest in light of the increasing incidence of claims of Medicare fraud by medically directing anesthesiologists in connection with termination of certified registered nurse anesthetist (CRNA) employment contracts. This is the essence of the qui tam action brought by the Minnesota Association of Nurse Anesthetists against a large number of anesthesiologists with privileges at hospitals in the Minneapolis-St. Paul area, and ASA has recently become aware of a CRNA-inspired fraud investigation of anesthesiologists in eastern Tennessee. Allegations of Medicare fraud were also contained in the recent testimony by the American Association of Nurse Anesthetists to the House Judiciary Committee, mailed to all ASA active and resident members in mid-March.

A major difficulty for anesthesiologists in responding to medical direction fraud allegations is the fact that Medicare's regulations are currently silent as to the type of documentation required in order to establish conformity with the medical direction rules. Except for a lack of specificity in the requirement that the anesthesiologist medical direction requirements are reasonably clear (and since they are based on ASA's own definition of a physician service, ASA members are in a fragile position to argue otherwise). But in light of the reported credo of most federal investigators - "If it is not on the chart, it did not happen" - the lack of specificity in the regulations as to documentation requirements raises a real problem.

A recent development with respect to Medicare's new teaching reimbursement rules may, however, provide the vehicle for solution to the documentation dilemma. Accompanying this article is the text of the "Anesthesia" portion of clarifying instructions for reimbursement of teaching physicians, issued in draft form by the Health Care Financing Administration (HCFA) in March [Table 1]. Of immediate interest to teaching physicians is the fact that HCFA does not require the anesthesiologist to be in the room during "nonkey" portions of the procedure but only to be "immediately available"; in another portion of the instructions, HCFA expressly declines to define "immediate availability" in terms of required physical proximity to the operating room.

To all anesthesiologists medically directing residents or nonphysician providers, however, the most important part of the instructions is the sentence relating to documentation, re-quiring merely that "the medical re-cords must indicate the teaching phy-sician's presence or participation during the key portions" of the procedure. This strongly suggests that no documentation is required for the pre- and postanesthesia visits or for conformity with the "immediate availability" standard for nonkey portions of the procedure. If this is the documentation requirement for the teaching of residents, it should presumably also be so for medical direction of nonphysician providers.

On April 10, ASA representatives met with members of the HCFA staff to discuss both the substantive requirements of the instructions and the necessary documentation. Part of the discussion related to the fact that HCFA had reportedly agreed to revised instruction language that appears to allow surgeons to supervise residents in two overlapping cases, while both the new teaching regulations and the draft instructions limited anesthesiologists to a single procedure with a resident, if full reimbursement were to be made. The ASA representatives argued, just as ASA had argued in its comments on the proposed regulations, that fairness required that the same standard be applied to anesthesiologists as to surgeons. ASA President Norig Ellison, M.D., has requested a meeting with HCFA senior officials to discuss this subject further.

One important substantive point did emerge from the April 10 meeting. Contrary to what was stated in the regulation, HCFA did not intend to require the teaching anesthesiologist to participate directly in the preoperative and postoperative visits, and a correction notice is being issued to delete this requirement from the regulations.

Also noted was the fact that contrary to what was said in the proposed instructions [Table 1], the teaching anesthesiologist's reimbursement per case no longer varies depending upon the number of cases medically directed.

ASA President, Other Anesthesiologists Testify on Anesthesia's Effect on Fetus
On March 21, ASA President Norig Ellison, M.D., testified before a subcommittee of the House Judiciary Committee on the issue of the effect of anesthetics on the fetus in late-term abortions. Also participating in the hearing were David J. Birnbach, M.D., President-Elect of the Society for Obstetric Anesthesia and Perinatology and Professor of Anesthesiology at St. Luke's Roosevelt Medical Center, New York, New York; David H. Chestnut, M.D., Chair of the Department of Anesthesiology, University of Alabama Birmingham Hospital, Birmingham, Alabama; and Jean A. Wright, M.D., Associate Professor, Department of Pediatrics and Anesthesiology, Emory University, Atlanta, Georgia.

Testimony of all the anesthesiology witnesses was consistent, disputing at length the claim that anesthesia given to the mother during a late-term abortion caused neurological demise of the fetus. All of the witnesses expressed concern that widespread dissemination of this false claim by the media has caused many women to question whether to undergo necessary surgery during pregnancy, for fear of injuring the unborn child. Also expressing this concern to the subcommittee was Rep. Tom Coburn, M.D. (R-OK), a family practitioner who has continued to deliver babies in his home state, when possible, since his election to Congress more than one year ago.

The hearing was held in connection with efforts by Congress to prohibit the so-called "dilation and extraction" method of late-term abortion except under very limited circumstances. President Clinton has opposed the legislation unless the list of exceptions is substantially expanded. ASA has taken no position on the legislation but has offered testimony in both the Senate and the House to dispel concerns about the safety of anesthesia for pregnant women.

On March 27, the House approved the Senate's version without expanding the exception grounds, and the bill went to the White House, where it was vetoed, as expected.


House Passes Health Insurance Reform Bill With MSAs, Cap on Noneconomic Damages
On March 28, the House passed a GOP-sponsored bill limiting to 12 months the period in which a new employee can be excluded from the employer's group insurance plan by virtue of a pre-existing condition and prohibiting insurance companies from dropping enrollees except for nonpayment of premiums.

The bill would also require insurers who offer individual health insurance policies to make them available to individuals who have lost their jobs, provided that they have carried job-related health insurance for at least 18 months prior to termination. An additional provision would make it easier for small employers to band together to obtain health insurance on their employees on terms more comparable to those available to large employers.

Controversial provisions of the bill include those allowing individuals to establish medical savings accounts (MSAs) similar to individual retirement accounts and the establishment of new federal standards for malpractice lawsuits in federal and state courts, including a cap of $250,000 for non-economic damages and the same cap for punitive damages. President Clinton has already expressed strong opposition to both of these provisions.

The Senate was scheduled to take up on April 18 a similar but currently less ambitious health insurance reform bill (S. 1028) sponsored by Sens. Nancy Kassebaum (R-KS) and Edward M. Kennedy (D-MA), favorably reported several months ago by the Committee on Labor and Human Resources. In the Senate, a major issue will be the extent to which amendments can be limited by the leadership; if the Senate bill becomes a "Christmas tree," this development dooms the possibility that a conference bill can eventually pass both houses containing terms that are acceptable to the White House. There are already indications that the House leadership will not fall on its collective sword in the face of a veto threat over the MSA and liability reform with presidential politics as to make any such predictions rankly speculative.

The good news, however, is that both the Republicans and Democrats seem to agree on the need to accomplish insurance portability reforms, and the President has already endorsed the concept. Perhaps after countless bills, innumerable hearings and hundreds of millions of dollars in public relations efforts on all sides, Congress and the President can make a modest start on incremental reform before the conventions begin.

Lao Tzu said, "A journey of a thousand miles must begin with a single step." But then again, he never had to worry about presidential politics.

 


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