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ASA NEWSLETTER
 
 
December 1998
Volume 62
Number 12
   
Physician Supervision: Civics 101 for the Compleat Anesthesiologist

Michael Scott, Director
Governmental and Legal Affairs


[The following article is an adaptation of remarks delivered to the Texas Society of Anesthesiologists at its 1998 annual meeting.]

Last December, the federal government fired a shot "heard 'round the anesthesia world" - it formally proposed to eliminate its long-standing Medicare/Medicaid requirement that nurse anesthetists be supervised by a physician. Since then, ASA has dedicated literally thousands of staff hours and hundreds of thousands of resource dollars to opposing this proposal and, as most ASA members know by now, these efforts bore fruit when Congress adopted the omnibus spending bill at the very end of the 105th Congress.

Specifically, the conference report on the FY'99 omnibus bill recommended that the Health Care Financing Administration (HCFA) base its decision whether to retain or eliminate its existing physician supervision rule on scientifically valid outcomes data. The exact language of the report appears on page 2 of this issue of the NEWSLETTER. Although this language is not binding on HCFA, the conference committee action is a very significant step: preliminary results from a recent University of Pennsylvania outcomes study disclose a 28-percent higher death rate when a nurse anesthetist is supervised by a physician other than an anesthesiologist, and there is no current reason to believe the results will be much different in the definitive national study urged by the conference report.

But this happy event really only provides the vehicle for my real text. Rather my topic was chosen by an ASA member from Montana, John M. Mott, M.D., who sent me an e-mail not too long ago expressing confusion as to how the HCFA proposal got off the ground in the first place, and what the relationship was between HCFA and Congress in the possible implementation of the proposed rule. I thought his questions were really legitimate; he characterized them as calling for a "civics lesson," so I decided to put my response down on paper. What follows, in the context of HCFA's proposed rule on physician supervision, is "Civics 101 for the Compleat Anesthesiologist."

A System of Checks and Balances

As you all know, the founding fathers created a system of government based on a written constitution, under which the federal government was given certain defined powers, with all other powers reserved to the states. Federal powers were allocated to the three branches of government: the legislative (the Senate and the House of Representatives), the executive (the President and the various executive departments such as Health and Human Services) and the judicial (the Supreme Court and the various appellate and district courts). Each branch enjoys the power to restrain the other two under a system that John Adams originally styled as a system of "checks and balances."

Thus, except for very limited powers granted by the U.S. Constitution, such as the power to command the armed forces, the President cannot act except pursuant to legislation adopted by Congress. It is the job of the President and the other 1.9 million members of the executive branch to carry out the laws passed by Congress. All major executive branch appointees, such as Health and Human Services (HHS) Secretary Donna Shalala and HCFA Administrator Nancy-Ann Min DeParle, must also be approved by the Senate. (It was this requirement that proved the undoing of former Texas Senator John Tower a few years ago and impeded the appointment of a new Food and Drug Administration Administrator until the very last day of the 105th Congress.) The President, on the other hand, is given the power to veto legislation passed by the Congress, subject always to Congress' reciprocal power to override a veto by a two-thirds vote of both houses.

Federal judges constituting the judicial branch enjoy lifetime appointments, assuring their insulation from the political process, but they serve only on nomination by the President and confirmation by the Senate. The sitting judiciary, on the other hand, enjoys the power to determine whether acts of the executive and the legislature are consistent with the terms of the constitution, and perhaps more important for our purposes here, whether regulations and other actions of the executive branch enjoy the necessary basis in legislation passed by Congress, both procedurally and substantively.

Let me pause over this last check, or division of power, for just a minute. Federal regulations are valid only if they 1) have been properly adopted procedurally, and 2) are substantively based in authority granted to the agency by Congress. On the former point, there is a federal law called the Administrative Procedures Act which, in general, requires that most federal agency rules and regulations must initially be published in proposed form, be available for public comment for a reasonable period and be published in final form only after the agency has considered that public comment. Publication of notice of proposed and final rules is made in the Federal Register, which arrives in our office every weekday. Final regulations, once published in the Federal Register, are added to the multivolume Code of Federal Regulations, in which all existing rules can be found, organized by subject area.

HCFA Proposes to Eliminate Physician Supervision

When a proposed rule is inserted in the Federal Register, the agency in question must always publish in the rule a description of the legislative authority under which the agency purports to be acting. Thus, in the case of the physician supervision proposal, HCFA - an executive subagency of the Department of Health and Human Services - last year officially published its proposed rule in the December 19 issue of the Federal Register. In the preamble to the proposed rule, HCFA noted that under Section 1861(e) of that part of the Social Security Act dealing with the Medicare program, a hospital participating in the program must meet those requirements that the HHS Secretary "deems necessary in the interest of the health and safety of the hospital's patients."

Now the courts have made clear that this kind of generalized, statutory authority does not give carte blanche to the agency. In general, although the agency is given wide discretion, there must still be a reasonable connection between the action of the agency and the extent of the legislative grant of authority. Bearing this in mind, it would be surprising, for example, if the courts would sustain a regulatory mandate that every Medicare-approved hospital display a pink flamingo statuette at its emergency entrance. Yet most people would agree that a proposed regulation dealing with those qualified to deliver surgical anesthesia - and under what supervision, if any - fairly comes under HCFA's "health and safety" statutory mandate.

Where Did It All Begin?

But the December 19 proposed rule on physician supervision did not spring full-blown from the brow of Zeus. The fact is, HCFA first issued so-called hospital conditions of participation regulations under the "health and safety" statutory mandate back in 1966, within one year after adoption of the Medicare statute itself. Curiously, the first set of anesthesia requirements contemplated that anesthesia would be provided either by an anesthesiologist or other physician, or by a nurse anesthetist under supervision of the surgeon; the concept of anesthesiologist supervision of the nurse anesthetist was not referred to in these earlier requirements. Again, however, it is important to note that these original regulations and the current anesthesia regulations adopted in 1986 were adopted pursuant to authority granted HCFA by the 1965 Medicare amendments to the Social Security Act - the same authority now being quoted by HCFA as the basis for its proposed 1997 rule.

What moved HCFA, Dr. Mott asked me, to offer this new proposed rule? Did the agency do it on its own, or did Congress give it some impetus? The answer is that HCFA proposed the new rule on its own motion, and Congress had nothing to do with it, except for having given HCFA the original "health and safety" mandate back in 1965. Rather, HCFA first noted about six years ago that private hospital accrediting bodies had adopted a new approach to the accrediting process, emphasizing focus on patient outcomes rather than maintaining requirements about the way in which the hospital was to perform its responsibilities. In early 1994, an internal HCFA task force was appointed to consider whether HCFA should emulate this approach. From the very outset, we have known that the anesthesia conditions of participation were among those under consideration for change.

It does not take a genius to figure out who or what moved HCFA to consider the elimination of the physician supervision requirement. Since the early 1980s, the American Association of Nurse Anesthetists (AANA) had been lobbying HCFA, and subsequently Congress, to eliminate the physician supervision requirement. AANA struck out badly in 1992 when HCFA publicly rejected the change on safety grounds, but the issue remained alive within the task force. It is safe to assume that AANA lobbied the task force heavily over the years leading up to 1997. Perhaps due to its frustration with the slowness of the task force project, however, AANA also began in mid-1995 to try to bypass the agency and seek legislation from Congress mandating elimination of the physician supervision requirement.

Although the AANA's efforts with Congress were unavailing, principally as a result of ASA opposition, there is still a valuable civics sublesson to be learned here. Because all agencies of the executive branch derive their power from legislation adopted by Congress, there is always the option, if you do not like an agency's regulation, to try to persuade Congress to change the agency's authority or otherwise override agency action. This is, in general, very difficult for at least three reasons: 1) getting Congress to adopt legislation is always a huge and complex project, even for Presidents; 2) it is always easier to block legislation than to gain its passage, no matter who you are; and 3) Congress is always reluctant to "micro-manage" the affairs of an executive agency (or perhaps I should say almost always reluctant, because in Washington, one person's micro-management is another person's vindication of principle).

Now let's be fair: What ASA has been trying to do in 1998 is exactly what AANA was trying to do before 1998. Dissatisfied with agency action (in this case, the December 19 proposed rule), we have fought the physician supervision battle on two fronts: first, with HCFA itself as part of the formal regulatory process, and second, in the 105th Congress, as part of the legislative process.

Battle on the Regulatory Front

Let's talk about HCFA first. As noted previously, the Administrative Procedures Act requires an agency to publish its proposed regulations in the Federal Register for public comment. ASA not only filed its own extensive comments with HCFA opposing the proposed rule, it also successfully encouraged thousands of ASA members to do so as well, not to mention letters of support from the American Medical Association and a large number of state medical and national specialty society organizations. One joint letter signed by 64 anesthesiologists who had originally trained as nurse anesthetists was widely regarded as one of the most effective communications sent to HCFA during the comment period.

ASA recognized early on, however, that the nurse anesthetists would engage in a similar letter-writing campaign, so it was determined to make sure that the views of the real interested parties, namely the Medicare beneficiaries, were also made known to the agency. This was accomplished, first, by asking a national polling organization to survey Medicare beneficiaries and ask how they felt about the proposal to eliminate physician supervision (81 percent were opposed), and second, by retaining the services of a large grassroots solicitation organization, to procure letters to HCFA from seniors and seniors' organizations as well as a diversity of community and religious organizations concerned with the welfare of seniors and Medicaid beneficiaries.

Battle on the Congressional Front

ASA and AANA also undertook major efforts in Congress to persuade individual members of the House and Senate to write HCFA in support of their respective positions. For the most part, those supporting AANA tended to come from the traditional liberal wing of the Democratic party, together with a few conservative Republicans - resurrecting the "states' rights" argument of John C. Calhoun - who believed that the federal government should not be involved with scope of practice issues.

Supporters of the Faircloth-Weldon bill, together with those members writing HCFA to question the scientific basis for the proposed rule, tended to come from, but not exclusively, the middle-of-the-road Republican and conservative Democratic ranks, and included a number of members of the GOP leadership in both houses. Technically, these congressional letters have no special status in the rule-making process, but conventional wisdom says that an outpouring of congressional sentiment cannot help but influence the regulatory result.

ASA officers also met face-to-face with the HCFA Deputy Administrator and several ranking HCFA officials to underscore the reasons for ASA's opposition and to draw HCFA's attention to the preliminary results of the University of Pennsylvania study that were just beginning to emerge. Eventually, the principal authors of the study themselves briefed those HCFA's officials directly responsible for the proposed rule and HCFA's top scientific research personnel. Here's another subcivics lesson: although many agencies adhere to a policy of no contact with private interests during rule-making, HCFA tends to encourage those contacts in many instances. AANA, of course, was as aware of this as we were and made its own contacts.

Our HCFA efforts notwithstanding, the majority of our attention since the first of the year has been on Congress. Before trying to explain that exercise to you, let's open our civics textbook to the chapter titled "Congress." As you already know, Congress is a bicameral legislative body, consisting of the Senate and the House of Representatives. There are 100 Senators, two from each state, who serve six-year terms, staggered so that one-third of the Senate seats are up for election every two years but also so that both Senators from a particular state are not up for election in the same year.

There are 435 Representatives, a number that has remained constant since 1912. After each decennial census, the number of Representatives from each state is reallocated so that each legislator represents about the same number of people, currently about 550,000. Thus, California has 52 Representatives, and the seven least populous states, only one. Representatives must stand for election every two years; it is often said they can never stop running.

Each Congress covers two years, divided into two one-year sessions, appropriately called the first session and the second session, both of which convene on January 3. We have just witnessed the close of the second session of the 105th Congress.

Most of the work of the Congress is accomplished through the passage of legislation. With minor exception, both bodies of Congress have the same legislative powers, essentially meaning that both must concur on a piece of legislation before it is sent to the President. Thousands of bills are introduced in each Congress, but only a few hundred ever make it through the legislative process or, indeed, even receive a hearing before a congressional committee. The committee structure really only became formalized in the 1920s and now represents where most of the work of Congress is really done. Every bill that is introduced is referred to the committee that the parliamentarian deems has jurisdiction; some bills cut across jurisdictional boundaries and are jointly referred to two or more committees. Many bills enjoy sponsorship of a multiplicity of members, potentially signaling the importance of the bill to a large number of legislators; identical or almost identical companion bills are often introduced in the Senate and the House at or about the same time.

Supporters of ASA's Position Introduce Bills

As many ASA members know, Senator Lauch Faircloth of North Carolina and Congressman Dave Weldon of Florida last spring introduced companion bills that would have blocked implementation of the proposed HCFA rule eliminating physician supervision of nurse anesthetists. Needless to say, finding sponsors for a piece of new legislation is not a simple task. In this case, it principally resulted from the Senator's long and close political association with a number of North Carolina anesthesiologists, and from Congressman Weldon's deep commitment as a practicing physician to the importance of physician control of the practice of medicine. The Senate bill was referred to the Committee on Finance, and the House bill jointly to the Committees on Commerce and Ways and Means, which are the traditional committees of jurisdiction on Medicare matters.

Once a bill is introduced, the job of the proponents, both inside and outside Congress, is to persuade other legislators to co-sponsor the bill and, if possible, to persuade the leadership of the committees of jurisdiction to hold hearings on the bill. The ultimate objective is to get it voted out of committee and onto the floor of the House or Senate, as the case may be. Once passed by each body, often in differing detail, the bills are taken up by a "conference" of committee leaders from each house, and if the conference is successful, the compromise bill is then referred back to each house for final passage.

It was never our intention, however, to follow this traditional route with either the Faircloth bill in the Senate or the Weldon bill in the House for two simple reasons: first, as a practical matter, there simply was not enough time left in the session for us to have any hope of getting this done; and second, there was no potential legislative vehicle expected to go through those committees to which this narrow, single-purpose proposal could be attached. All, or virtually all, of the work of the 105th Congress on Medicare was completed last year with passage of the Balanced Budget Act of 1997.

A Matter of Appropriations Considered

There was actually a third reason, and you would do well to note this in the margin of your civics textbook. Legislators hate to choose sides between major contending forces, and pressing the Faircloth/Weldon bill to an up-or-down vote would have forced such a choice. Proponents of legislation should thus be prepared, if possible, with an alternate legislative strategy that will accomplish their purpose; that is, in this case, to block the proposed HCFA action. To accomplish this, we decided to turn to the appropriations process. Federal agencies are funded in their activities, first, by action of the committees of jurisdiction, the so-called "authorizing committees," which, in general, set ceilings on the amounts that can be spent by the agencies within their jurisdiction, and then subsequently by the appropriations committees, which specify actual funding levels. There are 13 different appropriations bills that must be approved each year. Taken together, they encompass the full range of federal activity.

Now there is a problem with using the appropriations process to accomplish legislatively substantive objectives. Especially in the Senate, that's a "no-no," and so you have to try to craft legislation in appropriations terms such as "no funds shall be expended by the Secretary for the purpose of implementing regulations eliminating physician supervision of nurse anesthetists under the Medicare program."

Even then, however, you can potentially face rough sledding because opposition almost always will surface in the appropriations process to such a baldly substantive provision. This happened right at the end of the 105th Congress when Senator Don Nickles (R-OK) tried to attach such a provision to the omnibus bill in order to block physician-assisted suicide. Such a hue and cry of opposition arose that he was forced to withdraw his proposal even though he is a member of the GOP leadership team in the Senate.

It happens, however, that Senator Faircloth sits on the Senate appropriations subcommittee, and eventually it was decided to seek relief through this process. It became clear early on that a simple rollback of the proposed HCFA regulations probably would not float, both because of pro-nurse sentiment among some Democratic members of the subcommittee and because of views by some GOP members who, no matter how strongly they favored physician supervision in principle, saw this was a scope of practice issue to be decided at the state, not the federal level.

Hard-Won Language Calls for Study

So, in the end, the subcommittee on September 1, at Senator Faircloth's initiative, reached agreement to urge HCFA to conduct a study along the lines of the Pennsylvania study, prior to considering whether to implement the proposed rule. Two days later, the full Senate Appropriations Committee concurred. That result was viewed as vindication for those supporting the Faircloth-Weldon bill since, if the new study produces results similar to the Pennsylvania preliminary results, HCFA would be hard pressed to put the proposed rule in effect and fertile ground would exist for a renewed congressional fight.

Thus, to answer one of Dr. Mott's original questions: Congress always has the power to change the legislation under which an agency acts in order to assure itself that the agency acts or does not act in a particular way. Regulators are aware of this, so that expressions of congressional sentiment such as contained in the report on the FY'99 spending bill, although not binding on the agency, are not without major significance. In general, though, as noted early on, Congress is loath to micro-manage the work of an agency, and if you are going to persuade it to intervene, you must make a very strong case, preferably in a nonpartisan way.

Speaking of partisanship, this civics lesson would not be complete without referring to the activities of the American Society of Anesthesiologists Political Action Committee (ASAPAC), which will have given $1 million in contributions to federal legislative candidates in this two-year election cycle ending on December 31. There is no question that this level of giving puts a political committee on the radar screens of the congressional campaign committees and individual candidates of both parties. That kind of attention tends to assure the opportunity to be heard, but it by no means is a guarantee to be heeded. In general, the process goes the other way: ASAPAC tends to support those candidates who speak and act in ways that suggest they are friendly to, or at least open-minded about, physician interests. Without question, our work with Congress has been aided by the role of ASAPAC as one of medicine's primary contributors.

Running Out of Time, Efforts Redoubled

In bringing this civics lesson to a close, I need to say just a word about what happened on our way to the fair. This chapter could aptly be described "At the End of a Session, in an Election Year, Anything Goes if You've Got the Votes."

In the ordinary course, we would have expected the Senate Labor-HHS Appropriations bill to have been brought up on the Senate floor for debate and passage, just as would be expected on the House side. Then the leaders of the two committees would get together in conference to work out the differences. The problem was, however, that when Congress returned after the August recess, it had completed work on only one of the 13 FY'99 appropriations bills, and it rapidly became clear that there was not sufficient time left to permit orderly consideration of the bill.

So what happened was that the GOP leadership decided to create a massive spending bill to include eight of the 13 necessary bills, and to cause staff members to work behind closed doors to work out details. This is when the process becomes hairy for those on the outside: the staff members, under tremendous pressure and often working without adequate sleep, tend to become uncommunicative - meaning that the outsiders often do not know what is going on.

As if by magic, however, the Senate provision on an anesthesia outcomes study, in a slightly modified form, surfaced in the draft of the conference committee report about one week before final action on the bill. ASA representatives were given a window of two hours to offer recommended changes, without assurance that they would be accepted or that we would even learn what had been done until the omnibus bill went to the floor of the House. This is pretty normal at the end of the session, and it puts to the test all the work you have done with various legislators and staff members to keep your message before them - to be sure that someone will be looking out for your interest at crucial times. They simply don't teach you about such things in civics books: better training could probably be found on the floor of the New York Stock Exchange during a sell-off.

In any event, the provision relating to an anesthesia outcomes study survived and became part of the report on the final draft of the bill. Briefly, the nurse anesthetists attempted an end-run around the provision by trying to organize a "colloquy" between Senator Arlen Specter (R-PA), chair of the Senate Labor-HHS subcommittee, and two Senators sympathetic to AANA interests. Colloquies are attempts to include points in the statutory history in addition to what is contained in a particular provision adopted by the Senate or House, but because they have not withstood the scrutiny of committee or floor debate, they are of limited value and importance. This colloquy effort failed in the face of opposition by those who had worked out the terms of the original Senate committee language.

And so, there in a nutshell, combining both theory and practice, is the civics lesson for today. What ASA achieved was report language that will find its way into neither the Code of Federal Regulations nor the United States Code, but which, nonetheless, can logically be expected to have a substantial impact on how the federal government ultimately deals with this issue. Without question, there is a new civics lesson to be learned in the 106th Congress, so you may want to sign up for Civics 102, which is given in the spring semester.


Michael Scott has been Director of Governmental and Legal Affairs in the ASA Washington Office since 1993, having previously served many years as ASA legal counsel with Squire, Sanders & Dempsey, Washington, D.C.
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