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ASA NEWSLETTER
 
 
April 2000
Volume 64
Number 4
   
Compliance, Billing and the OIG: Improved Billing or Handcuffs? A Personal Perspective

Paul J. Lipson, M.D.


Background: I have been the Compliance Director for Anesthesia Medical Group for the past two-and-one-half years. Anesthesia Medical Group is comprised of 70 physicians and 120 nurse anesthetists. We use the anesthesia care team model as well as personally provided anesthetics. We have conducted up to four mandatory seminars on billing and compliance in the last two years. I am also the Medicare Advisory Committee representative for the Tennessee Society of Anesthesiologists.

The following is my perspective and the lessons that I have learned about compliance and billing over the last two years.

Update on Medical Fraud and Abuse

We began our compliance activities two-and-one-half years ago with much fear and trepidation. We were concerned that the size of our group would especially make us a target for Office of the Investigator General (OIG) investigative activities. At that time, the language coming from the Health Care Financing Administration (HCFA) and the OIG was ominous and severe. HCFA often spoke of "criminal wrongdoings" and monetary penalties that would be triple the amount of payment to physician groups should criminal wrongdoing be discovered.

More recently, OIG auditors have found that since 1996, fraudulent and erroneous Medicare payments have been reduced by one-half, saving taxpayers $11 billion.1 Recently, HCFA has adopted a softer and gentler tone with respect to health care fraud investigations. Its new Comprehensive Plan for Program Integrity has a more conciliatory tone, with the objective to "pay it right" the first time. HCFA has learned that a partnership with physicians' groups through education and awareness is the prime way to prevent health care fraud and inaccurate billing. In other words, HCFA wants to enlist our help in billing Medicare and other third-party payers accurately and correctly.

I recently attended a lecture by a special agent from the OIG here at the Nashville suboffice.2 This lecture was presented to the quarterly Medicare Advisory Committee. The agent convinced us that their investigations of physician practices sought blatant criminal activities, not billing mistakes. I was told of an example of a psychiatrist who billed Medicare for seeing patients 24 hours a day, 365 days out of a year. This is an example of unscrupulous billing activity that commands their attention.

At present, HCFA requires local carriers to investigate (by audit evaluation of medical records) those procedures that are more frequent than benchmark average national or regional rates. For example, if your practice provides monitored anesthesia care (MAC) more than a nationalized benchmark rate, your practice will have random audit reviews of MAC procedures. Our local carrier, Healthcare Integrity Team, investigates suspected cases of fraud and abuse that may be uncovered by these audits. "All complaints or tips are thoroughly investigated. Simple misunderstandings, billing errors or lack of knowledge in billing procedures are ruled out and corrected. Suspected cases of fraud or abuse are expanded and resolved or referred to the OIG." 3

Role of the Medicare Advisory Committee

Active involvement in the Medicare Advisory Committee cannot be overemphasized. HCFA will frequently direct carrier work groups to institute local medical review policies on various anesthesia items (for example, MAC, epidural steroid injections, anesthesia for ocular and oral procedures). These policies will be introduced in various regions of the country at different times. It is vital that you have access to the introduction of these policies so that you have input before your local carrier institutes the policy. It is also vital that you maintain a good relationship with your carrier medical director (see pages 28­29). Through this relationship, it is possible to improve these local policies, make them user friendly and more actively reflect your practice style. Unfortunately, these local medical review policies receive very little input from our national society. These policies may simply reflect the carrier work group's attitude toward reimbursement for certain procedures.

Anesthesia Billing Ticket and Coding Techniques

When we began compliance activities, it was obvious that the concept of anesthesia start time was confusing and misunderstood by the majority of our anesthesia providers. After reviewing HCFA rules and the Correct Coding Initiative, we began to educate our providers on exactly when anesthesia start time begins. We found that we were often missing legally billable anesthesia time. We also suggest that you examine your process for ICD-9 diagnosis and CPT procedural coding. We feel the best person to accurately code is the person in the operating room who is interacting with the surgeon. Most surgeons have become adept at coding because they realize reimbursement is directly linked to precise coding. As you know, the code books require specific detailed information to which office coders may not have immediate access and would have difficulty obtaining through operative records and progress notes. Inaccurate coding can lead to denial of claims and potential accusations of "upcoding."

Steps to Take to Begin Compliance/Improving Your Billing

Perhaps you have been dragging your feet on getting an anesthesia compliance program started. Consider trying these simple steps:

  1. Obtain the ASA document on "Compliance With Medicare and Other Payor Billing Requirements," published in September 1997.4 This is the best source on the subject that I have found. Especially note the chapter on "Pitfalls on Billing Medicare for Anesthesia Services."
  2. Obtain a copy of the HCFA rules and the Correct Coding Initiative.
  3. Establish a relationship with the Medicare carrier medical director in your region.
  4. Obtain copies of all the local medical review policies that have come out in your region in the last three years and review them.
  5. Begin a thorough scrutiny of your own billing ticket, assuring that people understand how to accurately complete it.
  6. Learn to do your own coding.
Conclusion

Perhaps you can view compliance as a way of applying the same level of care to the patient's bill that you provide for them in the operating room. In addition, you will have the peace of mind that you are in compliance with federal regulatory agencies regarding billing. You will also be sure that you are capturing the maximum amount of reimbursement to which you are legally entitled.


References:

1. "Feds Try New Tack for Stopping Fraud." American Medical News. March 1, 1999.
2. OIG Presentation to Tennessee Medicare Advisory Committee. January 26, 2000.
3. "Fraud and Abuse: Protecting Your Interest." CIGNA Healthcare, Tennessee Carrier Advisory Committee Meeting. January 27, 1999.
4. American Society of Anesthesiologists. Compliance With Medicare and Other Payor Billing Requirements; 1997.

Paul J. Lipson, M.D., is a partner in Anesthesia Medical Group, P.C., Nashville, Tennessee, and is a member of the Tennessee Medicare Advisory Committee, Tennessee Society of Anesthesiologists.



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The views expressed herein are those of the authors and do not necessarily represent or reflect the views, policies or actions of the American Society of Anesthesiologists.

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