Home >Newsletters >March 2001
 
ASA NEWSLETTER
 
 
March 2001
Volume 65
Number 3
 
PRACTICE MANAGMENT

Labor Epidurals and Billing Methods

Karin Bierstein,
Assistant Director of Governmental Affairs (Regulatory)



In May 1997, members of the Society for Obstetric Anesthesia and Perinatology (SOAP) responded to a survey regarding methods of billing for labor epidurals. The results, reported in the November 1997 NEWSLETTER, showed great variety. Half of the respondents reported that they used multiple methods, depending on the payer. Billing actual time subject to a cap was the most common method.

Following review of the SOAP results, the ASA Committee on Economics added a statement on obstetric anesthesia to the Relative Value Guide (RVG) that noted: Unlike operative anesthesia services, there is no single, widely accepted method of accounting for time for neuraxial labor analgesia.

Professional charges and reimbursement policies should reasonably reflect the intensity and time involved in performing and monitoring any neuraxial labor analgesic.

Methods to determine professional charges consistent with these principles include:

  1. Basic units plus patient contact time (insertion, management of adverse events, delivery, removal) plus one unit hourly;
  2. Basic units plus time units (insertion through delivery), subject to a reasonable cap;
  3. Single fee;
  4. Incremental fees (e.g., 0 < 2 hrs, 2-6 hrs, > 6 hrs).

There does indeed continue to be considerable variation, according to another obstetrics anesthesia survey conducted by the Anesthesia Answer Book (AAB) (United Communications Group, 11300 Rockville Pike, Suite 1100, Rockville, MD 20852-3030, telephone 877-397-1496) last year. The following percentages of respondents to the AAB survey used each of the billing methods listed:

44% Base units plus time (insertion through delivery), subject to a reasonable cap

19% Base units plus patient contact time (insertion, management of adverse events, delivery and removal) plus one unit hourly

16% Flat fee

11% Incremental fees

6% Base units plus face time only.

6% Total time from insertion through delivery

Billing for total time with a cap negotiated or self-imposed is clearly still the dominant method. Flat fees are no more common than they were in 1997. Twice as many SOAP respondents reported billing for total time from insertion through delivery, i.e., without a cap, but the apparent decrease may reflect very small samples rather than an actual change.

The AAB survey also asked for the Current Procedural Terminology (CPT) codes used to bill labor epidurals. Seventy-seven percent of the respondents cited 00857 (Neuraxial analgesia/anesthesia for labor ending in a cesarean section) and 00955 (Neuraxial analgesia/anesthesia for labor ending in a vaginal delivery). Thirty percent used the general continuous epidural code 62319; 23 percent reported the surgical obstetric codes with the modifier 7, which denotes type of service: anesthesia. Nineteen percent of the returned surveys indicated that Medicaid required the use of its own labor and delivery codes, and 9 percent reported billing for other codes.

One wonders at the cost of programming so many variations on both code selection and accounting for time.

On a related subject, there continues to be a lot of confusion about the appropriateness of using the emergency modifier (code 99140, with 2 base units) in conjunction with anesthesia for labor and delivery. The RVG defines emergency as a situation in which delay in treating the patient would lead to a significant increase in the threat to life or body part. A vaginal delivery or a scheduled cesarean section would likely not constitute such an emergency. Neither would the fact that the patient goes into labor at night or on a weekend. (Note that the definition also doesn’t mention full stomach conditions, though patient conditions qualifying as emergencies are most often the clinical justification for administering anesthesia under such circumstances. In obstetrical anesthesia, however, this is less often the case, according to Alexander A. Hannenberg, M.D., of the Committee on Economics.)

When asked about the use of the emergency code for an after-hours appendectomy, L. Charles Novak, M.D., Chair of the Committee, once advised by e-mail that a practical way to analyze the applicability of the modifier was to ask the following question: Does the surgeon drop everything else he or she is doing to get to the operating room to get the surgery done? That happens when there is a bad open fracture, and leaking or ruptured AAA, etc.

Hip Joint Procedures: Correction and Explanation

In the January NEWSLETTER, page 21, the ASA RVG base units for the two hip joint CPT codes that were revised for 2001 were inadvertently transposed. The correct ASA RVG units are as follows:

01214 Anesthesia for open procedures involving hip joint; total hip replacement: 8

01215 revision of hip arthroplasty: 10

Many readers have questioned the difference between the ASA base units and the Health Care Financing Administration (HCFA) (i.e., Medicare) base units for code 1214; HCFA allows 10 units rather than eight. The HCFA value appears in the list of 2001 anesthesia codes and their associated base units received electronically by the ASA Washington Office, by the American Medical Association and presumably by the Medicare carriers.

Accordingly, Medicare will be paying for 10 base units for both codes unless HCFA has amended its file since sending us our copy. Any private payer that uses the Medicare codes and base units would allow 10 units as long as Medicare does. Much more commonly, private payers follow the RVG itself, and since our own valuation is still eight base units, those payers would allow eight base units.

Upcoming Practice Management Conferences

1. The sixth annual ASA Conference on Practice Management took place in La Jolla, California, on February 2-4, 2001. Nearly 300 attended, and an impressive proportion stayed until the very end. Topics included Pain Management Strategies for a Profitable Pain Practice, Office-Based Anesthesia, Continuous Quality Improvement and Internal Benchmarking, Investing in Ambulatory Surgery Centers and many others suggested by ASA members' questions. The compendium of monographs is available for $40 from publications@ASAhq.org.

2. The seventh annual Conference on Practice Management is scheduled for the first weekend in February 2002, in Phoenix, Arizona. Program development is now under way, and we welcome your suggestions for subjects and speakers.

3. On May 20-23, 2001, the Anesthesia Administration Assembly (AAA) of the Medical Group Management Association (MGMA) will be holding its annual conference in Scottsdale, Arizona. Breakout sessions will include such topics as office-based anesthesia, the results of the survey of hospital contracting first presented in La Jolla, Putting the Web to Work in Physician Practices, governance and provider supply and demand. The conference will primarily educate your administrative staff, but note that there also will be a physicians' networking breakfast. For a copy of the program brochure and registration information, contact MGMA at (888) 608-5602.

Compliance Corner

From questions sent to members of the Committee on Practice Management:

Q.
Can an anesthesiologist who is medically directing two or more cases give a lunch break to one of the nurse anesthetists?

A.
No. The anesthesiologist who allows the nurse anesthetist to leave the operating room would then be personally performing that anesthesia service. If the anesthesiologist were then to leave the operating room (patient #1) to monitor one of the medically directed cases (#2 and #3, hypothetically), no one would be able to bill for the case in which there was no anesthesia provider present. More importantly, the anesthesiologist would be abandoning patient #1. Furthermore, personally performing anesthesia for patient #1 would not be an allowable activity in so far as the medical direction of cases #2 and #3 is concerned.



return to top


 


FEATURES

Ethics & Patient Care: Striking a Balance

ARTICLES


DEPARTMENTS


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.

NL Archives

Information for Authors