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July 2003
Volume 67
Number 7

Practice Management


Anesthesia Groups Must Not Jointly Set Hospital Stipends


Karin Bierstein, J.D.
Assistant Director of Governmental Affairs (Regulatory)



Physicians know that they violate the antitrust laws if they enter into agreements on fees they will charge patients or third-party payers. Independent practices also engage in illegal price-fixing if they work together to set the amount of hospital stipends they accept.

The San Diego Union-Tribune reported on May 31 that two local anesthesia groups had settled federal charges that they had unlawfully conspired to fix contract prices for their on-call services at a local hospital. The settlement agreement required the groups to pledge that they would refrain from similar activity, but it did not include either a fine or any payment to the hospital. The hospital had not accepted the groups’ demands at the time that the Federal Trade Commission (FTC) began its investigation.

Like many other anesthesia practices, the two San Diego groups were finding it very difficult to recruit doctors, particularly in an environment dominated by managed care contract prices. Providing trauma coverage was prohibitive without a hospital stipend: there might be no patients at all or else too many uninsured trauma patients. The hospital had asked the groups to determine how much of a stipend was necessary. The result was discussion about the amount among the two “competitors” documented by unambiguous e-mail messages among other means.

The FTC investigation took place, according to the attorney for the larger of the two groups, Anesthesia Service Medical Group (ASMG), after local managed care organizations had accused ASMG of charging monopolistic fees. The monopoly charges did not bear fruit, obviously, reminding us that simply being a dominant player in a given “market” is not illegal unless one obtains monopolistic power through improper means.



Pain Medicine: New Procedures on the ASC Payment List

While physicians may bill Medicare for their professional services without regard to the setting in which they are provided, ambulatory surgical centers (ASCs) are only paid a facility fee if the procedure is on the approved list. Without a facility fee to cover overhead costs, ASCs may prevent anesthesiologists from performing a given procedure. Eight years after the Centers for Medicare & Medicaid Services (CMS) last published the ASC list, the agency issued an update in the Federal Register on March 28, 2003. The long-awaited new list contains 288 code additions and 140 deletions. These changes, which on balance are very favorable to pain medicine, took effect on July 1.

Of particular interest is the addition to the ASC list of certain sacroiliac (SI) joint injection procedures. If provided for analgesia in connection with arthrography, the SI joint injection generates a $333 facility fee, but if the injected substance is simply the dye for the arthrography, there is no payment to the ASC. To accomplish this distinction, CMS added “G” code G0260 to the list, leaving off G0259 (injection for arthrography, deemed to cost less than $333). The Current Procedural Terminology (CPT™) code for the SI joint injection, 27096, which covers both variations, is not on the list.

Also added were 62281 (epidural injection of neurolytic, cervical/thoracic, $333), 62287 (percutaneous diskectomy, $1,339) and 62355 (removal of spinal catheter, $446).

Some readers may recall that in 1998 the proposed ASC rule that was finalized in March of this year would have deleted a large number of nerve blocks and neurolytics from the list. Lobbying by ASA and others persuaded CMS to retain the following codes:

All of the procedures in the table will continue to be payable to the ASC. The 2003 amount is $333 for all codes except 64630 (pudendal nerve) and 64680 (celiac plexus), for which the payment is $446.

ASA had worked with the Federated Ambulatory Surgery Association and various specialty societies to urge CMS to publish the list with these updates. The American Society of Interventional Pain Physicians, which came into existence in order to influence the contents of the ASC list, played a significant role.

Source Material:
• Final Rule with Update of Ambulatory Surgical Center List of Covered Procedures, 68 Fed. Reg. 15268 (March 28, 2003) <www.gpo.gov>.



HIPAA Privacy Practice Tip

If there are family members within hearing range when you begin to talk to a patient in the holding area (or anywhere), tell the patient that you are going to discuss the services that you are about to provide and ask whether the patient wishes to talk privately.

This tip resulted from a call to the Washington Office from an ASA member whose hospital had received a Health Insurance Portability and Accountability Act (HIPAA) complaint about his conduct. The anesthesiologist had mentioned the two surgical procedures about to be performed in his preoperative discussion with the middle-aged patient. It turned out that the patient did not mind his daughter’s hearing about his transurethral resection of the prostate, but he considered the disclosure that he was also being circumcised a HIPAA violation.

One can imagine similar confidentiality issues arising when a cosmetic procedure is paired with another elective surgery (e.g., abdominoplasty with a hysterectomy; septorhinoplasty) or if a dilation and curettage is for purposes of terminating a pregnancy.

The ASA member was concerned that the mere question whether the patient would like to have family members excused might disclose too much information. The question would not violate the HIPAA Privacy Rule, but it would be a good idea to preface it with the statement, “I ask this of every patient who isn’t alone.”

Judith Jurin Semo, Esq., suggests, alternatively, that the anesthesiologist preface the discussion by telling the patient and family, “I need to speak with the patient now and ask that you give us a moment of privacy.” With the relative(s) out of earshot, the anesthesiologist can then ask whether the patient would like the relative(s) to hear the discussion. This approach relieves the patient of any responsibility for excluding the family members or for anticipating what the anesthesiologist may disclose.

You might also consider asking whether the patient received the HIPAA Notice of Privacy Practices, especially if you have a practice or hospital Web site from which you could invite the patient who says “no” to download a copy. (If the patient says “no,” consider checking that the hospital is in fact giving out the notice and obtaining written acknowledgements of receipt.)




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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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