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ASA NEWSLETTER
 
 
April 2004
Volume 68
Number 4

Practice Management

Locum Tenens Anesthesiologists: New Medicare Payment Policy

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



Until now an anesthesiology group using a locum tenens or other independent contractor physician has not been able to bill Medicare directly for the services of that physician. Typically the locum tenens has submitted claims in his or her own name, and the Medicare remittances have gone into a “lockbox” bank account from which the bank automatically sweeps funds into an account maintained by the group. Practices can now bill for the locum tenens’ services and receive payment without resorting to such convoluted arrangements.

The need for lockbox devices or sweep accounts reflected the previous text of the Social Security Act and the strictures of the Medicare Carrier Manual section (3060) on the reassignment of benefits. The November 2003 Medicare Prescription Drug legislation, among many other things, amended the law to allow a hospital, group practice or other “entity” to bill for physician services provided under a contract. The new law calls upon the Secretary of Health and Human Services to define the conditions that such contracts would have to satisfy.

The Centers for Medicare & Medicaid Services (CMS) issued the requisite revision to the Medicare Claims Processing Manual (which has replaced the Carrier Manual) on February 27. Chapter 1, Section 30.2.7 now states that:

A carrier may make payment to an entity (i.e., a person, group, or facility) enrolled in the Medicare program that submits a claim for services provided by a physician or other person under a contractual arrangement with that entity … The contractual arrangement between the entity and the physician or other person should include the following program integrity safeguards:

1. Joint and several liability is shared between the entity submitting the claim and the person actually furnishing the service for any Medicare overpayment relating to such claim.

2. The person furnishing the service has unrestricted access to claims submitted by the entity for the services provided by that person.

“Program integrity” is CMS-speak for prevention of fraud and abuse. The joint and several liability clauses that locum tenens contracts should include make both the anesthesiology group and the contracted physician responsible for not overbilling Medicare. This principle does not appear unreasonable. The unrestricted access clause is necessary to hold the contracted physician accountable for the claims submitted in his or her name.

The CMS language says contracts “should include” rather than “must include” the two clauses. Although there is no absolute requirement, it would be prudent for anesthesiology practices to add the clauses to existing contracts, possibly through simple addenda.

An independent contractor anesthesiologist who is concerned about whether the “entity” is enhancing his or her claims might additionally consider an indemnification provision in the written agreement. Likewise a group may be able to protect itself against creative reporting by an independent contractor through an indemnification agreement.

Groups have long been able to submit claims to Medicare for the services of independent contractor nurse anesthetists. The Social Security Act explicitly permits Medicare to pay the group, hospital or other entity for the services of a contracted nurse anesthetist.


Propofol Use Restricted to Anesthesia Professionals

The American Association for Accreditation of Ambulatory Surgery Facilities (AAAASF) has changed its standards and, as of March 1, requires that only anesthesiologists or nurse anesthetists administer propofol. This follows AAAASF’s evaluation of reports of several patient deaths that occurred in facilities “without adequate resuscitation equipment and/or personnel airway management training.”

The AAAASF <www.aaaasf.org> now accredits approximately 1,100 facilities. Its Board of Directors includes Jeffrey Apfelbaum, M.D., chair of ASA’s Committee on Quality Management and Departmental Administration.


Medicare Will Delay Payments on Non HIPAA-Compliant Claims after July 1

CMS has informed the physician community, through the American Medical Association (AMA), that beginning July 1, Medicare carriers will not process electronic claims that do not comply with the Health Insurance Portability and Accountability Act (HIPAA) until the 27th day after receipt. Compliant claims will continue to be processed within 14 days. The two-week penalty is designed to encourage providers to make sure that their claims are in the correct HIPAA format.

What if the carrier itself is responsible for an anesthesiologist’s inability to file a the HIPAA-compliant claim? CMS has created a complaint mechanism known as the Administrative Simplification Enforcement Tool (ASET) on its Web site <htct.hhs.gov/> or <www.cms.hhs.gov/hipaa/hipaa2/enforcement/default.asp#complaint>.

This is how ASET works:

Each ASET user must register with the Office of HIPAA Standards (OHS) and create a user identification name and password. The user must have a valid e-mail account to create a user I.D. This user name and password will be used for ongoing access to ASET. Once registration is completed, the user can enter ASET to file a complaint. To file a complaint, the user must provide information regarding the complainant, the specific transaction and the party that the complaint is being filed against.

Once all the information is entered, the system processes the complaint and conducts any necessary testing on data files that have been uploaded, and the complaint is referred to OHS for analysis. In some instances, the complainant may be asked to submit their complaint and supporting documentation by mail.

ASET is available not just to complain about Medicare carriers. You may use it to complain about any of your “trading partners,” including private payers and claims clearinghouses.

AMA also has posted a complaint mechanism, “Physicians Click and Complain,” on its Web site <www.ama-assn.org>. AMA aggregates the information and forwards summaries with physician names and other identifying data removed. This process is very similar to the online Health Plan Complaint Form (HPCF) for physicians to register complaints about the unfair business practices they encounter with health plans and third-party payers (e.g., inappropriate “bundling” of services). ASA is collaborating with AMA in collecting general payment hassle information, and the HPCF is available on the “Members Only” section of the ASA Web site as well as under the AMA’s “Click and Complain” icon.


Locked Anesthesia Carts: ASA Leaders Pay a Visit to CMS

On February 17, ASA President-Elect Eugene P. Sinclair, M.D., First Vice-President Orin F. Guidry, M.D., and Jerry A. Cohen, M.D., Professional Standards Section Chair and ASA Representative to the Joint Committee on Accreditation of Healthcare Organizations (JCAHO) Hospital Professional and Technical Advisory Committee, and Karin Bierstein, J.D., met with officials of the Centers for Medicare & Medicaid Services (CMS) to discuss medication security and the issue of locked anesthesia carts.

Some JCAHO and state health department surveyers continue to interpret the section of the federal regulation governing pharmacy services in hospitals that states “All drugs and biologicals must be kept in a locked storage area” to mean that anesthesia carts must be locked unless they are in active use. This draconian view would mean that before anesthesiologists can transfer patients emerging from anesthesia to the gurney and to the recovery unit, they must remove all syringes and vials from the tops of the carts and make sure that all medications are locked up. The only exception would occur in those lavishly staffed surgical suites that can assign a nurse or a technician to stay in the operating room monitoring the unlocked cart when the anesthesia personnel leave with the patient.

The CMS officials were sensitive to the patient safety implications raised by this interpretation. They also were receptive to the ASA “Position Statement on Security of Medications in the Operating Room” and to our representatives’ descriptions of the already high levels of security in busy surgical suites to which only authorized persons have access.

We are optimistic that the Agency will issue new “Interpretive Guidelines” for surveyors that will clarify appropriately the circumstances and times when anesthesia carts must indeed be locked. The ASA Washington Office has been told that the new guidelines may be published on the CMS Web site <cms.hhs.gov> as early as May.

In the meantime, hospitals receiving a citation for having unlocked carts in a secure operating room can request a reconsideration from the CMS regional office. Contact information is available through <mail@ASAwash.org>.



Source Material:

Revision 111 to the Medicare Claims Processing Manual, Change Request 3083, 2/27/04 <www.cms.hhs.gov/manuals/pm_trans/R111CP.pdf>.



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