The National Medicare RAC Summit “The Basics of Preparing for and Responding to RAC Demands” March 5, 2009 Presenter: Kathy Skrzypczak Assistant Vice President,

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Presentation transcript:

The National Medicare RAC Summit “The Basics of Preparing for and Responding to RAC Demands” March 5, 2009 Presenter: Kathy Skrzypczak Assistant Vice President, Corporate Services Martin Memorial Health System

Presentation Outline n Health System Background n Demonstration Project Experience n Managing Risk - The Team n Considerations for Best Practices

Martin Memorial Health System n Integrated Health System, located on the Central East Coast, Florida n Operations in 2 counties n 3,300 Associates n Two Inpatient Facilities, 344 licensed beds n 325 Medical Staff Members n Employ 80 physicians n 5 Outpatient Diagnostic Testing Centers

Martin Memorial Health System n Health System Net Revenues = $342M n Medical Center Net Revenues = $302M n 17,500 Inpatient Admissions n 2,000 Observation Admissions n Medicare Payer Mix = 68% n 50% Net Rev. Outpatient Business Lines

Demonstration Project Experience n 2,570 Cases Reviewed, (2,447 Complex Reviews) n 4.5% Automated Reviews n Service Dates from F/Y Reviewed 17% of F/Y 2003 Discharges Reviewed 9% of F/Y 2004 Discharges n Health Data Insights (HDI) Determinations 1,555 No Findings (60.5%) 1,011 Denials/DRG Changes (39.4%) 4 Underpayments (0.1%)

RAC Denials/Changes n Denials/Changes (1,011 claims) n $3.4 Million Take backs 752 Medical Necessity for Inpatient Services (74.4%) 101 DRG Changes (10.0%) 66 Incorrect Discharge Status (6.5%) 57 Outpatient per Unit Billing (5.6%) 35 Other (3.5%)

Overall Appeal Experience n 341 Overturned (55%) n Recouped $1.5 Million To Date n Unknowns ? 13 Pending at 1 st level of appeal 97 Pending at 2 nd level of appeal n Anticipate Demonstration Project Appeals to continue until late 2009

The RAC TEAM – Multi-disciplinary n Asst. VP, Corporate Services n RAC, Coordinator n Director, Case Management/Utilization Review n Utilization Review Project Specialist n Supervisor, Hospital Coding n Director, Corp. Business Services (Registration, Billing) n Finance/Reimbursement Rep. n Director, Health Information Management n Chief Compliance Officer n Clinical Documentation Improvement Specialist

Considerations for Best Practices

1. Centralized Communications 2. Staffing Considerations - Support 3. Medical Records Management 4. Electronic Document Management 5. Claims Tracking Software Solution 6. Utilization Review Process at Admission 7. Access to Utilization Review Documentation 8. Physician Advisors

Centralized Communications n External Communications Incoming Mail Incoming Requests for Medical Record Copies Tracking Response documentation n Internal Contact Point Appeal Status Business Office Claims follow-up Missing Documentation follow-up “Claims Denial Coordinator”

Staffing Considerations - Support Administrative Support - “Claims Denial Coordinator” – (mid- level clerical position) Monitor timeliness of responses to record requests and appeals Monitor appeal outcomes Identify trends in claims requests and denials Coordinate Denial Management Team meeting Assist with drafting appeal communications Follow up with outside organizations for claim resolutions Potential Increased Resources – Record Requests – Release of Information Reviewing RAC Responses and Drafting Appeals

Medical Records Management Additional Information: Coding Department – Retrospective Queries are part of the permanent medical record Utilization Review Documentation Physician Advisor Worksheets are filed in the Medical Record and copied as part of the Contractor Record Request n Consider a pr ing “chart review” process n Think about the future Retain electronic images of documents sent in response to a record request Avoid accessing paper documentation multiple times

Electronic Document Management n Ability for multiple individuals to electronically access copies of: Mail tracking slips Contractor responses Appeal letters Appeal responses n Possible options: Links from billing system Stored within claims denial management system

Software Tracking Considerations n Step 1 - Identify Users and Needs: Medical Records – Track release of information – documents, data, and dates Finance – Data Analysis – Fiscal Exposure Accounting – Financial Statement Entries Case Management/Utilization Review – Workflow for Claim Determinations and Appeals Coding - Workflow for Claim Determinations and Appeals Compliance Dept – Compliance Program Monitoring Plan to identify Risk Areas for Investigation

Software Tracking Considerations n Centralized database to be used for numerous payers by multiple concurrent users n Specific Data Fields such as; Patient identifiers Audit number Dates of service Dates responses due by Tracking numbers, references n Ability to hold electronic files and scanned documents; copies of contractor communications, hybrid medical record, copies of postal service tracking, etc.

Software Tracking Considerations (cont.) n Designed to support workflow; “target dates for actions” and assigned party n Ability to store coding and utilization review notes/backup n Internet based; potential to support management of appeals by an external third party n Retain claim determination outcomes at all levels of appeal; including reason for denial n Progressive product development – working toward communicating with audit contractors electronically n Ability to generate AHA RACTrak data

Utilization Review Process at Admission n Martin Memorial – “Admission Per Case Management Protocol” Physician uses a standardized admission sheet - “Admit Per Case Management Standard” which supports physician designation for admission with delegation of the assignment of the “billing status” to Case Management Protocol to facilitate the assignment of the admission status Hospital approved criteria – InterQual® Review of a patient’s presenting severity of illness and intensity of services provided to treat that illness

Utilization Review Process at Admission n Martin Memorial – “Admission Per Case Management Protocol” Important Considerations Developed in collaboration with Florida QIO and Florida Hospital Association’s Corporate Compliance Group Policy was approved by the Medical Staff Does not affect or reflect the quality of care delivered Physician notifies Case Management if they disagree with admission status and are required to document in the medical reason for disagreement

Utilization Review Process at Admission n Martin Memorial – “Admission Per Case Management Protocol” Logistics All new admissions are placed in a “hold status” for admission type Chart reviews do not always occur on the day of admission, however, the review is based on patient’s clinical information at the time of admission Communicate to the physician via a sticker within the progress notes if the admission status is determined to be “Observation” Case Managers conduct “continued stay” reviews every three days

Utilization Review Process at Admission

Access to Utilization Review Documentation n Retain notes for future use on the Utilization Review Criteria Used to Qualify patients for inpatient admission n Document Category Cases was reviewed under Infectious Disease, Cardiac, etc. n Document clinical support of: Severity of Illness (clinical indicators, blood pressure, temperature, etc.) Intensity of Service (rate of IV medications, diagnostic testing, etc.) n Abnormal test results

Access to U/R Documentation n Meditech Screen 6

Physician Advisors n General Rule: UR Staff is restricted to assigning the admission status based on Interqual Guidelines n Exceptions to the general rule are agreed upon by the Physician Advisor and the UR staff which permit UR staff to apply medical judgment about patient’s condition n Remaining cases are sent for PA Review n PA Worksheet summarizes Case Facts n PA worksheet is filed in medical record and made available for outside record requests n Consider Interqual® Training n Physician Advisors Process - Backups

Questions

The National Medicare RAC Summit “The Basics of Preparing for and Responding to RAC Demands” March 5, 2009 Presenter: Kathy Skrzypczak Assistant Vice President, Corporate Services Martin Memorial Health System