Who can’t conjure up an image of Jack Nicholson in his hospital gown in “Something’s Gotta Give?” Jack and every other hospital patient will be happy to know that renowned designer Diane von Furstenberg has solved their hospital gown problems.
Cleveland Clinic President and CEO Toby Cosgrove asked von Furstenberg to design a modern hospital…
The Departments of Justice and Health and Human Services released a report last week showing that the government has achieved the highest return on investment in the 16-year history of the Health Care Fraud and Abuse (HCFAC) Program. According to the report, for every dollar spent on healthcare-related fraud and abuse investigations in the last three years, the government recovered $7.90.
The government recovered $4.2 billion from healthcare fraud enforcement efforts in FY 2012, up from $4.1 billion in FY 2011. The government continues to focus on reducing fraud and waste in the healthcare system.
“This was a record-breaking year for the Departments of Justice and Health and Human Services in our collaborative effort to crack down on health care fraud and protect valuable taxpayer dollars,” said Attorney General Holder. “In the past fiscal year, our relentless pursuit of health care fraud resulted in the disruption of an array of sophisticated fraud schemes and the recovery of more taxpayer dollars than ever before. This report demonstrates our serious commitment to prosecuting health care fraud and safeguarding our world-class health care programs from abuse.”
The government also touted the use of fraud-fighting tools authorized by the Affordable Care Act including enhanced screenings and enrollment requirements, increased data sharing across the government, expanded recovery efforts for overpayments and greater oversight of private insurance abuses. Screening of all 1.5 million Medicare-enrolled providers through the new Automated Provider Screening system began in FY 2012. The report states that nearly 150,000 ineligible providers have already been eliminated from Medicare’s billing system.
While union organizing is decreasing in so many other parts of the economy, the healthcare industry remains a target. The Service Employees International Union in particular continues in its efforts to organize healthcare facilities throughout the United States. A recent settlement agreement through the NLRB between the University of Pittsburgh Medical Center and the Service…
President Barack Obama signed the American Taxpayer Relief Act of 2012, often called the “fiscal cliff” agreement, on January 2, 2013. Buried in the 59 pages of the act is a seven-line amendment to Section 1870 of the Social Security Act. This section bars recovery of overpayments from providers who are “without fault” and automatically deems a provider to be without fault three years from the year in which the original payment was made (unless there is evidence of fault). The three-year “without fault” limitation provision was enacted in 1972. Without much notice, the fiscal cliff deal extended this to five years.
The push for extension of the limitation began when the Department of Health and Human Service’s Office of Inspector General (OIG) issued a report recommending to the Centers for Medicare & Medicaid Services (CMS) that it pursue legislation to extend the statute of limitations. (See OIG, Obstacles to Collection of Millions in Medicare Overpayments.) This report blamed the time limitations on reopening and recovery of payments (four years and three years, respectively) as the reason why approximately $330 million in overpayments could not be recovered by CMS. The OIG also concluded that CMS’ inadequate guidance and monitoring of contractors was to blame. The Congressional Budget Office (CBO) has issued a report estimating that $500 million would be added to the federal treasury by 2022 as a result of the statute of limitation change. (See CBO, Detail on Estimated Budgetary Effects of Title VI.)
The biggest question for providers is how to deal with this change going forward. The following illustration demonstrates how the three-year limitation period applied: Provider was notified on February 22, 2009, that it had been paid for services provided to beneficiary. On January 2, 2013, the contractor determined that provider was overpaid for these services. If there was no evidence that provider acted fraudulently, this overpayment could not be recovered because under the statute of limitations the right to do so expired on December 31, 2012. Had the contractor determined that the provider was overpaid on any date prior to December 31, 2012, it would have been recoverable. (See Medicare Financial Management Manual, Chapter 3, Section 80.1.) Accordingly, any payments made in 2009 or before were not recoverable as of January 1, 2013.
Pediatric critical care transport teams at the Alfred I. duPont Hospital for Children in Wilmington, Delaware participated in a study using iPads to communicate about the patient’s condition prior to and during transport. The study, which was funded by the Nemours Fund for Children’s Health, found that use of iPads provided better communication between the transport…
Recently, the U.S. Department of Health and Human Services (HHS) announced a settlement with the Hospice of North Idaho (HONI) for potential violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Security Rule. The settlement, which was for $50,000, is unique because it is the first settlement involving a breach of electronic…
The Wall Street Journal is reporting that virtual physician visits are on the rise, and more payors are viewing such visits as a way to reduce the cost of care while also making care more convenient for patients. UnitedHealth, Aetna, and most recently, WellPoint are now offering such services or will be soon.
According to…
A recent report by the Office of Inspector General for the Department of Health and Human Services (OIG) concluded that in Fiscal Year 2010, 61% of Medicare providers that appealed CMS payment decisions were fully successful in their respective appeal. In other words, these providers persuaded the Administrative Law Judge (ALJ) handling the appeal to completely overturn previous adverse payment decisions made by CMS and its contractors. Notably, of the 61% of providers that were successful, those appealing Part A and B claims had the most success, 67% and 59% respectively.
The Medicare overpayment appeal process consists of four levels. At the first level of appeal, which is available after an initial overpayment determination, the individual or entity (appellant) appeals the overpayment decision to CMS’s Medicare Administrative Contractor. If the appellant is unsuccessful, the next appeal is administered by CMS’s Qualified Independent Contractor (QIC). The third level of appeal is administered by the ALJ, and the fourth level is administered by the Medicare Appeals Council. OIG’s report contrasted the high success rate at the ALJ level to the low 20% success rate at the QIC level. While there are many reasons for the difference, OIG’s report found that the main reason is that ALJs tend to view Medicare’s reimbursement and coverage policies less strictly than CMS’s contractors. OIG also found that CMS participated in only 10% of all ALJ appeals, which resulted in the ALJ overturning CMS’s decision in 60% of these cases.
The California Supreme Court has agreed to hear a case to decide this issue (Fahlen v. Sutter Central Valley Hospitals, 208 Cal. App. 4th 557 (2012)). The case pits the sometimes adverse interests of physicians against the interests of hospitals when employment and practice privilege issues collide. Physicians who allege their privileges have been terminated in retaliation for blowing the whistle do not want to wait to file a whistleblower case until all administrative and judicial remedies concerning their clinical privileges are exhausted. On the flip side, hospitals do not want to fight physicians on two fronts: in court and in the hospital’s own peer review process with the potential for judicial review.
The hospital in the case, Sutter Central Valley Hospitals, declined to renew the physician’s privileges after peer review proceedings, and that determination was upheld by the hospital’s board. While the physician, Dr. Fahlen, might have been able to challenge that decision in court, he chose to file a lawsuit against the hospital with a number of claims, including claims under California’s whistleblower protection law (Cal. Health & Safety Code Section 1278.5, subd. (a)). Dr. Fahlen claims that he lost his privileges as retaliation for blowing the whistle on dangerous nurses.
In its Semi-Annual Report to Congress, OIG announced that expected recoveries for FY 2012 are $6.9 billion. The $6.9 billion consists of $923.8 million in audit receivables and $6 billion in investigative receivables. The investigative receivables include criminal restitution, settlements pursuant to False Claims Act (FCA) cases and Civil Monetary Penalty (CMP) actions, and…
