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Alternative accreditor's deemed status is delayed

Accreditation Connection, June 26, 2006

TÜV Healthcare Specialists (TÜVHS) has been notified by the Centers for Medicare Services (CMS) that it must resubmit its application for hospital deeming authority.

The alternative hospital accreditor originally anticipated deemed status would be approved this month. Industry experts speculate CMS was concerned that TÜVHS would be overwhelmed with requests if it made TÜVHS official at this time and the alternative accreditor might not have enough auditors to meet demand.

"Given the magnitude of what we're doing, I would have been surprised if CMS didn't want some changes," said Stefan Butz, President and CEO of TÜV America, the parent company and majority shareholder in TÜVHS, in a company press release issued June 19. "We are a leading quality company, taking critical feedback and turning it into systemic improvement is what we do. CMS has given us the data we need, and we're well on our way to delivering a new proposal that will meet or exceed every requirement. We also look forward to the continued support of our hospital client base in charting new territory to introduce an innovative alternative to current accreditation alternatives."

By law, CMS could not extend the application, which is why TÜVHS must resubmit. The company estimates that its revised application will be submitted to CMS by the end of July. Approval wouldn't likely come until at least the end of the year.

TÜVHS, based in Cleveland, offers a hospital accreditation program called NIAHOSM (National Integrated Accreditation for Healthcare Organizations), that combines ISO 9001 quality management with CMS's Conditions of Participation (a requirement for federal reimbursements). TÜVHS has surveyed more than 20 hospitals using the NIAHOSM accreditation criteria.

"We are very close and are grateful for the guidance CMS has provided to make sure our new accreditation process is precisely aligned with their highest expectations," said Rebecca Wise, CEO of TÜVHS, in the release. "Much of our fine-tuning will address the unique way that ISO surveys integrate with traditional Medicare audits. The process needs to be extremely consistent, repeatable, and ready to meet the demand nationwide."

If TÜVHS receives approval of deeming status, it will become the first new hospital accreditation program in more than 40 years.

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