Corporate Compliance

1. Tenet indicted for physician recruitment scheme
2. Documentation improvement tips for the medical staff
3. Pay-per-view article: When to create facility-specific coding guidelines
4. HMO pays $96,923 in duplicate payments
5. Tip: Appearances do matter

Compliance Monitor, July 28, 2003

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Vol. 6, No. 58


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Tip of the Week

Compliance Hot Topics: Billing and Coding, EMTALA, Stark, HIPAA

Question of the Week

In This Week's Issue

  1. Tenet indicted for physician recruitment scheme
  2. Documentation improvement tips for the medical staff
  3. Pay-per-view article: When to create facility-specific coding guidelines
  4. HMO pays $96,923 in duplicate payments
  5. Tip: Appearances do matter

This Week's Headlines


1. Tenet indicted for physician recruitment scheme

When Tenet Health System paid $10,000,000 to fund more than 100 physician relocation programs, it made a costly mistake. In addition to paying the physicians to relocate, Tenet also paid the physicians to refer patients to Alvarado Hospital, according to the U.S. Attorney for the Southern District of California.

The 17-count indictment also alleges that Tenet paid the "host" medical practices with whom the recruited doctors were placed, in exchange for patient referrals. Among the arrangements described in the indictment were relocation agreements with four physicians who joined the practice of Dr. Paul Ver Hoeve, located in the Alvarado service area. The defendants arranged for Ver Hoeve personally to receive at least $600,000 of the relocation agreement money.

The indictment charges defendants with one count of conspiring to violate the federal anti-kickback statute, and with 16 counts of offering and paying illegal remuneration. Each count carries a maximum penalty of five years imprisonment and a $25,000 fine.

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2. Documentation improvement tips for the medical staff

We can trace inadequate documentation to the root of the health care industry's current problems-from substandard patient care to financial loss. Documentation is the key to appropriate charge capture, and an incomplete or inaccurate record forces health information managers (HIM) to query physicians. That slows the billing process and, in turn, cash flow. Documentation errors lead to fraud and abuse, non-compliance with standards set by the Joint Commission on the Accreditation of Healthcare Organizations, and inaccuracies in statistical databases. Make sure your physicians are documenting appropriately. To help, purchase the handbook, "Documentation Improvement Handbook for the Medical Staff." Here's an example of the information this handbook offers physicians:

Question: What are the best practices for documenting informed consent to minimize liability for myself as the treating physician and the facility?

Answer: Informed consent for a procedure or anesthesia is a process between the physician and the patient, according to current legal opinions. As a physician, you have the responsibility to document that you discussed your assessment and recommendations with the patient, including the risks and benefits of the recommended course of treatment and other treatment options. If this discussion occurs between the physician and the patient (and sometimes the patient's family), it stands to reason that the physician should document this activity in the medical record. All too often, physicians count on a hospital's or other facility's staff to obtain a patient's signature on an informed consent form as adequate documentation.

Physicians should sit down with the patient, including his or her family if appropriate, and dedicate adequate time and attention to the process of obtaining informed consent.

Immediately after this activity, the physician should document in the medical record that the activity occurred and include a brief summary of the content discussed.

To get the rest of this answer, as well as information on the need for clear handwriting, documentation requirements, and the time limits to complete medical records, order the handbook "Documentation improvement handbook for the medical staff." Click here for more information or to order.

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3. Pay-per-view article: When to create facility-specific coding guidelines

It seems to take forever to get official coding guidance and once it's published, the guidance doesn't always answer all related coding questions on the subject; this invariably causes more frustration for coders. The long waits for guidance are due to the collaboration between the four cooperative parties involved in creating coding guidelines: the American Hospital Association (AHA), the American Health Information Management Association, the National Center for Health Statistics, and the Centers for Medicare & Medicaid Services, says Nelly Leon-Chisen, RHIA, director of coding and classification for the AHA.

The guidance is not supposed to answer every question, says Nelly Leon-Chisen, RHIA, director of coding and classification for the American Hospital Association (AHA). "Guidelines are meant to be general, overarching principals that you apply to coding," she says. "They're not meant to be exhaustive. They're not meant to answer every question coders have." Go to "Use official coding guidelines for general rules, create facility-specific guidelines for consistency" for the rest of this article. Subscribers to the online version of Briefings on Coding Compliance Strategies have free access to this article. Subscribers to the print edition can find it in their July issues.

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You can read this article-and much more-in the July issue of Briefings on Coding Compliance Strategies. Your cost: Five stories for only $30! You'll learn how tips for auditing your facility's claims denials for medical necessity issues, and strategies for examining diagnostic testing in the emergency room. Choose between a "PDF or "HTML version for just $30. Online subscribers have free access to this issue. Print newsletter subscribers can find it in their mailboxes.

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4. HMO pays $96,923 in duplicate payments

One Medicare contractor may need to review what it does to prevent duplicate payments, according to a recent audit report from the Office of Inspector General (OIG). Welborn Health Plan, a cost-based health maintenance organization, paid two providers $96,923 in duplicate Medicare payments.

The OIG found that Welborn also claimed $700 in unallowable costs on its fiscal year 2000 cost report. That means that $35,280,509 of the costs that Welborn claimed on its Medicare cost reports were reasonable, allowable, and allocable.

The OIG recommends that Welborn do the following:

  • Refund the $700 related to unallowable costs claimed on the fiscal year 2000 cost report
  • Refund the $96,923 of duplicate Medicare fee-for-service payments made to its providers
  • Review its duplicate payment detection policies and assess the effectiveness of the Medicare compliance training given to participating providers

    For more information on the audit report, "Audit of Medicare Cost Reports and Duplicate Payments for Welborn Health Plans for the Fiscal Years 1999 Through 2001 - Welborn Health Plans, Inc., Evansville, Indiana," click this link: http://oig.hhs.gov/oas/reports/region5/50200067.htm

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    5. Tip: Appearances do matter

    Compliance professionals should include conflict of interest audits on a list of high-risk areas. This subject is worth bringing to the table, since even the appearance of a conflict of interest can prove embarrassing.

    Recently, the Boston Globe reported that the spouse of a chairperson of a local university's board of trustees allegedly did not disclose that he is a part owner of a biomedical company that contracted with the university's medical school. The company performed pre-clinical drug testing for the university while his spouse served on the board.

    The Massachusetts ethics law prohibits public officials, including state university trustees, from receiving a financial benefit through their official position. The law also requires public officials to disclose any circumstances that would cause a reasonable person to believe the official faces a conflict of interest. The company in question is part of a growing field of organizations that help drug makers and other medical firms find clinical sites (often at universities) to test products. Potential conflicts of interest faced by members of the university's board of trustees are becoming an increasing concern, the Globe reported. In addition, more universities now require their trustees to sign ethics agreements forcing them to report potential conflicts of interest in which they or their relatives would materially benefit from business with the institution.

    This story proves that appearances do matter. An organization that wants to operate in an environment of trust and integrity needs to take steps to avoid compromising those values.

    This column was written by Hank Vanderbeek, MPA, CIA, CFE. IRP, Inc.

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    Network with your audit colleagues

    "Audit Talk" is a new, moderated chat forum that members can use to post messages or questions for their peers 24-hours-a-day. "Audit Talk" offers a free forum to network, share ideas, and solve problems for those in the audit industry. Getting involved is easy. To subscribe, just send your request to this e-mail: owner-audit_talk@hcpro.com.


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