Corporate Compliance

1. HIPAA security: Use risk analysis to prioritize your efforts
2. 12 steps for auditing medical necessity
3. Gov't audit insider

Healthcare Auditing Weekly, July 1, 2003



Health Care Auditing Strategies
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Guide to Compliance Auditing: Applying OIG Techniques and Tools
Strategies for Health Care Compliance
Tuesday,
July 15, 2003
Vol. 1, No. 11


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In This Week's Issue

  1. HIPAA security: Use risk analysis to prioritize your efforts
  2. 12 steps for auditing medical necessity
  3. Gov't audit insider

This Week's Headlines


1. HIPAA security: Use risk analysis to prioritize your efforts

Conducting a security risk analysis will help you determine where to spend your time and money-and where not to waste your resources. This analysis will also help you determine whether to deal with certain addressable specifications, says Kevin Beaver, CISSP, founder and president of the Atlanta-based information security consulting firm Principle Logic, LLC. Organizations can scale addressable specifications to their needs, or eliminate the specification if it doesn't make sense for the organization.

When you perform a risk analysis to help your organization comply with the upcoming medical information security regulations, analyze the costs and benefits of certain protections. Use the following steps in your risk analysis:

1. Identify and place value on your assets-and estimate potential losses
2. Identify the threats to your assets
3. Evaluate your risk safeguards

For more on performing a security risk analysis, subscribe to the newsletter "Strategies for Health Care Compliance." This newsletter helps compliance professionals thrive in the ever-changing compliance environment by providing easy-to-understand compliance advice and analysis on the latest regulations. Each month, this 12-page newsletter offers how-to information, tips, and tools for improving the efficiency and effectiveness of your corporate compliance program. Click here to receive 10% off the regular price.

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Are you auditing correctly?

Auditing and monitoring are among the most important parts of your compliance program and probably the most complex. Determining what to audit and monitor can be an issue you're struggling with, but our special report "An Inside Look at Compliance Auditing and Monitoring: Integrating Government Standards" can help. Should you use internal staff or an outside firm to conduct your audits? What do you do when a problem arises? How do you protect sensitive information? This special report has the answers you need. Order it today at http://www.hcmarketplace.com/Prod.cfm?id=1201&s=ER21949A.



2. 12 steps for auditing medical necessity

To make sure fiscal intermediaries pay your facility what it deserves, perform pre-billing and post-billing medical necessity audits. Use the following 12 steps:

1. Choose samples based on volume and diagnostic tests, says Stacie Buck, RHIA, LHRM, president of HIM Associates in North Palm Beach, FL. "It is important to audit each department that orders and performs ancillary tests. Make sure the sample captures all diagnostic tests performed by the facility."

2. Obtain the following documentation for each patient included in the audit:

  • Signs/symptoms or diagnosis on test order
  • Diagnostic test results
  • Emergency department (ED) record for ED patients
  • Copy of UB-92
  • National coverage determinations and applicable local medical review policies (LMRP) from the fiscal intermediary

    To get all 12 steps for auditing medical necessity, plus tips on examining medical necessity denials, identifying risk areas, and using LMRP criteria, buy the pay-per-view article "Medical necessity: Tips for auditing your facility's claims denials." The article costs $10. Subscribers to the online version of Health Care Auditing Strategies have free access to it. Subscribers to the print edition can find it in their July issues.

    BETTER DEAL!
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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.



    3. GOV'T AUDIT INSIDER

    Hospital consolidation

    When two hospitals consolidated to form the Medical Center of Louisiana at New Orleans (MCLNO), did they follow Medicare regulations? The center's change of ownership is analyzed here in this audit.

    The Office of Inspector General (OIG) used the following steps in its audit:

    1. Accessed the national claims history files to identify patterns indicating a potential hospital consolidation, with one of the hospitals reporting most of its inpatients transferred to the same hospital.

    2. Identified the following University Hospital or MCLNO claims

  • Those the center never should have submitted because the patient was moved between its two campuses
  • Those the center should have submitted as a transfer to another prospective payment system hospital, instead of as a discharge
  • Those that affected the consolidated cost report for the following years ending on June 30: 1995, 1996, 1997, and 1998

    3. Confirmed the consolidation of University and MCLNO by reviewing files for TriSpan, the fiscal intermediary for the state of Louisiana.

    4. Discussed the change of ownership regulations with TriSpan officials and the procedures they followed for audit or reimbursement of consolidating hospitals.

    5. Discussed with the hospitals' internal auditors the reasons for the continued use of both provider numbers to submit consolidated cost reports for the affected years.

    For more information on the OIG's "Review of Compliance with Medicare Regulations Related to the Consolidation of University Hospital and the Medical Center of Louisiana at New Orleans," go to this Web link: http://oig.hhs.gov/oas/reports/region6/60200012.pdf

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    To learn more about the Sarbanes-Oxley Act and how it affects internal auditors and compliance officers, order the special report "Sarbanes-Oxley Act: Impact on Health Care Organizations"


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