Confusing observation status can cost facilities
Compliance Monitor, March 1, 2006
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Physicians sometimes confuse observation status with clinical observation and fear that an observation classification will result in different care for their patients or a lower professional reimbursement, according to Joseph Zebrowitz, MD, executive vice president of Executive Health Resources in Drexel Hill, PA.
With that in mind, clarify to physicians that under Medicare, any bed in the hospital can be an observation bed, that patient care is unaffected, and that professional reimbursement differs by mere pocket change. "The bottom line to deliver to your physicians is same service, same bed, and essentially the same reimbursement for physicians," Zebrowitz said.
According to Zebrowitz, every patient a facility incorrectly classifies as observation can result in $4,500 in lost revenue. If staff incorrectly categorizes even one patient per day, an average-sized hospital could lose more than $1.5 million per year. "I'll tell you, many hospitals have quite a few more inappropriate observations than one per day," Zebrowitz said.
This tip is an excerpt from Strategies for Health Care Compliance.
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