Home Health & Hospice Week

Compliance:

Hospice Proposed Reg Tackles Fraud Concerns

But look to forthcoming home health rule for Special Focus Program details.

Get ready for life to get harder, thanks to Medicare’s continued crackdown on hospice fraud and abuse issues.

Background: In recent years, everyone from federal watchdog agencies to members of Congress to mainstream news publications have taken the hospice industry and the Centers for Medicare & Medicaid Services to task for a host of fraud problems ranging from poor quality care to financial scams. CMS introduced a plethora of initiatives aimed at combatting the problem in last year’s rulemaking cycle, and continues the job in the latest calendar year 2024 proposed rule.

Case in point: The rule “proposes that physicians who order or certify hospice services for Medicare beneficiaries must be enrolled in Medicare or validly opted-out as a prerequisite for payment for the hospice period of care in question,” CMS explains in a fact sheet about the rule. “CMS is looking closely at the hospice industry, as we have increasing concerns about fraud, waste and abuse in this space. While this rule takes initial steps, this is part of a larger effort by CMS to address hospice fraud, waste and abuse that will continue this year,” CMS warns.

“Over the years we have issued various final rules pertaining to provider enrollment. These rules were intended not only to clarify or strengthen certain components of the enrollment process but also to enable us to take further action against providers and suppliers: (1) engaging (or potentially engaging) in fraudulent or abusive behavior; (2) presenting a risk of harm to Medicare beneficiaries or the Medicare Trust Funds; or (3) that are otherwise unqualified to furnish Medicare services or items,” CMS explains in the rule. Requiring ordering physicians to enroll in the Internet-based Provider Enrollment, Chain, and Ownership System (PECOS) would facilitate that ability.

Plus: “Many hospice certifying physicians are already enrolled in Medicare or have validly opted-out, meaning that they need take no action should our proposal be finalized, thus further reducing the burden on the hospice physician community,” CMS adds.

“This requirement would apply for all hospice certifi­cations,” the National Association for Home Care & Hospice explains in its rule analysis. That means “the patient’s designated attending physician, if any, and the hospice medical director or physician member of the interdisciplinary group (IDG) completing the initial hospice certification as well as the hospice medical director or physician member of the IDG completing any recertifications would need to be enrolled or be validly opted-out.”

The change would cause a 1,087-hour burden at a cost of $241,966, CMS estimates.

The rule includes a laundry list of fraud cases featuring shady physicians to bolster its proposal.

For example: “Two certifying physicians from a California hospice were convicted of health care fraud for falsely certifying beneficiaries as terminally ill,” the rule recounts. “The scheme involved illegal payments to patient recruiters for bringing in beneficiaries, establishing fraudulent diagnoses, and altering medical records,” CMS indicates.

But “we seek comment on this proposal,” CMS offers.

“With hospices being in the spotlight of late, it is not a surprise that CMS would make this enrollment proposal,” NAHC observes. And CMS has said “this proposal is likely one of additional future actions on program integrity in the hospice benefit,” the trade group points out.

CMS Zeroes In On Private Equity Ownership

CMS notes that it has already instituted other enrollment-related requirements to “capture additional information about provider and supplier ownership.” That includes “requiring the provider/supplier/hospice to explicitly identify whether a listed organizational owner/manager does or does not fall within the categories of entities listed on the application (e.g., holding company, investment firm, etc.), with ‘private-equity company’ and ‘real estate investment trust’ added to this list of types of organizations,” the rule notes.

“Significant attention is given to steps that CMS is taking or considering regarding Medicare enrollment for the purpose of reducing fraudulent and/or abusive practices, including revision of Form CMS-855A,” highlights consulting firm The Health Group in Morgantown, West Virginia.

Watch For SFP Details This Summer

Meanwhile, many hospices were expecting to see a detailed proposal of the Special Focus Program in this rule.

Reminder: The Consolidated Appropriations Act, 2021 included a host of sweeping hospice survey reforms incorporated from the HOSPICE Act of that year. They ranged from alternative sanctions (now called enforcement remedies) to surveyor qualifications and training to a survey process revamp. Then many of those provisions were finalized in the 2022 home health (not hospice) final rule of 2022 published in November 2021. In January, CMS dropped the implementing guidelines for the new survey process (see HHHW by AAPC, Vol. XXXII, No. 6).

However, the rules for two of the most punishing new fraud and abuse-fighting tools — the enforcement remedies of civil money penalties and payment suspensions — are still outstanding with no defined due date.

Details of another potentially punishing provision, the SFP that will target poor quality hospices for extra surveys, are also not yet out. But they will come in the forthcoming home health 2024 proposed rule, CMS confirms in this rule. The home health rule is expected in late June or early July.

“The final [Technical Expert Panel] feedback will be publicly available on the CMS website in April 2023,” CMS reveals in the rule. “Accordingly, CMS plans to include a proposal implementing an SFP in the CY 2024 Home Health Prospective Payment Update Rate proposed rule.”

In addition to addressing specific program integrity efforts, CMS includes a plethora of utilization and other data that point to the steep rise of the hospice benefit in recent years.

For example: Average length of stay figures have increased; for-profit hospices have much higher live discharge rates than nonprofits; and non-hospice spending during a patient’s stay has increased significantly, especially for skilled nursing facility patients, CMS points out.

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