Home Health & Hospice Week

Industry News:

Senate Nixes $14 Million Cut To Medicaid In Budget Resolution

House hangs on to $20 million cut.

The U.S. House and Senate have approved their budget resolutions for 2006, and they have a big disagreement on Medicaid.

The Senate resolution originally included language directing the Senate Finance Committee to cut $15 billion from mandatory programs, of which $14 billion was expected to come from Medicaid, according to press reports. The House version included an expected $20 billion of similar cuts.

But on March 17, the Senate approved an amendment nixing the Medicaid cuts and instead proposing a study on Medicaid. The Senate passed its amended resolution that day, and the House passed its original version.

Now the bodies will duke it out in the reconciliation process to determine whether any of the Medicaid cuts are included in the final combined resolution.

"Many states face a Medicaid funding squeeze," notes the American Association for Homecare. "Homecare organizations have repeatedly made the case for making dollars go farther by devoting more Medicaid resources to homecare, which is patient-preferred and cost-effective," the association says in a release.
 

  • If you're using a computer from the Stone Age, you may have to upgrade by the end of this year. To accommodate the upcoming Quality Improvement and Evaluation System (QIES) in January 2006, the Centers for Medicare & Medicaid Services is transitioning to a new computer system and reporting software.

    To access outcome-based quality improvement (OBQI) and error reports on the upgraded system, home health agencies have to meet new minimum system requirements by Dec. 31, says a March 10 memo to surveyors (S&C 05-22).

    A recent CMS survey of nursing homes found about one-third of the facilities use computers that need upgrades to support the new software. Although CMS didn't survey HHAs, the agency said most systems at HHAs are likely due for an overhaul as well.

    The memo, including the new system specs, is at
    www.cms.hhs.gov/medicaid/survey-cert/sc0522.pdf. 
     
  • If your Return To Provider paper reports from intermediary Palmetto GBA haven't stopped coming yet, they will soon. Palmetto has discontinued paper RTP notices for HHAs in the Southeast and Southwest regions already, and now it's doing the same for agencies in Gulf Coast and Midwest areas, the intermediary says in its March newsletter to providers. Palmetto is eliminating the hard copy reports for Direct Data Entry (DDE) providers only on April 1, it says. 
     
  • North Carolina is moving ahead with plans to toughen up surveys for home health agencies. The state House Health Committee gave a thumbs-up to a bill that will spend more than $1 million over the next two years to hire eight new survey workers and inspect agencies once every two years instead of three, reports the Winston-Salem Journal.

    The bill also proposes to forbid HHAs from hiring workers listed as negligent on the state's Health Care Personnel Registry and give patients a list of rights, the newspaper says. Observers expect the bill to be passed as part of the state budget, unless budget-cutting prevents it.
     
     
  • Alabama Gov. Bob Riley (R) has put an indefinite halt to state approval of new inpatient hospice facilities and services. An executive order signed by Riley states that health care, Medicaid costs, and budgets can be "adversely impacted" by new inpatient hospice services or facilities, reports the Birmingham News.

    The state's Medicaid program requested the moratorium after hospice spending increased from $5.5 million in 1998 to $37.4 million in 2004. The move has put at least one request for an inpatient hospice approval on ice, the newspaper says.
     
     
  • Survey troubles reduced National Home Health Care Corp.'s profits in the quarter ended Jan. 31. Scarsdale, NY-based NHHC reported net income of $0.8 million on revenues of $24.2 million for the quarter, compared to a $1.1 million profit on $22.9 million in revenues for the same period last year.

    The profit dip was due in part to costs related to NHHC's Connecticut subsidiary being notified in October that it was out of compliance with a Condition of Participation and nine standards regarding Medicare certification. The subsidiary has submitted a plan of correction that was accepted by the state, the company says.
     
  • A former eastern KY-based durable medical equipment supplier was convicted March 9 of lying to Medicaid. He could face up to 15 years in prison for hiding unsavory information about his past, according to Kentucky Attorney General Greg Stumbo.

    Prior to opening his DME company, Letcher County Home Medical, operator James Narramore allegedly denied any criminal history in his application to Kentucky Medicaid. That false assurance helped him obtain a Medicaid provider agreement, Stumbo said.

    Letcher allegedly took in more than $400,000 in Medicaid billings after submitting the fraudulent application. Prosecutors say if Narramore offers to pay restitution for the claims, the AG will look favorably upon withdrawing the prison sentence.
     
  • Fifteen orthopedic footwear providers across Massachusetts have agreed to pay $526,000 to the state's Medicaid program to settle overpayment allegations levelled by the state.

    The settlement follows an April 2000 report by the state Inspector General that found widespread waste and abuse from 1995 to 1999 in the Medicaid Orthopedic Footwear Program.

    A subsequent investigation by the state attorney general found that the majority of orthopedic footwear providers had submitted incorrect claims for orthopedic shoes and inserts that had resulted in excessive payments.

    The orthopedic providers included in the settlement are: Advanced Orthopedic Services, Atlantic Prosthetics & Orthotics Company, Bill Chancey's Pedorthics, Boston Brace International, Cornell Orthotics & Prosthetics, Hanger Prosthetics & Orthotics East, Joel P. Dwyer C.P.O. Prosthetics & Orthotics, Ocean Orthopedic Services, Orthotic Consultants, Orthotics & Prosthetics Laboratories, Orthotics West, Pioneer Valley Orthotics & Prosthetics, Prosthetic & Orthotic Labs of Worcester, Therapeutic Shoe Corp. and The William A. Allen Co.