Industry Note:
OIG Hits Therapy, Supplies In New Report To Congress
Published on Wed Nov 02, 2011
Not surprisingly, hospice-nursing home relationships also are on the watchdog agency's hit list. You can expect another reduction to the home health prospective payment system base rate when rebasing begins in 2014. That's because the HHS Office of Inspector General wants to remove physician therapy service costs from the PPS pool of money, according to the OIG's recently released semiannual report to Congress. "Since 2003, Medicare has allowed Part B payments to physicians for therapy services furnished during episodes in which beneficiaries are receiving home health care. Medicare also includes physicians' therapy services in the home health PPS base rate paid to the HHA," the OIG says in the report. "As a result, Medicare pays twice." The OIG also hits the non-routine medical supply problem in its report. In 2007 and 2008, Medicare overpaid durable medical equipment suppliers an estimated $3.4 million for non-routine supplies that should have been bundled [...]