Home Health & Hospice Week

Industry Notes:

Say Goodbye To Coding Grace Period

You have HIPAA to thank for more administrative inflexibility.

The Health Insurance Portability and Accountability Act requires the Centers for Medicare & Medicaid Services to scrap the 90-day grace period that used to be in place for changes to both HCPCS and ICD-9 diagnosis codes, according to two new transmittals (Nos. 89 and 95).

The grace period aimed to allow providers "to ascertain the new codes and learn about the discontinued codes," CMS says.

HIPAA's "transaction and code set rule requires usage of the medical code set that is valid at the time that the service is provided," the agency says. "Therefore, CMS is eliminating the 90-day grace period for billing discontinued ICD-9-CM diagnosis codes" effective Oct. 1, 2004 and HCPCS codes effective Jan. 1, 2005, CMS tells providers in the Feb. 6 transmittals.

  • You'd better go back and check your rejected claims from January again if Palmetto GBA is your regional home health intermediary.

    Claims received by Palmetto between Jan. 16 and Jan. 20 may have been incorrectly rejected as duplicates, Palmetto says on its Web site. The claims, which would have appeared on remittance advices (RAs) dated Jan. 23, 24 and 25, can be identified with reason code (RC) 18.

    "If your claim did not process for payment due to an incorrect rejection as a duplicate, please resubmit the claim for payment," Palmetto instructs.

  • Starting this July, there'll be a new name for first-level Medicare appeals - redeterminations, CMS decrees in Feb. 6 Transmittal No. 97.

    And that's not the only change. Contractors must complete all redeterminations within 60

    "If your claim did not process for payment due to an incorrect rejection as a duplicate, please resubmit the claim for payment," Palmetto instructs.

  • Starting this July, there'll be a new name for first-level Medicare appeals - redeterminations, CMS decrees in Feb. 6 Transmittal No. 97.

    And that's not the only change. Contractors must complete all redeterminations within 60 days, and use a new letter to inform providers of their decisions.

    More appeals system changes required in recent years' Medicare laws will be forthcoming, CMS promises.

  • Tired of getting conflicting advice from different intermediaries and carriers?
    Instead of relying on various contractors to write up provider education articles on new CMS instructions in the very short window of time after their issuances, CMS will now provide both the instruction and the education article at the same time, the agency says in Feb. 5 Transmittal No. 54. "CMS has decided to prepare consistent materials for contractor outreach for Medicare providers in a centralized fashion," available on CMS' Medlearn Web site (www.cms.hhs.gov/medlearn/matters).

    CMS aims to eliminate disparities due to differing interpretations or just confusing or inadequate educational language, it says.

  • Twenty new K codes for wheelchair cushions will replace 11 outgoing E codes and 3 outgoing K codes, CMS says in Feb. 6 Transmittal No. 83. The change takes effect July 6.

  • Gentiva Health Services Inc. is flexing its Medicare muscle. The Melville, NY-based home nursing chain increased its Medicare revenues by 25 percent - $10.1 million - in the quarter ended Dec. 28, 2003, compared to the same period in 2003. Overall the company reported net income of $41.8 million on revenues of $203.9 million for the quarter, but much of that profit came from a tax benefit. Income from continuing operations was $4.2 million.

  • Lincare Holdings Inc. added 82 new locations in 2003, with 11 percent internal growth and 8 percent growth through acquisitions, the home oxygen and respiratory giant says. Clear-water, FL-based Lincare reported net income of $62.0 million on revenues of $302.8 million for the quarter ended Dec. 31.

  • Roto-Rooter Inc. expects to close its acquisition of hospice powerhouse VITAS Health-care Corp. by the end of February, a bit ahead of schedule (see Eli's HCW, Vol. XIII, No. 1). Miami-based VITAS recorded net income of $5.4 million on revenues of $121.1 million for the quarter ended Dec. 3, Cincinnati-based Roto-Rooter says in its earnings statement. "We expect VITAS will continue to expand its services and geographic presence" after the acquisition, Roto-Rooter CEO Kevin J. McNamara says in the statement.

  • Tulsa, OK-based Trinity Hospice Inc. has purchased Hospice of Tennessee, with locations in Nashville, Chattanooga, Dickson and Lebanon, for undisclosed terms. The purchase marks Trinity's entry into the Tennessee market, which has "enormous" organic growth potential, the company says.

    Trinity, which says it is the nation's sixth-largest hospice provider, aims to expand throughout the southern U.S.

  • Foley, AL-based Vanguard Health Services is aiming to significantly expand its presence in the state - if state authorities give their OK. Vanguard plans to add seven offices in Dale, Etowah, Lowndes, Macon, Montgomery, Morgan and Shelby counties if it can obtain the necessary certificate of need approvals for them, reports the Birmingham Business Journal.

    Vanguard, which also has offices in Florida, expects to spend $75,000 to establish each of the seven new offices and an additional $105,000 in first-year operating costs at each location, according to the paper.