Home Health & Hospice Week

Industry Notes:

Senators Criticize Medicare Appeals Changes

ALJ changes could restrict access to appeals avenue, top lawmakers say.

The plan to shift the administrative law judges from the Social Security Administration to the Department of Health and Human Services has serious problems that could prevent you from receiving a fair shake in appealing your denied claims, Sens. Charles Grassley (R-IA) and Max Baucus (D-MT) warn in a letter to the SSA and HHS secretaries. 
 
The transfer will begin in July and be complete by October (see Eli's HCW, Vol. XIV, No. 10, p. 74).
 
The problems: HHS plans only three field offices plus a headquarters for the whole nation - not enough locations to provide meaningful access to ALJs. That means ALJs will hear most cases via video conferencing, but HHS doesn't seem to be up to providing video conferencing facilities, the Senators worry.
 
The field offices still lack staff, and some ALJs will be forced to take on management-related tasks that could distract from their appeals-related responsibilities. Some of the new ALJs may be totally untrained, and the "nuts and bolts" issues of running the new offices remain unsettled, the letter charges.

 

  • CMS has kicked off a disease management demonstration project to evaluate how new services could enhance chronically ill patients' health, according to a recent Medlearn Matters article.
     
    The three-year project in Florida is available to fee-for-service Medicare beneficiaries with advanced-stage illnesses including congestive heart failure, diabetes or coronary heart disease. Disease management organization LifeMasters will enroll up to 30,000 Flor-ida beneficiaries for the demo.
     
    You could run into problems billing for these patients, however. Because the demonstration has an HMO plan number (H5413) for the DM payments to LifeMasters, intermediaries and carriers may mistakenly apply managed care rules to all claims for them. "No referrals for care are needed and all Fee-For-Service claims will be processed under traditional Medicare payment rules," CMS stresses in the article.
     
     
  • Elimination of the 5 percent add-on for rural home health patients is getting national attention. Newspapers including the Columbus Dispatch and the Arkansas Democrat-Gazette ran stories on the payment reduction last week, with the Associated Press picking up some of them.
     
    "It is simply unfair to reimburse these providers any less than what they currently receive," U.S. Rep. Mike Ross (D-AR) told AP. Without home care, many patients will end up in costlier institutional settings, noted Rep. Vic Snyder (D-AR), who is a physician.

     

  • The Region D DME regional carrier hopes to educate physicians about durable medical equipment, prosthetics and orthotics.
     
    CIGNA HealthCare's Medicare Web site has launched a new feature called "M.D. Corner." Created by Medical Director Dr. Robert Hoover, M.D. Corner aims to provide DMEPOS information relevant to both practicing physicians and the supplier community. The feature is accessible from the main CIGNA Medicare Web site page at
    www.cignamedicare.com, and it in-cludes a feedback link for suggesting new topics.

     

  • Tenet Healthcare Corp. has sold four more of its hospital-based home health agencies. CareSouth HomeCare Professionals of Augusta, GA bought California HHAs from Desert Regional Medical Center in Palm Springs, Alvarado Hospital Medical Center in San Diego, Community Hospital of Los Gatos, and Garden Grove Hospital and Medical Center in Garden Grove, reports the Dallas Business Journal. CareSouth also purchased an infusion center at Desert Regional.
     
    Dallas-based Tenet, which agreed to sell 11 HHAs to Amedisys Inc. earlier this year, now has one remaining HHA, one infusion center and two hospices. None are for sale, the Journal says.
     
    The net proceeds on the sales after tax were about $6 million, Tenet says.

     

  • Gentiva Health Services Inc. has signed an agreement to acquire the home health operations of Heritage Home Care Services Inc. in Utah for undisclosed terms. The asset purchase scheduled to close by this summer is expected to increase Gentiva's annual revenues by more than $20 million, the Melville, NY-based home health giant says.
     
    Heritage owns and operates Heritage Brookside Home Care and Horizon Home Health serving more than 5,000 patients annually. The units will keep their names and current leadership after the sale, Gentiva says.

     

  • More convictions for DME shenanigans have come out of Florida. A Miami jury last month convicted five more defendants for their involvement in a $5.5 million fraud scheme involving DME, law en-forcement officials announced. They are physicians Jose Garrido and Edgard Zamora, office manager Dalia Fernandez and patient recruiters Antonio Pina and Deisy Aviles.
     
    Those convictions bring to 20 the total number of people convicted in connection with a scheme in which providers fraudulently billed Medicare and private insurance companies for medical services, equipment, medications and physical therapy that were either not provided or were medically unnecessary.

     

  • Offers of free milk have resulted in 10 people in California being indicted on charges of DME fraud. The defendants are accused of billing Medicare for more than $24 million for nutrition products and motorized wheelchairs that were not medically necessary and, in many cases, never provided. Among those arrested were Phu Luong, the operator of United Medical Supply in Huntington Beach, along with a number of his employees and cooperating physicians.
     
    People connected with the scam allegedly recruited beneficiaries in the Vietnamese and Korean communities with promises of free "milk" - meaning enteral nutrition - and motorized wheelchairs.