Home Health & Hospice Week

For-profit vows to fight CMS ruling.

VistaCare Inc. is undergoing every home care provider's worst nightmare.

The Centers for Medicare & Medicaid Services is decertifying two VistaCare hospice programs in Indianapolis and Terre Haute, IN, the Scottsdale, AZ-based hospice chain says in a release.

A survey in May found the company noncompliant in areas such as patient care plans and furnishing core services, said Robert Daly in CMS' Chicago regional office, reports the Associated Press.

VistaCare had three opportunities to correct the problems, Daly told AP. "If something is not documented on paper, surveyors can't prove it is done," he said.

The survey findings pertain to VistaCare's Indy office, but the Terre Haute office shares its provider number so is also affected, VistaCare explains. The programs serve about 340 patients.

The decertification is effective Oct. 15, but provides a 30-day window during which VistaCare will continue to be reimbursed for care provided to patients in these two programs, VistaCare says in its release.

No Medicare or Medicaid reimbursement will be provided, however, to any new admissions after the decertification notice, the company adds.

VistaCare plans to challenge the survey ruling. "This decision follows limited surveys of our Indianapolis program by the Indiana Department of Health and is predicated on alleged compliance issues tied to paperwork and documentation," CEO Richard R. Slager says in the release. "The quality of our care is not--and never has been--in question," Slager insists.

"We believe this decision is based on erroneous findings during the survey process," says Roseanne Berry, VistaCare Chief Compliance Officer and Founder.  Slager adds, "Given ... the questionable and highly irregular survey results upon which the CMS decision was based, we are pursuing all potential avenues to have this decision reversed."

The company has used its documentation system in all other states and "it has been OK," Berry told AP. "In this case, we're working with the state to change our system."

VistaCare's stock price fell as much at 10 percent following the announcement.