Practice Management Alert

Question: Can independent contracted physicians who work the emergency department reassign their right to bill to a third-party staffing company?

Does the Medicare reassignment rule that allows an employee to reassign the right to bill to the employer apply to contractors? Nevada Subscriber Answer: No, the reassignment rules do not allow independent contractors to reassign their right to bill to third-party staffing companies. The Medicare rule basically states that only the individual who actually provides the service can bill and receive payment for the service.

One exception to the rule, as you noted, includes employer and employee reassignments. An employee can always reassign her right to bill to the employer, regardless of where the employee supplies the service.

But for independent contractors, the only reassignment opportunity, generally speaking, is that an independent contracted physician can reassign the right to bill to the facility in which the physician provides the service, since these third-party staffing companies are not the owners of the facilities.

FYI: The HHS Office of Inspector General plans to look at reassignment issues in 2003.