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HBS Update - March, 2005 =


RHC Update Seminar—Spring, 2005

Click here to download the 2005 RHC Update Seminar Brochure=


Spring is here once again, and it’s time to prepare the Rural Health Clinic Medicare & Medicaid = Cost Reports. That means it’s a great time to get caught up on all that has changed regarding Cost Reporting, Billing and Certification issues over the last year. With this in mind, Healthcare Business Specialists is again offe= ring our popular, one-day Rural Health Clinic Update Seminars. The popularity of= the seminars is affirmed by a quote in Focus on Rural Health by Mary Amundson, = MA. She states ”attending these seminars is a virtual rite of spring...So= me participants have attended four or five years in a row.” =

Most people are aware that the 12/24/2003 Final Conditions of Participation related to RHCs have been rescinded. This means RHCs do not have to implement a Quality Improvement Program and are not subject to being decertified at this time. We will disc= uss options related to the QAPI or Annual Evaluation process and compare the responsibilities related to each of the programs. HIPAA Security procedures= to be completed by April 21, 2005 will also be covered. =

New Medicare Cost Reporting Forms w= ere issued January 2005 which facilitate the preparation of the Cost Reports electronically. We will discuss the new forms and the electronic filing procedures and review billing changes that have occurred for 2005 (including changes to skilled nursing billing, swing beds, Hospice, deductibles and new preventive services). We will cover in detail the new 168-pg. book from Medicare called The Guide to Medicare Preventive Services. We will also rev= iew billing for home care oversight, hospital services, office surgery, injecti= ons, radiology and laboratory billing.

To download a copy of the Brochure = for the 2005 Update Seminars, go to:

Click here to download the 2005 RHC Update Semi= nar Brochure


 CMS releases guidance on Preventive Services in January, 2005=


In January, 2005, CMS released guidance for billing preventive services in rur= al health clinics.  This 168 page manual is a great resource for rural he= alth clinics with questions regarding billing preventive services including the “Welcome to Medicare” Physical (IPPE), Pap Smears, Pelvic Exams, Mammography, Cancer Screenings, Diabetes screening tests, and many other preventive services. If you would like to download the book please go to:

   &n= bsp;            = ;     http://www.cms.hhs.gov/medlearn/psguid.pdf

This publication is = also included in our RHC Update Seminar CD in Tab 7 - Billing and will be discus= sed in our Update Seminars.   

&qu= ot;Welcome to Medicare" Physical (IPPE)

&qu= ot;The Medicare Prescription Drug Improvement and Modernization Act (MMA) of 2003 expanded Medicare’s coverage of preventive services. Central to the Centers for Medicare & Medicaid Services' (CMS') initiative to move Medicare toward a more prevention-oriented program is the new initial preventive physical examination (IPPE) also referred to as the "Welcom= e to Medicare" Physical Examination. All beneficiaries enrolled in Medicare Part B with effective dates that begin on or after January 1, 2005 will be covered for the IPPE benefit. This one-time benefit must be received by the beneficiary within the first six months of Medicare Part B coverage. The go= al of the IPPE, which also includes an electrocardiogram (EKG) are health promotion and disease detection and includes education, counseling, and referral to screening and preventive services also covered under Medicare P= art B."

The specific guidance regarding RHC billing is as follows:

• RHCs and FQHCs should follow normal billing procedures for RHC/FQHC services.

• Encounters with more than one health professional and multiple encounters with the same health professionals that take place = on the same day and at the same location constitutes a single visit. =

• The technical component of the EKG performed at = an independent RHC/FQHC is billed to the carrier using the practitioner ID and billing instructions.

 The technical component of the EKG performed at a provider-based RHC/FQHC is bi= lled on the applicable TOB (Table 3) and submitted to the FI using the base prov= ider number and billing instructions.

 RH= Cs and FQHCs use revenue code 052X.

           Effect= ive April 1, 2005, RHCs and FQHCs will no longer have to report additional line items when billing for preventive and screening services on TOBs 71x. Except for telehealth originating site facility fees reported using revenue code 0= 780, all charges for RHC services must be reported on the revenue code line for = the encounter, 052x, or 0900.

 <= /span>

 <= /span>

 <= /span>

F= acility Type

Type of Bill

Basis of Payment

Revenue Code

Rural Health Clinic (RHC) =

(ind= ependent and provider-based) =

71X=

All= -inclusive Rate

= (for professional services) =

 

52X

 

Some reminders regarding preventive services.  The professional components of Pap smears and Pelvic exams are not subject to medical necessity edits (only frequency) according to guidance from Riverbe= nd Government Benefits Administrator.  An example of a preventive service that may not meet medical necessity guidelines is Bone Density Scans. = The Technical Component would always be billable to the Part B Carrier/Base (Mother/Hospital) Intermediary if frequency guidelines are meet; however, Medicare may not consider it medically necessary for a physician to have a face-to-face encounter with a patient and deny the professional component if billed to the Intermediary.  Physicians do not normally perform Bone Density scans as they can easily be conducted by an X-Ray Technician. =

Other publications on preventive services can be found at:

http://www= .cms.hhs.gov/medlearn/preventiveservices.asp=


CMS issues Billing Instructions for Completion of Form CMS-1450 (UB-92)<= /b>

Effective April 1, 2005 on November 12th & 19th, 2004


CMS issued billing instructions for completion of the UB-92 on November 12, 2004. and effective April 1, 2005.  This document provides updated information regarding the proper completion of the 86 Form Locators= on the UB-92 Form.  If you would like to download the document; just clic= k on the following hyperlink:

http://www.cms= .hhs.gov/manuals/pm_trans/R368CP.pdf

The CMS description of this document is as follows: "(Rev.368, Issued: 11-12-04, Effective: 04-01-05, Implementation: 04-04-05) This section contains Medicare requirements for use of codes maintained by the National Uniform Billing Committee that are needed in completion of the Form CMS-1450 and compliant X12N 837 version 4010A1 institutional claims. Instructions for completion are the same for inpatient and outpatient claims unless otherwise noted.

If required data is omitted, the FI obtains it from the provid= er or other sources and maintains it on its history record. The FI need not se= arch paper files to annotate missing data unless it does not have an electronic history record. It need not obtain data that is not needed to process the claim. Data elements in the CMS uniform electronic billing specifications a= re consistent with the Form CMS-1450 data set to the extent that one processing system can handle both. Definitions are identical. In some situations, the electronic record contains more characters than the corresponding item on t= he form because of constraints on the form size not applicable to the electron= ic record."

In addition on  November 19, 2= 004, CMS issued 31 additional pages of billing instructions for rural health clinics.  This document can be accessed using the following link:=

RHC UB-92 Billing Instructions issued November 19, 2004 =

These instructions indicate that, effective April 1, 2005, RHCs will no longer have to report additional line items when RHCs bill Medicare= for preventive and screening services for RHCs and except for telehealth originating site facility fees reported using revenue code 0780, all charges for RHC/FQHC services must be reported on the revenue code line for the encounter, 052x, or 0900.

The general billing instructions in chapters 9, 18 and 32 of Pub.100-04, Medicare Claims Processing Manual are being updated to provide = more detailed instructions overall.   CMS is eliminating the additional line item reporting for preventive services in RHCs. Currently, RHCs are required to report a second line item when certain preventive services are = billed. Currently, the second revenue code line for reporting preventive services m= ay contain charges. Except for the telehealth originating site facility fee reported using revenue code 0780, all charges must now be reported on the revenue code line for the encounter, 052x or 0900.

Only three types of services are billed by Rural Health Clinic= s on the UB-92:

  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'>Professional or primary services not subject to the psychiatric limit bundled into line item(s) using  revenue code 052x;
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'> Services s= ubject to the psychiatric limit under revenue code 0900; and
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'> Telehealth originating site facility fees under revenue code 0780.

NOTE: Telehealth is not an RHC/FQHC service. As such, the originating site facility fee is billed in addition to the appropriate encounter billed in revenue code 052x or 0900.

Values for the fourth digit of Revenue code 052x are: <= span style=3D'color:black'>

  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'> 0520 =3D Freestanding Clinic – to be used by all FQHCs;
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'> 0521 =3D R= ural Health Clinic – to be used by RHCs clinics; and
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'> 0522 =3D R= ural Health Home – to be used by RHCs in home settings. <= /o:p>
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'> 0780 =3D Telehealth originating site facility fees
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'> 0900 =3D Behavioral Health Treatments/Services, General Classification”) = is used for services subject to the psychiatric limit on claims with date= s of service on or after October 16, 2003, that are received on and after October 1, 2004

There does appear to be some discrepancies in the two versions= of the instructions.  In the past, many RHCs have used revenue code 520 as the revenue code for nursing home visits.  The instructions appear to = indicate that revenue code 520 effective April 1, 2005 is reserved for FQHCs.  I asked for clarification for this point on the February 23, 2005 Open Door c= all with CMS and they did indicate that effective April 1, 2005, Revenue Code 5= 20 should only be used by FQHCs.  Nursing Home visits should be billed us= ing revenue code 522 after April 1, 2005. 

 


Swing Beds are Billable as RHC visits effective January 1, 20= 05


In the Febr= uary 23, 2005 CMS Rural Open Door session, David Wargo indicated that effective = January 1, 2005, RHCs can bill swing beds as a rural health clinic covered service.  Previously, CMS had considered a swing bed as being licensed= as a hospital bed and would not allow a rural health clinic to bill this servi= ce as a RHC service. (We billed the Part B Carrier/(Base/Mother/Hospital Intermediary) and was paid fee-for-service for swing bed services.

For information on skilled nursing go to the following link:

http://www.cms= .hhs.gov/manuals/pm_trans/R390CP.pdf

  


 = New RHC = Cost Report Forms issued in January, 2005


In January, 2005, CMS issued new cost reporting forms and instructions for Independent Rural Health Clinics This transmittal adds new material in the form of electronic cost reporting specifications to Chapter= 29, Rural Health Clinic (RHC) Form CMS-222-92 to be completed by RHCs. This transmittal also includes instructional revisions to insure consistency with the electronic reporting specifications. The following is a list of the rev= ised cost reporting forms:        

  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'>Worksheet S, Par= ts I & II -  Revised entire worksheet format to facilitate electro= nic cost reporting.
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'>Worksheet S, Part III  - Added worksheet to accommodate organizations filing under consolidated cost reporting option.
  • <= span style=3D'font-size:13.5pt;font-family:"Book Antiqua"'>Worksheet A - Ad= ded cost center codes to facilitate electronic cost reporting.

To downlo= ad the instructions and the Cost Report Forms in an Excel Spreadsheet; please clic= k on the following hyperlinks:

http://www.cms= .hhs.gov/manuals/pm_trans/R7P229.pdf

To downlo= ad the new cost report forms in Microsoft Excel (Filename R7P229.zip) click here.<= /span>

http://cms.hhs.gov/manuals/pm_trans/R7P229.zip

RHC Cost Reports should not be submitted to the Intermediary u= ntil these changes are reflected in the electronic cost report and filing system that you are using in order to comply with new electronic filing requirements.  Also, you be sure to use the new forms to complete the = cost report.


 HIPAA Se= curity Compliance due April 21, 2005 <= /o:p>

Are your Ready? Have you started?<= o:p>


RHCs have a big deadline coming up for HIPAA compliance.  HIPAA Security measures are to be implemented by April 21, 2005.  Unfortunately, many providers have had a Chicken Little attitude towards th= ese new regulations.  Providers are thinking "Every one said the sky = was falling when we had Y2K, HIPAA - Privacy,  HIPAA –transactions, = and nothing happened - Why should security be any different?” I am not su= re if HIPAA Security will be any different; however, RHCs should take steps to comply with these regulations.

One of the best, easiest, and cheapest ways to comply is by go= ing to the SharpWorkGroup website and downloading tools, policies and procedure= s, and presentations regarding HIPAA Security. The Sha= rpWorkGroup Security work group goal is to inform providers of the HIPAA Security Rule. With your help they want to provide the HIPAA Security help you need with a reasonable effort to understand the rules and become compliant!=

They focus on small providers and offer information and donate= d or developed tools that can assist in provider compliance efforts.  In addition, they plan to provide links to other web sites that may be of inte= rest to providers in their compliance efforts.  They also do an outreach ed= ucation series to promote HIPAA Security awareness and provide broad guidelines for provider compliance with the regulation. 

SharpWorkGroup conducts frequent presentations and we highly recommend attending one of their sessions.  We have invited them to sp= eak at our RHC Update Seminars this spring.  Here are just a few of the us= eful tools on the website.  I would recommend downloading some of the many presentations on the site.

 <= /span>

End of Newsletter

Mark R. Lynn

Healthcare Business Specialists

Suite, 502 Shadow Parkway

Chattanooga

Telephone: (423) 899-0945

Toll-free: (800) 768-0278

Fax: (423) 892-9437

 

Email: mrlhbs@aol.com

Email: marklynn@bellsouth.net=

Web:  = www.ruralhealthclinic.com

Group:  http://groups.aol.com/rural= hthclinics

Seminars: 2005 RHC Update Seminar Brochure Spring 2005.pdf

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