The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue...

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The National Medicare RAC The National Medicare RAC Summit Summit Washington DC March 5-6 Washington DC March 5-6 2009 2009 Embed the RAC Program in Your Revenue Cycle Process

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Carol Richardson, MA, RHIA March Adventist Health, Inc. – Roseville, CA California, Oregon, Washington and Hawaii 17 hospitals with 2800 beds – 13 in California 110,188 admissions 392,495 emergency department visits 1,969,779 outpatient visits 22 rural health clinics 15 home care agencies Clinics and outpatient facilities Three joint venture retirement centers (with a 4 th on the way) 18,000 employees

Transcript of The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue...

Page 1: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

The National Medicare RAC Summit The National Medicare RAC Summit Washington DC March 5-6 2009Washington DC March 5-6 2009

Embed the RAC Program in Your

Revenue Cycle Process

Page 2: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Adventist Health, Inc.

Not-for-profit, faith-based health care system

headquartered in Roseville, CA, just east of Sacramento

Affiliated with the Seventh-day Adventist Church

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Carol Richardson, MA, RHIA March 6 2009

Adventist Health, Inc. – Roseville, CA

California, Oregon, Washington and Hawaii

• 17 hospitals with 2800 beds – 13 in California• 110,188 admissions• 392,495 emergency department visits• 1,969,779 outpatient visits• 22 rural health clinics• 15 home care agencies• Clinics and outpatient facilities• Three joint venture retirement centers (with a 4th on the way)• 18,000 employees

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Carol Richardson, MA, RHIA March 6 2009

1 Corporate Office 2 Adventist Medical Center, Portland 3 Castle Medical Center 4 Central Valley General Hospital 5 Feather River Hospital 6 Glendale Adventist Medical Center 7 Hanford Community Medical Center 8 Howard Memorial Hospital 9 Redbud Community Hospital10 St. Helena Hospital11 San Joaquin Community Hospital12 Selma Community Hospital, Inc.13 Simi Valley Hospital14 Sonora Regional Medical Center15 South Coast Medical Center16 Tillamook County General Hospital17 Ukiah Valley Medical Center18 Walla Walla General Hospital19 White Memorial Medical Center

Adventist Health Site MapAdventist Health Site Map

Page 5: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Goal #1

Standardize management of RAC correspondence and payment denials across facilities

Identification Tracking Management Resolution

Our Vision – RAC DemonstrationOur Vision – RAC Demonstration

Page 6: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Goal #2

Establish coding audit of alleged coding errors and DRG changes

Select external coding vendor to perform all audits Implement process for facilities to provide data to

vendorRAC correspondenceCoding summary/abstractPhysician coding queryMedical recordUB92

Our Vision – RAC DemonstrationOur Vision – RAC Demonstration

Page 7: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Goal #2

Establish coding audit of alleged coding errors and DRG changes

Develop communication tools for vendor, facilities and Corporate

Vendor draft rebuttal correspondence Vendor and Corporate HIM jointly review audit

findings and rebuttal decisions on weekly conference calls

Our Vision – RAC DemonstrationOur Vision – RAC Demonstration

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Carol Richardson, MA, RHIA March 6 2009

Goal #3

Deliver coding education on RAC coding risk areas monthly

Vendor develop curriculum including case scenarios Coder pre- and post-testing

Track with AH/MC Strategies Learning Management System Issue certificates of attendance

Deliver seminar via WebEx Archived on Corporate HIM website on AH intranet

Our Vision – RAC DemonstrationOur Vision – RAC Demonstration

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Carol Richardson, MA, RHIA March 6 2009

04/06 – DRG 397, Coagulation Disorders

05/06 – DRG 217, Wound Debridement

06/06 – DRG 416, Septicemia

07/06 – DRG 468, Operating Procedure Not Related to Diagnosis

08/06 – DRG 124, Circulation Disorder

10/06 – DRG 478, Other Vascular Procedures

11/06 – DRG 475, Respiratory Diagnosis with Ventilator Support

12/06 – DRG 148, Major Small and Large Bowel Procedures

Coder Education Seminars Coder Education Seminars 20062006

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Carol Richardson, MA, RHIA March 6 2009

01/07 – DRG 76, Other Respiratory System Operating Room Procedures

01/07 – DRG 82, Respiratory Neoplasms

02/07 – DRG 141, Syncope and Collapse

03/07 – Principal Diagnoses with Complications & Comorbidities

04/07 – Principal Diagnoses with Complications & Comorbidities Case Studies

Coder Education Seminars Coder Education Seminars 20072007

Page 11: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

06/07 – DRG 193, Hepatobiliary Tract Procedure

07/07 – Operative Report Coding

08/07 – DRG 144, Other Circulatory System Diagnoses with Complications and Comorbidities

09/07 – DRG 415, Infections and Parasites

11/07 – DRG 174, Gastrointestinal Hemorrhage with Complications and Comorbidities

12/07 – DRG 296, Nutritional/Miscellaneous Metabolic Disorders

Coder Education SeminarsCoder Education Seminars 20072007 (continued) (continued)

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Carol Richardson, MA, RHIA March 6 2009

01/08 – MS-DRGs 190/191/192, COPD

02/08 – MS-DRGs 291/292/293, Heart Failure and Shock

03/08 – MS-DRGs 299/300/301, Peripheral Vascular Disease w CC

04/08 – MS-DRGs 579/580/581, Other Skin Subcu Tissue & Breast Procedures

05/08 – MS-DRGs 602/603, Cellulitis >17 yrs. w/o CC

06/08 – MS-DRGs 193/194/195 Simple Pneumonia & Pleurisy w/o CC

Coder Education Seminars Coder Education Seminars 20082008

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Carol Richardson, MA, RHIA March 6 2009

Goal #4

Implement system-wide RAC activity reporting tool

Locate on system intranet

Provide data entry access for facility RAC Coordinators Directors, Patient Financial Services

Capture 100% of RAC correspondence

Provide view access for facility and corporate administration

Our Vision – RAC DemonstrationOur Vision – RAC Demonstration

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Carol Richardson, MA, RHIA March 6 2009

Auto-populate data Enter account number, From claims file,

Medical record number DRG Discharge date Coder ID

Enter account number, From DRG tables specific to facility and year

DRG weight DRG payment

Enter account number, From remittance advice file, Date recouped Dollars recouped

Our Vision for the Data BaseOur Vision for the Data Base

Page 15: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Our Vision – RAC DemonstrationOur Vision – RAC Demonstration

Goal #4

Implement system-wide RAC activity reporting tool

Data aggregation by facility and across system

Facility Coder

Service Year Facility employee

Denial Reason Vendor

DRG Dollars Recouped

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Carol Richardson, MA, RHIA March 6 2009

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Carol Richardson, MA, RHIA March 6 2009

Page 18: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

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Carol Richardson, MA, RHIA March 6 2009

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Carol Richardson, MA, RHIA March 6 2009

Enterprise Government Payer Data Base

AH RAC Tracker Refine data fields Expand reporting functionalityRetrain workforce OR?

Better mousetrapInternal IT expense to bring internal data base up

to speed vs. expense of commercial product

Taking Advantage of the RAC PauseTaking Advantage of the RAC Pause

Page 21: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Taking Advantage of the RAC PauseTaking Advantage of the RAC Pause

Roll out standard, corporate policy and process for

RAC management

Facility Revenue Cycle Committee will monitor and direct RAC activity as a standard agenda item

Facilities will adopt best practices in RAC management

Page 22: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Standard Enterprise RAC Policy Identifies key stakeholders

Chief Financial OfficerHIM DirectorPatient Financial Services DirectorCase Management DirectorAncillary Department Directors

Requires designation of Corporate & facility RAC Coordinators

Taking Advantage of the RAC PauseTaking Advantage of the RAC Pause

Page 23: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Standard Enterprise RAC Policy

• Requires Facility & Corporate Revenue Cycle Committees to oversee RAC process

• RAC data base

• Correspondence, rebuttal and appeal workflow

• Denial-type action plans

• Staff education

• State/Regional hospital association RAC user groups

Taking Advantage of the RAC PauseTaking Advantage of the RAC Pause

Page 24: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Facility Revenue Cycle

Committee

HIM Director

Corporate RAC

Coordinator

Corporate Revenue Cycle

Committee

Facility RAC

Coordinator

PFS Director

CaseManagement

Director

ChiefFinancial

Officer

AncillaryDepartment

Directors

Enterprise Govt Payer Audit

Data Base

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Carol Richardson, MA, RHIA March 6 2009

Talk to Providers in the Demonstration Project Vendors and consultants know some things, but not all things

Do your homework “The Medicare Recovery Audit Contractor (RAC) Program – An Evaluation

of the 3-Year Demonstration – June 2008” http://www.cms.hhs.gov/RAC/Downloads/RAC%20Evaluation%20Report.pdf

“Statement of Work for the Recovery Audit Contractor Program November 7, 2007” https://www.fbo.gov/download/f8f/f8f1d845d960c3229301aeec334c7eb4/2_J-1RACSOW11-5-07VS2(3).doc

RAC Best PracticesRAC Best Practices

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Carol Richardson, MA, RHIA March 6 2009

RAC Best PracticesRAC Best Practices

Budget for RAC management FTE

Outsourced Coding and Medical Necessity review

Coder and Case Management education

Adequate Release of Information manhours in HIM

Counsel support in Formal Medicare Appeal Process

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Carol Richardson, MA, RHIA March 6 2009

Re-Evaluate your Release of Information Solution How tight is the current turnaround? What accuracy rate is reported by your Quality Control

process? Internal vs. Outsourced?

If you outsource, consider a penalty against the invoice for any late or inaccurate RAC response

If you’re considering outsourcing, some vendors are able to incorporate document imaging which supports the rebuttal and appeal process

Track every piece of RAC Correspondence

Name and empower the RAC Coordinator position

Direct Revenue Cycle Committee to monitor RAC activity

RAC Best PracticesRAC Best Practices

Page 28: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

RAC Best PracticesRAC Best Practices Require all Coders to be Credentialed

Outsource Coding and Case Management audit

Tighten Up Coding Vendor Contracts Add penalty against invoice for retroactive payment denials

Tighten Up & Expand Physician Coding Query Process

Require that physicians be queried per AHIMA guidelines Track and monitor query trends by physician, code/DRG

and coder Add pending queries to Medical Staff Bylaws, Rules and

Regulations definition of incomplete/delinquent medical record

Page 29: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Meet every deadline - NO TECHNICAL DENIALS!

Send ALL the RIGHT stuff the FIRST time

Hold the RAC accountable

ProcessesTimelines as defined by CMSCommunication

RAC Best PracticesRAC Best Practices

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Carol Richardson, MA, RHIA March 6 2009

RAC Best PracticesRAC Best Practices

Rebut initial RAC decisions as appropriate

Pursue formal Medicare appeals as appropriate

Educate CodersCase Managers/Utilization Review

Network with and through hospital association

Page 31: The National Medicare RAC Summit Washington DC March 5-6 2009 Embed the RAC Program in Your Revenue Cycle Process.

Carol Richardson, MA, RHIA March 6 2009

Carol Richardson, MA, RHIA

Corporate Director, Health Information ManagementAdventist Health, Inc.

2100 Douglas BoulevardRoseville, California 95661

[email protected]