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2. 2 Mediationof PRRB Appeals “Life is very short,
And there’s no time
For fussing and fighting my friend. . .
We can work it out.”
The Beatles, circa 1966
3. 3 Why Is PRRB Using Mediation?
3 years from appeal to hearing & up to 1 year for a decision to be issued
90% of cases settle before a hearing & 85% of those settle DAYS before scheduled hearing
4. 4 What kinds of cases will benefit from mediation?
Issues involving factual disputes
Owner’s compensation
Related party
Allocation of costs/time studies
Establishment of non-reimbursable cost center vs an A-5 or A-8 adjustment
Distinct part
Interest expense
5. 5 Issues not appropriate for mediation
Strictly legal issues
CMS Policy
CMS Regional office policy
Political
6. 6 Will Board still require Position Papers (Final & Prelim)? If both parties agree to mediate-No Prelim or final position papers. Dates on hold, pending outcome of mediation
Only 1-2 page issue summaries required
If mediation unsuccessful-no prelim...go right to final
Don’t request mediation to avoid position paper due dates
7. 7 Who will conduct the mediation?
Office of Hearings Co-Mediators (not Board members)
Provider owner-Attorney-Reimbursement consultant
FI Rep.--auditor may be in attendance
Someone on both sides with authority to settle at table
8. 8 Advantages of Mediation It helps establish a current and future relationship between FI & Provider
Parties at table are immensely familiar with case/provider
Parties at the table participate in drafting a resolution rather than 5 individuals removed making a win/lose decision
9. 9 Advantages of Mediation Non-binding
No position papers
Usually have revised NPR & $ within 180 days
FI does not need BSBCA (Chicago) approval for mediation resolution (unlike non-mediated administration resolution)
10. 10 Advantages of Mediation Funds not tied up for years
Costly position papers eliminated
Speedy hearing if not successful
Conducted at Intermediary
site
11. 11 If mediation is unsuccessful orFI’s offer is minimal Remember, right now parties at table in control of outcome
Some of the issues get resolved; others may go forward to Board
Parties now have a better understanding of each others position
Board will not know the parties positions/strengths
12. 12 What mediation is not Arbitration or win/lose
No deals
No 50/50
No precedent for future
Not precedent for other providers
13. 13 TipsHow to Prepare Provider and Intermediary should BOTH screen the issues & request mediation BEFORE position papers are written
Some Providers request mediation at the same time appeal is filed
14. 14 TipsHow to Prepare Suggest mediating Only the important issue-Don’t scare the FI away with numerous “throw away” adjustments (some cases have 100+ adjs.)
Representation-Have decision maker at mediation session; owner, attorney, reimbursement specialist
15. 15 TipsHow to Prepare FI & Mediators KNOW what Providers’ WANT…. before you get to table, know what you NEED
Providers should know reimbursement impact of modifying/giving up Adjustments
Be prepared to give up some adjustments in exchange for FI reversing/modifying adjustments
16. 16 TipsHow to Prepare
Provide documentation to Intermediary WELL in ADVANCE of mediation
Do your own surveys/gather state/local/association info to support your argument
Provider has show the FI how to get to what it NEEDS
17. 17 TipsHow to Prepare
Have boiler plate of settlement agreement done ahead of time so parties can sign at table
Be prepared to leave “a little unhappy” --Successful if settlement agreement is reached and both parties leave a little unhappy
18. 18 Decision to go forward with the Appeal Win at Board
Reversal by HCFA Adm.
District/circuit court
3-5 years
Deep pockets
19. 19 Final Thought Mediation is gaining popularity
Provider’s have nothing to lose
If Intermediary agrees to mediate, it usually means a willingness to reverse/modify some/all adjustments