HCM 302

1. Financial Managementin the Healthcare Industry Week V HCM 302

2. - Group Project • Class work 35min • - HC Youtube • - Practice Test • - Hospital Privileges • - Stark versus Antikickback • - Break-Even Analysis Week V Outline

3. Group Project 02/16/2012 HCM 302

4. 1- Dana • 3- Deja • 2-Theresa 4- Nancy • Medical Practice Name: Women’s Specialty Care • Details : • Specialty: OB-GYN • # Of Employees: 10 • # Of Physicians: 6 • # Of PA's :2 • # Of MW‘s: 2 •   # Of Offices: 3 • # Org Type: C-Corp Group A

5. 1- Diana • 3- Hana • 2- Devon 4- Cailin • Medical Practice Name: Community Care of New Castle County • Details : • Specialty: Family Medicine • # Of Employees: 14 • # Of Physicians: 9 • # Of PA's :3 • # Of NP‘s: 3 •   # Of Offices: 2 • # Org Type: LLC Group B

6. 1- Natalia • 3- Irene • 2-Norberto 4- Alyssa • Medical Practice Name: Pediatric Physician Care • Details : • Specialty: Pediatric • # Of Employees: 10 • # Of Physicians: 6 • # Of PA's :2 • # Of MW‘s: 2 •   # Of Offices: 3 • # Org Type: C-Corp Group C

7. 1) Mission statement • 2) Sample contracts for physicians • 3) Hiring of other office staff – LPNs/medical assistant/accountants/receptionist • 4) Contracts with hospitals • 5) Hospital privileges • 6) Insurance Credentialing • 7) Cell phones/pagers for physicians • 8) Contract with office space (rent/buy) • 9) Scheduling • 10) Plan for how to grow patient base/how to receive more patients from local PCPs • Uninsured/unassigned/PCPs • PCPs in Southern Delaware that still do not utilize hospitalists to the extent of Christiana area • 11) Retention strategy • 12) Flow charts for structure of organization • 13) Use specific dates for process; especially with hospital privileges and/or credentialing • 14) Website Week IV & V

8. Hospital Privileges 02/16/2012 HCM 302

9. Physicians are allowed to admit unlimited number of patients to the hospital. Physicians are usually given all the privileges needed to perform ‘core procedures’ of their medical specialty. Physicians are also required to attend a required number of medical staff meeting regularly. Full Privileges:

10. Courtesy hospital privileges limit the physician to admitting only a nominal number of patients to the hospital. It still satisfies most medical insurance companies requirement for physicians to hold hospital privileges. Physicians are usually exempt from attending medical staff meetings. Such privilege is used by physicians who do not expect to admit patients to the hospital or do procedures there. Courtesy Privileges

11. - Call the ‘medical staff office’ of the hospital and get a privilege application. - Fill and Submit it back to the medical staff office. - Follow up with your references to make sure they mailed the recommendations back to the hospital. - Make sure medical office has everything they need on your file, prior to the next credentialing committee meeting. Privileges steps

12. Stark versus Antikickback 02/16/2012 HCM 302

13. -both laws cover similar ground, -an arrangement that is acceptable under one of these statutes could violate the other. -Both the antikickback statute and the Stark law were enacted to prevent healthcare providers from inappropriately profiting from referrals. - These laws are intended to ensure physician’ medical judgments are not compromised by improper financial incentives and are based solely on the best interests of the patients understanding the difference between the Federal antikickback and Stark law)

14. understanding the difference between the Federal antikickback and Stark law) • -the antikickback statute is a criminal statute. • -the statute prohibits any knowing or willful solicitation or acceptance of any type of remuneration to induce referrals for health services that are reimbursable by the Federal government. • -Example, • -a provider may not routinely waive a patient's co-payment or deductible. • -the Stark law is a civil statute • -the Stark law essentially provides that a physician may not refer a patient to an entity with which the physician has an ownership interest or compensation arrangement if payments for the services furnished under the referral are to be made by the Medicare or Medicaid programs. • -Unlike the antikickback statute, the Stark law prohibits referrals for specific "designated health services

15. - Clinical laboratory services - Physical therapy - Occupational therapy - Radiology services including magnetic resonance imaging, computerized axial tomography scans, and ultrasound services - Radiation therapy services and supplies - Durable medical equipment and supplies - Parenteral and enteral nutrients, equipment, and supplies - Prosthetics, orthotics, and prosthetic devices and supplies - Home health services - Outpatient prescription drugs - Inpatient and outpatient hospital services Designated health services

16. Healthcare finance professionals need to ensure that all business transactions comply with the antikickback statute and the Stark law Sometimes, it is relatively easy to discern whether a transaction is a violation. For example, a vendor offering free tickets to the Super Bowl to a provider in anticipation of future product referrals is in blatant violation of the antikickback statute, whereas a hospital offering free compliance training to physicians with privileges at the hospital probably would not be in violation of the statute, depending upon how the training is structured. A clear Stark violation would be a physician referring patients for treatment to his or her spouse. Examples

17. 2010 Fraud Allegations against Christiana Care Health SystemCase StudyUnited States ex rel. v. Neurology Associates, P.A. and Christiana Care Health System

18. In February of 1989 Christiana Care entered into an “evergreen” contract with Neurology Associates Neurology Associates, P.A. was paid by CCHS for providing, on an exclusive basis, interpretations of EEGs Events Leading up to Lawsuit

19. In 2002, other practices competed with Neurology Associates to be the exclusive provider of EEG interpretations for CCHS CCHS decided to stay with Neurology Associates, and entered a contract that significantly lowered the fees CCHS paid for the EEG interpretations Events Leading up to Lawsuit

20. In April of 2005 a “qui tam” action was filed by a competing neurology group, Wilmington Neurology Consultants In qui tam lawsuits, private individuals who assist a prosecution can receive all or part of any penalty imposed They had inside information that CCHS was violating the federal and state False Claims Act, the Physician Self-Referral Law, and the federal and state Anti-Kickback Statute Lawsuit

21. Law that allows people who are not affiliated with the government to file actions against federal contractors they accuse of committing claims fraud against the government • Act of filing such actions is called “whistleblowing” and person typically receives a portion of recovered damages • CCHS allegedly violated the False Claims Act by overpaying physicians at Neurology Associates for in-hospital readings of EEG as a “reward” for referring patients to the hospital False Claims Act

22. Also known as the Stark Statue; prohibits a hospital from profiting from referrals of patients made by a physician with whom the hospital has an improper financial relationship Contract was given to Neurology Associates and in return physicians were referring patients to Christiana Care Physician Self-Referral Law

23. Very similar to the Stark Statute; prohibits a hospital from paying a physician to induce the physician to make referrals to the hospital Christiana Care receives reimbursements from Medicare and Medicaid for services rendered in their facilities CCHS paid Neurology Associates P.A. significantly more (in some cases multiples) than the amount Medicare & Medicaid was paying CCHS for those services Anti-Kickback Statute

24. Never admitted to any wrongdoing in this case • The case alleged that Christiana Care overpaid a medical group for services • Never any allegation that CCHS was billing for services that it did not provide or that it was billing for services that were not medically necessary • Patient care was not compromised in any way Response from Christiana Care

25. Out of court settlement of 3.3 million dollars to the United States & the state of Delaware • Whistleblowers were awarded $190,000 in settlement Ramifications

26. Christiana Care entered into a Corporate Integrity Agreement that is monitored by: • Office of Inspector General of the US Department of Health and Human Services • United States Attorney for the District of Delaware, David Weiss • Delaware Attorney General, Beau Biden Ramifications

27. Break-Even Analysis 02/16/2012 HCM 302

28. The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point. What is break-even?

30. These are costs that are the same regardless of how many items you sell. All start-up costs, such as rent, insurance and computers, are considered fixed costs. Fixed Cost

31. These are recurring costs that you absorb with each unit/service you produce. Variable cost

32. Break-Even

35. EMR ROI 02/16/2012 HCM 302

36. RETURN ON INVESTMENT SUMMARY

37. PAPER VERSUS EMR EMR = With Standardized Coding X Efficiency Paper = Prior to EMR Differential = EMR - Paper