Posts Tagged ‘chiropractic compliance’

Random Thoughts Episode #136: Chiropractic Audits, Business Building & Success

by Tom Necela on July 20th, 2010 in Audits, Billing, Business, Chiropractic Audits, Coding, Collections, Documentation, Medicare, chiropractic billing, chiropractic business, chiropractic coding, chiropractic collections, chiropractic documentation, compliance

Reading time: 5 – 8 minutes

I’m on the road for the next couple weeks traveling for a number of on-site consultations with clients so this blog post will be a summary of random thoughts on the most common questions that repeatedly brought to my e-mail inbox.

1)  Chiropractic Audits: a few months ago I received a lovely piece of hate mail to accuse me of trying to disproportionately scare well intentioned, upstanding chiropractors in regards to the possibility of an audit. My latest “tweet” included a post to the most recent findings from Medicare reviews for the states of Nevada and Hawaii.  In those two states, chiropractic documentation failed to meet requirements 60 to 70% of the time.  Similar posts from other review results in the past were even higher than that and OIG reports even higher still.

I might not be the greatest mathematician, but it seems to me that the majority of chiropractors are not scared enough!  If 60%+ of chiropractic documentation is substandard, that means most of you are in trouble or headed down the wrong road. It’s not a great picture for me either.  There are roughly 50,000 chiropractors in the United States, so that it would be physically impossible for me to help roughly 30,000 of you get your documentation in order, teach you proper billing and coding, or come to your assistance in the case of an audit.  I wish that I would live long enough to be able to help, but with those numbers, some of you are just going to have to suffer the consequences.

For those of you who think slightly more highly of me or take the potential of audits more seriously, now is the time to take action. It is obvious to all that audits are a big business for not only cash-starved government entities like Medicare, but also for insurance companies looking to expand profits by taking your money back.  The audit numbers and amounts recovered in post-payment demands are so large that they are virtually beyond comprehension for the average chiropractor.

Since I don’t know most of you personally nor do I care to manipulate the facts to scare you, let me just share a few recent scenarios that came by my desk.

Chiropractic Audit case #1:  Medicare audit, six patient, 94% error rate determined; post-payment demands made for 18 months (legal limit for that state).   Total bill amounts to only a little over $2000.  Big pain in the patootie is that this doc failed a previous audit and now has to submit all claims for “pre-payment review” which means that Medicare doesn’t pay him a dime until they receive and approve all notes and every treatment.

Chiropractic Audit case #2:  Auto insurance carrier, handful of patients who were treated for the last 3 yrs on claim (bad state, no limitations statute).  Total repayment demand is approx $56,000. Legal expenses totalled $8000 so far.  Doctor may also face civil fines.

Chiropractic Audit case #3: Commercial insurance.  Re-payment demands made by insurance company after extrapolation (process of configuring an error rate to apply across the board).  Demand total was close to $95,000.  Insurance in error on reviews in some instances and doctor’s repayment will be significantly less, but she will still have to re-pay. Doctor will likely be kicked off insurance provider list as well. Legal fees approximately $17,000.

Maybe this is all chump change to you and you have a life of leisure that can afford the time and hassle it takes to wrestle with the insurance companies, hire attorneys and formulate your audit defense. The rest of you, take note.

2)  Business Building:  Don’t chase your customers or patients. Find out where they are going and get yourself or your information in front of them.  This simple advice (not mine but I can’t remember who I heard it from) is full of wisdom and potential applications.  For example, people who are sick or hurting often go to the medical doctor.  How can you get the MD to route them toward your office?  Most people work.  Which of your patients has a position in human resources or is the owner of a small business with a fair number of employees?  Rather than try to come up with some fancy high-powered presentation that you will likely work on for the next four years until you’ve whittled it to perfection, why don’t you just approach people who already know and trust you as patients and see if they can help you make inroads into their company?  People surf the Internet. First off, that means you need to have a website too.  While the chances of catching random visitors that become patients are slim, but you can stack the deck and give them a reason to come to your site by writing articles, posting videos, and providing other informative content for your community.

Obviously if you are busy enough, you may not need to employ any or even all of these strategies. But for the rest of you, instead of spending time surfing the net do something tangible to improve your web presence. Rather than whining that referrals are down, take a concrete step towards leveraging your patient relationships to increase your referrals on your patience. Instead of sitting in your office hoping patients will come to you, reach out to where they are and bring them in.

3)  Success.  Keep in mind that your business should be there to serve you and not vice versa. I’ve run into too many chiropractors whose primary purpose seems to be providing jobs for their employees. Worse, I’ve seen too more “successful” chiropractors whose drive to succeed left their spouses, children, health and sanity by the side of the road.  A few fortunate ones can come back and retrieve it. But for many once these items are lost, they are gone forever.  Take a day off and go play while the weather is nice.  Spend the afternoon with your children, the evening with your spouse.  Your bank account may not look immediately better for it, but in the long run it is cheaper to stay married, stay healthy, stay sane and not have to pay for years of therapy for your screwed up kids!

As for me, I intend to practice what I preach both working and playing.  If you have an Audit or business issue to discuss, feel free to drop me an email. That’s the beauty of the internet, it can be checked anywhere.  On the other hand, if you see a bald man not acting his age on a wakeboard at a lake near you, it just might be me :-)

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National Legislative Changes (or Non-Changes) Affecting Chiropractors

by Tom Necela on June 1st, 2010 in Business, Collections, Medicare, chiropractic business, compliance

Reading time: 2 – 4 minutes

Changes_next_exit

In case you haven’t heard, two recent legislative changes have been passed that will affect you as a chiropractor:

Because these changes (or non-changes) happen quickly, I typically alert chiropractors of these via my Twitter page. But for a change of pace and because I know 14, 238 of you reading this are NOT following me on Twitter I thought it might be useful here as well.

(BTW: If you are on Twitter, no worries. I won’t send you tweets about what a great lunch I am eating or give you my reaction to the latest celebrity gossip in 140 characters or less.  If you are not on Twitter, it’s a quick way to stay updated on changes in chiropractic that you need to know. Plus, as a special bonus, you can re-tweet them (sort of like an email forward without the bad jokes) to friends and impress them with you ability to stay in the know on current events!)

So, here’s the news:

Medicare Fee Decrease

The long-anticipated (dreaded?) 21% Medicare fee decrease is scheduled to go into effect June 1, 2010.  While hopes have been high for a delay, no final Congressional action has yet been taken.

Medicare recently released a notice indicating that they would hold claims for the first ten business days of June to provide Congress with additional time to consider this issue.

Chiropractors should be aware that this hold will only affect claims with dates of service June 1, 2010, and forward.

Claims paid prior to June 1 should still be paid at the zero percent (0%) fee increase proposed by other recent legislative activity.  Translation: claims paid with dates of service Jan 1 through May 31 will be paid at the same fee schedule as your 2009 rates.

Red Flag Rules Delayed

Again, the Federal Trade Commission (FTC) has delayed implementation of the Red Flags Rule. The next date is set for January 1, 2011.  Although it has been a subject of much debate whether this ruling even applies to chiropractors, no worries – you still have time.  Meanwhile, Congress intends to determine the scope of entities who are covered by the rule. We will just have to wait and see how that turns out.

Hope you had a great holiday weekend!

I will be back next week with my usual fare of musings on all things related to the business of chiropractic.

Tom

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The Best of…Strategic Chiropractor Blog Flashbacks

by Tom Necela on May 10th, 2010 in Audits, Billing, Business, Chiropractic Audits, Coding, Collections, Documentation, HIPAA, Medicare, Medicare ABN, OIG Report, Politics, chiropractic billing, chiropractic business, chiropractic coding, chiropractic collections, chiropractic documentation, chiropractic practice management, compliance

Reading time: 1 – 2 minutes

flashback

In business and in life, it is helpful to go back and review the basics, to take a look at where you’ve been and where you want to go.

Today’s blog post feature’s 3 links to our most popular columns of the past – in case you missed them – or in case you need “a refresher course.”  (pardon the Fletch reference)

Here they are (in no apparent order):

Enjoy!

Tom Necela, DC, CPC, CPMA

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Chiropractic Audits — What To Do When You Receive THE Letter!

by Tom Necela on April 19th, 2010 in Audits, Business, Chiropractic Audits, Documentation, compliance

Reading time: 4 – 6 minutes

42-17679037

  • Don’t Panic and Don’t Ignore It! An audit letter is not an automatic presumption of guilt.  Some audits are completely random and conducted routinely with no suspicion cast toward your billing activities, documentation ability or treatment parameters. So do not panic in the presence of an audit letter. Don’t assume that your documentation is substandard. Don’t automatically determine they will find your records insufficient and make plans to be subversive.  On the other hand, do not ignore the audit letter.  Instead, plan to take action.
  • Can I even be audited?  You do have legal rights depending on the state in which you practice and your specific situation. For example, if you are an out of network provider, there is a possibility that the carrier cannot audit unless they suspect fraud.  On the other hand a governmental entity like Medicare definitely can audit you, so move on to the next step.  Perform your due diligence immediately and research this issue.
  • Determine exactly what the audit letter states. Are they requesting a chart audit where they want to look at your medical records?  Do they want to perform a site visit?  Once you’ve determined which type of audit they’re intending to conduct on your practice, you need to formulate response to that audit or to the request that the audit’s making in a timely manner.  In some types of audits, no answer is the worst possible answer you could give.  So you want to respond in a timely manner to the request for the audit.  Also, provide what is requested: nothing more, nothing less.  The auditors do not want to review a 42 page explanation of your chart notes; they should stand for themselves.  Furthermore, any additional material you provide beyond what is requested can be used against you as well.  One tip: do not respond to phone or fax audit requests.  Get it in writing!

  • Do Not Alter Your Documentation. I get many emails and calls from chiropractors who have received an audit letter.  The most common question is: “what do I need to do to prepare for this audit?” To be blunt: the time to prepare for your audit is not when an audit request letter is in your hands! Never take matters into your own hands and alter medical records to improve what appears to be incomplete or insufficient documentation. Poorly done records are still better than the best records that have been fraudulently contrived.
  • Determine IF You Can Meet Audit Requests.  If the time frame that the carrier is requesting is not reasonable due to some sort of extenuating circumstances, contact the auditor for an extension.  If it’s going to take you more time to produce the information, ask for an extension.
  • Is this something we need to appeal immediately? If your “audit” letter is actually a demand for repayment, your best option may be to start the appeals process.  Do not automatically presume that the payor’s review is final or even correct.  If appropriate, an appeal can save you thousands of dollars in unnecessary repayments and headaches.

  • Is this something for which you will experienced assistance? You may need to obtain the assistance of a certified professional coder or a certified professional medical auditor whose expertise is in chiropractic (such as myself) to help defend you.  A healthcare attorney may also be wise, especially if there are several zeros in your demand or repayment letter. Again, before you hit the panic button or get out your checkbook, it may be critical to the success of your defense or appeal to get professional help.  The reality is that your license, your lifestyle and your livelihood may all depend on it!

I hope that you found this article helpful.  For a more detailed discussion on audits, I suggest you check out my program “How to Prepare Your Chiropractic Practice For Recovery Audits.”  For specific questions regarding your own audit situation or letter, you may contact me per the guidelines below.

Due to the large volume of requests that I receive for audit advice, opinions and requests from chiropractors to “look this over and tell me what this means,” I can no longer respond to phone inquiries on this matter.  If you have need for an opinion or objective discussion on audits or demand letters, the need for attorney/ legal representation or appeals, please contact me via a separate email for this purpose at Audits[at]StrategicDC.com.

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Chiropractic Compliance Concerns, HIPAA Hassles and Practitioner Paranoia

by Tom Necela on March 9th, 2010 in Audits, Business, HIPAA, compliance

Reading time: 6 – 10 minutes

hipaa compliance

Just in case you were actually focusing on your practice and not glued to the news, HIPAA television and the endless assault of compliance related emails that cross your desk, we had three significant deadlines in February that seem to have rattled a significant number of you.

Even though I may not know you personally, I am going to extend you the grace of assuming that you are not normally paranoid, panicky or otherwise possessive of a peculiar tendency to “snap” when confronted with the politics of change that besets our profession.

So, let me first gently remind you of the deadlines of which you may or may not be aware.  And then, I’d like to put your mind at ease over a few items that repeatedly hit my email inbox and drip with panic-driven sweat and media-fueled fear.

The Deadlines

  • New requirements for “Business Associates” – Deadline: February 17, 2010 HIPAA rules were strengthened by extending the responsibility for protection of PHI to “Business Associates.” Under the new law, the “Business Associates” have the same responsibilities for any breach of private health care information as do the provider of the services. “Business Associates” would include Attorneys, Consultants, Accountants, Third-Party Billing Companies, Computer Vendors or maintenance companies, etc. For a more detailed description of this requirement, see my previous blog entry on “Mandatory HIPAA Updates.”

  • Disclosure Agreement Provision – Effective: February 18, 2010
    Patients have the right to pay in full for out of pocket expenses for health care services and request that your practice not disclose his or her medical information to a health plan or other entity. Your practice must comply with this request. Make sure that all your employees are informed about this provision and modify notification or follow-up procedures where applicable. This is information that will have to be shared with all employees in the medical practice that is involved in health information and insurance processing.  This one is not likely to happen too often, but regardless, you are still required to follow the rules should it occur.  Essentially, if you have a patient that is under- or non-insured and pay for services in cash (or credit card, check), they have the right for their info to remain silent.
  • Information Breach Notification – Effective February 22, 2010
    New provision requiring that HIPAA covered entities such as physicians notify patients (and Business Associates notify the partnering entity) of any breach of health care information. If a breach involves 500 people or less, the responsible party must notify each affected individual by written notice. This notice must contain the details of the breach, the information disclosed, and the steps being taken by the practice or entity to avoid any future breaches, as well as explaining the rights of the patient(s) in protecting their private healthcare information. If the breach involves more than 500 persons, the Act requires that the Department of Health and Human Services be notified as well as the local media outlets.  Hopefully, this one will never happen, but you should be aware that if it does, there are required steps to take.

The Reality of the Situation

Of those three new HIPAA requirements, I do not see any as the reason to hit the panic button.  Rather, get your Business Agreement in place and train the staff on the other two, should the need ever arise.

As for other recent news affecting our practice (and for which I received a lot of email),  the President did signed into law a bill that delays Medicare Fee cuts until March 31, 2010.  Hopefully, this delay will be prolonged at least until 2099 or until the government gets its Medicare act together, in which case the 2099 date may happen first.  On this item, continue to make your voice known through your state and national associations and hope that we make enough collective noise to stop the feds from cutting our paychecks.

Again, no need for panic, but action may be helpful.

Some FAQs About Chiropractic Compliance Measures

The one interesting byproduct of chiropractors who begin to get their compliance act in gear is that more questions begin popping up over everyday matters.   Suddenly, policies and procedures they have utilized for years become the subject of much questioning, much needed revision and, in some cases, not so needed fear.

To set the record straight, here are a few items that I would like to clarify for you so that you can fully understand your responsibilities and which side of the compliance fence that you stand.

  • Q. Our practice confirms patients’ insurance coverage by contacting their health plans the day before their appointments to verify coverage and patients’ financial responsibility. Do we need their consent or authorization to contact their health plan? A. Patient consent or authorization is not necessary to disclose PHI for coordination of benefits, which is considered part of your treatment.  Per HIPAA [45 CFR | 164.501] the full definition of treatment includes: “the provision, coordination or management of health care and related services by one or more health care providers, including the coordination or management with a third party
  • Q:        Are sign-in sheets or calling out the next patient’s name in the waiting room – allowed or not allowed? A: Yes, they are allowed. Believe it or not, if you actually sit down and read through the HIPAA regulations (sick and twisted) one of the intentions behind HIPAA that you will repeatedly see mentioned is “administrative simplification.”  To this extent these activities result in other people learning a patient’s name or other information, the disclosure would be considered “incidental” to your of the patient, and therefore acceptable under HIPAA.  (7.6.2001, OCR HIPAA Privacy TA 164.000.001 FAQ) Chiropractors should still take appropriate precautions to limit the amount of information that might be incidentally disclosed in this manner. For example, you may not want to ask patients to list “reason for visit” on a sign-in sheet. With respect to placing charts outside of your adjusting rooms, you should take precautions such as turning the front of the chart towards the wall so others do not have the opportunity to read the front page while walking past the room.
  • Q:  What about billing electronically, EMR and all these new proposed regulations? Am I going to be required to do all of this? A:  While it may make sense for many individuals to move as much as their practice as possible to an electronic format, you have two reasons to rest easy.  1)  Several proposed requirements for electronic communications are still in the future and so there dates may be delayed or never quite arrive.  2) You may be an exception to the rule anyway.  For example, back in 2003, providers were supposed to be required to bill Medicare electronically.  However, this requirement does not affect many chiropractors, as there are exceptions to physicians with fewer than 10 full-time employees. [42 USC | 1395y(h)]

Keep informed so that you know what you are required to do, but don’t get paranoid. Focus on your practice and your patients. Sleep easy.

Best wishes for continued success!

Tom Necela, DC


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Correcting Chiropractic Billing Snafus, Altering Records & Advice from Bob

by Tom Necela on February 22nd, 2010 in Audits, Billing, Documentation, EHR / EMR, chiropractic documentation, compliance

Reading time: 8 – 12 minutes

altering records

In the wake of insurance denials, some chiropractors pose an interesting question in their attempt to get paid for what they do.  It is some variation of this:

“If I billed something incorrectly…or the insurance company denied a particular service…or procedure A was bundled with procedure B…can I change my records/billing/coding so I can get paid for this?”

Certainly, my loyal blog readers know that one of the two primary purposes of my writing this column is (1) to help you maximize reimbursements by getting you paid for ALL the work you do.  But this purpose is also coupled with keeping you compliant in your billing, coding and documentation while attempting to achieve my other goal for you, which is (2) to minimize your audit risk.

In other words, I would love to see every chiropractor paid well for all of the work they do (not more than they deserve, but not less) and, of equal importance, possess the proper documentation necessary to KEEP the money they earned.

Answering the question(s) posed then is not a simple “yes” or “no” but an “it depends.” Let’s explore this a little further.

Amendment of Records Can Be a Good Thing

Amendment of a medical record can be a good thing. Reviewing your records to check for accuracy and completeness and taking the time to amend them is common and commendable. We all know that the daily duties and pace of practice often cause us to spend less time taking notes that we may want to or that good documentation may warrant.  Therefore, a practice of reviewing notes before the day’s end, for example, can be a good way to catch any missed items needing documentation as well as prevent incorrectly billed or coded services.

Obviously, the best practice is to complete your records correctly the first time. But if you didn’t, you can make an addition or correction later. You must do so in a legitimate and above-board fashion—timely and not apparently an “alteration.” Different payers may have varying definitions of what constitutes “timely” documentation, but most appear to indicate that the note should be completed during the actual encounter of shortly thereafter.  Most payer descriptions I have seen of this seem to indicate “shortly thereafter” means within 24hours after treatment.

Avoid Alteration of Records

Let’s differentiate between the terms: “Amendment” or “Alteration.”  For our discussion, Amendment refers to the process of reviewing and/or correcting mistakes within a short period of time (as above) for the purposes of correction.  Alteration, on the other hand, does not quite convey the same corrective intent.

For example, if you alter your records once a lawsuit has been filed or an attorney has requested your records, it’s too late and this would not be considered a legitimate “correction” or amendment of the patient’s file.

Unfortunately, this is a common scenario: you receive a request for records, review your documentation, and see that some fact is omitted or some entry is inaccurate. You quite innocently think that you can “improve” the record.

Let me stop you there. Don’t do it.

Every state chiropractic board in the country has heard numerous cases of records alteration and, I am sure, cringes every time they have to review one.

In reality, the insurance company, plaintiff’s attorney, claim review company and who knows who else has likely already obtained a copy of your records in their original form. As the jury is shown both the original record and your “revised” record, you will see your credibility disappear before their eyes – even if the alteration of the record was innocent, helpful or minor.

At the least, any alterations you make in the records significantly after the treatment date can be viewed as self-serving. Taken to the extremes, it can also be regarded as a cover-up or potential fraud.  (See picture at start of blog for what technology can do to squash your attempts to alter records anyway!)

Adding To or Correcting Records

What should you do if you discover an omission? Suppose you review your earlier progress note and discover that you forgot to state that you made an appointment for a patient x-ray? Or what if you reviewed the x-rays and in the process of documenting your findings, inadvertently left a key finding out of your report?

Sometimes, omissions may not have clinical relevance but are needed for accuracy. For example what do you do when you discover that a simple typing error has made your 26 year old patient 62 years old?

In cases like these, adding a note can illustrate the fact that you are a conscientious chiropractor by demonstrating that you are careful enough to review your notes and concerned enough to add the missing information.

To properly amend records, you need to:

  • Put a notation in the margin next to the original entry: “see my note below.”
  • Enter another note at the time you discover the error. Write in the added information. Initial and date it.
  • Draw a single line through the incorrect entry. Make sure that the original entry is still legible.
  • Explain the correction. If possible, explain why the earlier note was incorrect, the reason for the error, and the reason the error was noticed.

On the other hand, erasing, using correction tape or fluid, or obliterating any documentation in the record is unacceptable and would be a big no-no that can land your tail in hot water.

Billing Snafus

Many chiropractors contact me – after the fact – about their claim denials, payment disputes or billing problems which may have occurred as a result of errors or ignorance.  Some of these problems are correctable.

If you legitimately performed a procedure, documented it correctly and simply forgot to bill for the procedure alongside the other services that were rendered during that visit, you may wish to submit a corrected claim and get reimbursed for this.  Provided you do this in a timely manner, the insurance should reprocess the claim and pay for your for the service.

Similarly, if an insurance company has denied your service based on a claim submitted with the wrong code on it (due to a human error, mistake, number dyslexia, etc), re-submit your claim for payment consideration.  In these instances, I find a short letter submitted with the corrected claim to be helpful. (i.e.  Dear Sirs,  I inadvertently billed for 58940 instead of a 98940.  There was no Oopherectomy performed, in part or total, during the course of the patient’s chiropractic visit nor was it my intention to attempt to get paid for one.  The service performed was…)

Some billing problems, however, should not be corrected.

For example, adjusting 3-4 areas of the spine (98941) and performing manual therapy (97140) in one of those same areas won’t fly with payers and will result in a denial.  If you have billed this out and find a rejection letter staring you in the face, you should not downcode your service to a 98940, re-bill it and hope to be paid for your “corrected claim.”

Presuming you did adjust three or four areas in the first place, it would be fraudulent to downcode because you are essentially lying to get paid.  Again, take your lumps and correct the issue.

Likewise, if you bill for a service only to find it denied, you should not re-submit the claim using a different code in an attempt to get paid.  Look in any coding book, page 1 or thereabouts and you will see instructions that read something like “Select the name of the procedure of service that most accurately identifies the service performed.”

Spaghetti billing methods (throw it to the wall, see what gets paid/sticks) are not advisable, inefficient and potentially fraudulent.

Parting Words of Wisdom…From Bob

So what do you do if you have a billing problem that causes you to lose money, but which you cannot correct if you wish to keep your nose clean?

  1. Identify and research the issue so that you can understand the problem.
  2. Seek experienced help.  Billing and coding errors rarely occur in isolation.  Typically, I find multiple errors that are costing my clients thousands of dollars in unrealized income or potential losses.
  3. For future purposes, and on the lighter side, see Bob Newhart’s classic advice on the matter below.  A little on the rough side, but technically accurate!  J

To Your Success!

Tom Necela, DC, CPC, CPMA

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Mandatory HIPAA Update Required by 2/17/2010 for Chiropractors!

by Tom Necela on February 9th, 2010 in Audits, HIPAA, compliance

Reading time: 5 – 8 minutes

Copyright 2007 RealityRN.com

The good news is that the new HIPAA requirements aren’t quite as bad as the above cartoon, the bad news is that they are going to require some paperwork on your part. And we know how much all of us chiropractors love paperwork!  Here’s the skinny:

Covered entities and Business Associates (BA) are required to amend existing BA contracts or negotiate new contracts. Contracts executed prior to the HITECH Act do not comply with the interim breach notification rule or the new BA-related statutory requirements.  The breach notification requirements for BAs became effective September 23, 2009, and many of the other BA-related requirements become effective February 17, 2010.

Are Chiropractors Covered Entities?

The first question most chiropractors will ask is: “Am I a covered entity?”  Put simply, if you conduct transactions in electronic form, you are a covered entity.  Examples include billing electronically (or through a clearinghouse), using any electronic storage media, etc.  Most chiropractors are likely considered covered entities. If you are in doubt, see Medicare’s Covered Entity Chart to help you determine this.

What is a Business Associate?

In chiropractic, we tend to define an associate as the DC who is an employee and who helps us care for our patients. The HIPAA definition, however, is much broader than that.  In fact, the HIPAA Business Associate refers to non-employees with whom you do business and who use or have potential access to Protected Health Information (PHI).  Common examples of BAs may include: electronic clearinghouses, billing companies, transcriptionists, accountants, etc.  For more information and official definitions on Business Associates, go to the Department of Health & Human Services Business Associate page.

Why New Contracts?

As you may know, there was a changing of the guard last year and the Office Of Civil Rights now administers HIPAA per the HITECH Act of 2009.  Also, included in that provision was mandatory HIPAA audits.

One simple way an organization can see how much monitoring needs to be done is to throw out a new change and see how well we comply.  In other words, new contract + monitoring = lots of money generated in fines for the new organization.

Forgive my cynicism, I am sure that there may be other motives.  However, in the meantime, you need an updated BA contract by February 17, 2010…or else.

In case you are not motivated by the “or else” threat, here are some details:

What’s Changed in the new HIPAA Business Associate Agreement?

•          Establishes criminal and civil penalties for non-compliance

•          Now applies privacy & security rules DIRECTLY to BAs

•          Establishes mandatory breach reporting for CEs and BAs

The Hit to Your Wallet

If the threat of jail time is not enough for you (hey, I guess some people might appreciate the alone time), here are some threats to your bank account you might not like:

Penalties will be determined by nature and extent of both the violation and the harm resulting from the violation, so they could be substantial.  Civil monetary penalties have tiered increases to progressively punish offenders.

Tier 1:  Unintentional or inadvertent violation – At least $100 for each violation, but no more than $25,000

Tier 2: Reasonable cause, but no willful neglect – At least $1,000 for each violation, but no more than $100,000

Tier 3: Willful neglect, but violation is corrected – At least $10,000 for each violation, but no more than $250,000

Tier 4: Willful neglect, violation not corrected – At least $50,000 for each violation, but no more than $1,500,000

What is required?

  • Make a list of your current business associates and vendors
  • Identifying entities with which your practice shares PHI because these BA’s are subject to the same privacy and security rules as Covered Entities
  • Drafting new legal agreements for BAs to comply with the HITECH Act
  • Updating HIPAA privacy & security policies and procedures (including the creation or modification of existing Breach Notification Policies). See Dept of HHS Breach Notification Policies page for more info.

The Bottom Line

You will kick yourself for getting fined for this new rule.  Save the time in emailing me your angry thoughts, I probably agree with you and you’re screaming at the messenger anyway, which is not terribly productive.

Here are your options:

Have your attorney draft a Business Associate Agreement for you.  Search the internet for an agreement that is up-to-date (be sure that the agreement mentions the HITECH Act of 2009!  Most that I have seen online are outdated and refer to the HIPAA rules of 2006) and relative to what we do as chiropractors (I have seen ones that are 23 pages long!).

For those who’d like to save time and searching, you can obtain a copy of my Sample Business Associate Agreement that I use with my clients, updated for the recent HITECH Act changes.  Simply, open the Word Document, change the names and any relevant info to your clinic and you are on your way!  For those who would like to have an attorney review your document, this will save you time and money from having them draft one from scratch.

Anyway you slice it, be sure to act on this promptly as the deadline is approaching!

Best,

Tom Necela, DC

Legal Disclaimer: Every reasonable effort has been made to ensure the accuracy of the information and recommendations provided in respect to the Business Associate Agreement. However, due to the nature of changing payer requirements and state regulations, you may wish to seek advice from a local health care attorney to ensure that the use of the Business Associate Agreement is compliant with your state laws.

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Chiropractic Billing Ignorance or Fraud? Inconceivable!

by Tom Necela on December 29th, 2009 in Audits, Billing, Business, Coding, Documentation, Politics, compliance

Reading time: 5 – 8 minutes

inconceivable

“You keep using that word,” Inigo Montoya says to Vizzini in the cult-classic comedy The Princess Bride. “I do not think it means what you think it means.” The word that Vizzini so frequently misuses in the film is inconceivable. Unfortunately, it’s a term that seems to be floating around in the heads of too many chiropractors as well.   As we near 2010, many chiropractors are now painfully aware that their coding and billing activities are being scrutinized more closely than ever before.

(Inconceivable? Read on…)

If you have been following recent legislative developments, you will have noted increasing overpayment recovery efforts by Medicare and its contractors. The current administration has declared that health care fraud enforcement will be a top white-collar crime priority for the Department of Justice (DOJ) and the various investigative agencies. Moreover, additional funding to fight health care fraud has recently been proposed in the Senate. Senator Ted Kaufman (D-DE) has sponsored the Health Care Fraud Enforcement Act of 2009, which, in addition to increasing the criminal penalties for health care fraud, allocates an additional $20 Million per year for health care fraud detection and investigation.

($20 Million extra for fraud detection?  Inconceivable!)

While universal health care coverage may remain controversial, there is widespread support for additional legislation aimed at reducing health care fraud. This is not an attack on chiropractic per se (that would be inconceivable!) — these guys are going after every health profession at large!

Though I hesitate to get involved in all manners of political wrangling, there are some major issues creeping our way which can vastly affect our profession of chiropractic.  We need to be aware of these not only on a profession-wide political level, but also in terms of how they affect our everyday practice.

If you haven’t already heard, here’s what’s coming unless someone puts a stop to it:

  • Requiring that the U.S. Sentencing Commission amend the Federal Sentencing Guidelines to redefine the term “health care fraud offense” to include all health care crimes, regardless of where they are codified. Notably, it would also increase the offense score associated with health care fraud offenses, considerably increasing the length of any sentence handed down by the Court;
  • Making it clear that all payments made in connection with illegal kickbacks constitute “false claims” under the False Claims Act; and
  • Clarifying that it is not necessary that a defendant be aware that their conduct violates a specific provision of criminal law in order for them to be held accountable for their actions. Instead, a person would be guilty of a health care fraud offence if he (or she) knowingly does what the law forbids.  (Inconceivable!)

That last proposed provision in Senator Kaufman’s bill should scare the bejeebees out of all small physician practices, including (and perhaps) especially chiropractors. Here’s why:

Unlike the big entity hospitals who have a fleet of attorneys to defend their every move, this provision puts the small timer at a big mechanical disadvantage.

To make matters worse, we have another problem related to the meaning of the word fraud.  For many physicians, Inigo Montoya’s clarification is again applicable:  “I do not think that it [ in this case, the word fraud] means what you think it means.”

For many of us, we have heard lawyers argue that the fine line between what constitutes fraud and good old fashioned red blooded ignorance (oops I made a mistake) is intent.

This definition makes sense to me, as a non-lawyer type.  If I repeatedly conduct my business or an aspect of it (say documentation, billing or coding) in a way that is deemed illegal, substandard or just plain wrong and despite my knowing better, I continue to do so for financial gain, this seems like a reasonable definition of fraud.  On the other hand, if I don’t really know what I am doing, I may be wrong but it is out of ignorance not bad intentions.  Consequently, the ignorant (but well meaning) doctor who is reprimanded, fined or otherwise correct then proves that his intent was always good by doing one thing:  he corrects his actions.

Again, I am not an attorney, but if this provision passes through, I believe it sounds like the word fraud may not mean what we think it means.  Or at the least, the lines of intent will be sufficiently blurred to be inconsequential. It won’t matter whether you acted honestly but erroneously; you will still be guilty of health care fraud.

The Bottom line: I see a few action steps here:

1. Now, more than ever, is the time to support your local (state) AND national association to help fight these battles on our behalf!  No excuses.  Most state or national memberships will cost you the equivalent of one adjustment per month to join.  Membership in both will run you two whole adjustments per month.  The safety of your livelihood is certainly worth that much regardless of your political persuasions, philosophical differences or nitpicking with their ability to fulfill your agenda.  Get over it and support these associations now!

2. Training in compliant billing, coding, documentation should be a priority for both doctor and staff. The only way you can adequately defend yourself, prevent fraud and screen for errors is to know what you are looking for.  Unfortunately, chiropractors are either woefully inadequate at detecting their own problems or unwilling to address the issues.  Both can have devastating effects on your practice and the profession.

3. Encourage each other to rise to a higher level. Many states are requiring billing, coding or documentation education as a part of their CE requirements. State Boards need to be proactive in teaching doctors on how to comply with the requirements of their state before the docs get in trouble. Unfortunately, I have seen many docs disciplined for things that are “grey areas” such as exam documentation, SOAP note requirements, cash or TOS discounts, etc.  If we fail to meet local standards, it’s practically a sure bet that we will fail nationally as well. So we need to go to our state Boards and associations with our challenges and work to find solutions so they don’t become national problems on public display.

Certainly, I am not proclaiming that better billing, coding and documentation will solve all our chiropractic problems (that would be inconceivable!) but a lack of proper systems in these areas will definitely put us at risk for failure in a variety of different forms.

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Your Toughest Chiropractic Billing, Coding, Documentation Questions Answered – FREE!

by Tom Necela on December 15th, 2009 in Audits, Billing, Business, Chiropractic Seminars, Coding, Collections, Documentation, EHR / EMR, HIPAA, Medicare, Medicare ABN, OIG Report, chiropractic EMR, chiropractic documentation, chiropractic practice management, chiropractic webinars, compliance, seminars

Reading time: 3 – 4 minutes

questions_to_answers

You are invited as a guest to Join Tom Necela, DC, CPC, CPMA — Certified Professional Coder, Certified Professional Medical Auditor, former Insurance Claims Analyst, and current President of The Strategic Chiropractor — for a special FREE 60 minute Webinar!

FREE WEBINAR!


Thursday December 17, 2009

– 9 am PST/10 am MST/11 am CST/Noon EST

So…

Bring your TOUGHEST questions on Chiropractic:

  • Billing
  • Coding
  • Documentation
  • Collections
  • Getting Paid for the Work You Do!

And receive the ANSWERS you need that will help you:

  • Maximize your reimbursements
  • Decrease denials
  • Shorten Payment delays
  • Lower Accounts Receivable
  • Reduce your risk of audits

We are hosting this seminar as a special “thank you” to all of our blog readers, clients and customers who have made The Strategic Chiropractor the #1 source for teaching chiropractors how to “Work SMARTER, not harder” for increased profits.

As a sign of our appreciation we’d like to offer you a FREE seat for this webinar and the chance to have your question answered “live” during the event.

(If you cannot attend or would like a CD copy of the webinar, see below for details.)

Historically, this is our most popular event webinar of the year, so you need to act quickly! Previous editions of this webinar resulted in hundreds more questions than we could physically answer in a limited time format.

Space is limited and ADVANCED REGISTRATION is MANDATORY to submit questions (the earlier you submit them, the better chance they have for being included in the presentation material).  So register below, submit your questions and get your front row seat for the ultimate biggest bargain on the subject of chiropractic, billing, coding and documentation!


CLICK HERE TO REGISTER!


Hope to see you there!

Tom Necela, DC, CPC, CPMA
The Strategic Chiropractor

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Practical HIPAA Privacy for the Compliant Chiropractor

by Tom Necela on September 21st, 2009 in Business, Documentation, HIPAA, compliance

Reading time: 12 – 20 minutes

privacy

From the recent activity of my email inbox, I am guessing that the recent upsurge of interest and changes revolving around HIPAA has led many chiropractors to question the basics of what they need to do to be compliant and protect patient privacy.

Two of the most common questions that I get are in regards to sign-in sheets and display of personal health information (PHI).

While there are certainly tools to make compliance easier available,  unfortunately there are also entities that seek to charge you hefty prices for information you can get for free or is flat out unnecessary.  Sure you have to have a Red Flags Rule Identity Theft program in place by November 1, 2010.  But do you really need a $299 or a $699 software program that will write your Red Flag rules document in MS Word?  (Recently I received both of those ads via email on the same day!)  As for HIPAA compliant sign-in sheets?  Nice, but probably not necessary.  Here’s why:

Physicians can use sign in sheets and place patient charts in the plastic box outside your adjusting rooms.

Per the final modifications to the Federal Privacy Rule (67 Fed Reg. 53182, 53193-95), “incidental disclosures” such as these are allowed, provided you take reasonable safeguards to protect patient privacy.

What exactly are “incidental disclosures?”  According to the Dept of Health & Human Services Health Information Privacy page, “due to the nature of [healthcare] communications and practices, as well as the various environments in which individuals receive health care or other services from covered entities, the potential exists for an individual’s health information to be disclosed incidentally.”  In plain English, even the Feds understand that you are going to expose some PHI in the course of doing your everyday business.

So, here are a few tips to minimize your broadcasting of someone else’s business so that you can keep your nose clean:

  • Be careful that information is limited. Do not place medical info on the sign in sheet. I have seen some offices have a blank stating “list the reason why you are here.” I know the intention is to catch the occasional new injury or new patient who walks in without saying so. But you also run the risk of disclosing private health information, so get rid of that question on your form if you have one.
  • Limit access to private information. This can be achieved by monitoring you sign in sheet so that Ms. Busybody doesn’t sit there reading your list of patients to see if her friends have been in today. It may also mean providing limited access to certain areas of your clinic (don’t let patients wander around near your patient file cabinets) or come behind the front desk that has access to such sensitive information via computers and paperwork lying about.
  • Practice Good Faxing Etiquette. It’s a good idea to have a fax cover sheet with the standard disclosure/warning that the document contains private health information, is intended for the recipient only, and should be summarily fed to the shredder if it accidentally ends up into someone else’s hands. This would be considered a reasonable safeguard so that you can appropriately send PHI via fax to other providers, insurance administers, attorneys or anyone else requesting such information.

  • Password & Screen Protect. It is a good idea to provide an extra measure of security, such as adding passwords on computers that contain personal health information.  This is especially important for practices using EMR or where patients have regular access to computers in treatment rooms.  Unfortunately, left to their own devices, I have seen patients attempt to surf the net, check the schedule and even try and get into their own records via room computers.  Placing a huge sign on the computer that says “Staff only” or “Don’t Touch” or “This computer is protected by a pet python” don’t seem to have the same effectiveness as a good password.  Also, make it a policy to swat “screen snoopers”  — patients who love to come around the corner and read your computer screen.
  • Loose Lips Sink Ships. Unfortunately, the same “gift” that your front desk CA has that enables her to strike up a friendly conversation with anyone could also lead to disaster if her tongue is not kept on a short leash.  Refrain from discussing PHI in public places, hallways and remind your staff of their privacy obligations as well.

While these safeguards may seem basic to some, I have performed onsite consultations in offices breaking every one of these rules (and then some).  So, if your office is up to speed with these items, congratulations!  (Now go find some area of insufficiency and go fix that!)

Finally, for those of you who don’t trust anything other than “original source material” or are just looking to see how migraine-proof you really are, feel free to go to the Dept of HHS Health Information Privacy website to read much more about HIPAA in nauseating detail (Just don’t come back and say you weren’t warned!).

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