Posts Tagged: RAC New Issues Alerts

Denials for Lack of Physician Orders

Connolly Review Results Letters Arrive Soon After Records Submitted

Word to the wise: Make SURE you have a process in place to check ALL (Medicare, at least) claims that go out your door to be paid, to insure that a clearly worded, appropriate Physician Order exists in the medical record.

If you do NOT insure that the order exists, you are risking the entire reimbursement. And if CMS decides that a pattern of this type of error is in your facility or practice… you are risking FAR more than that reimbursement.

Before I get to the subject of the headline, let me review what else was going on, recently.

Seven New Issues Posted

Last week was a pretty quiet week, which almost no activity by any of the RACs, except for a few additions by Connolly and HDI, on Friday, September 17. Connolly added 20 new DRG Validations, listed in five of six new (yes, really NEW) issues.

1 Duplicate Claims – DMEPOS
2 MSDRG 056: Degenerative Nervous System Disorders with MCC
3 MSDRG 057: Degenerative Nervous System Disorders without MCC
4 MSDRG 249: Percutaneous Cardiovascular Procedure with Non Drug-Eluting Stent without MCC
5 MSDRG 368, 369, 370, 371, 373, 377, 378, 379, 380, 381, 382, 383, 384, 385, 387, 388, 389, 390, 391, 392, 393, 395: Gastrointestinal Disorders
6 MSDRG 820: Lymphoma and Leukemia with Major O.R. Procedure with MCC

HDI added Part A Services delivered during a Hospice period.

1 Hospice Related Services – A

But these “new” issues are not all that happened…

Many Edits Made

Over the past couple of weeks, there have been many edits made to existing posts on all four of the RAC sites.

For example, many posted issues for Region A, DCS, actually removed some states from some of their approved issues. You might want to check the list, especially if you are in Vermont, New Hampshire or Maine. (Vermont was dropped from 14 issues, New Hampshire from 12, and Maine from less than that.)

Acute readmissions have been a recognized target for RACs for some time. There was an interesting edit made to the issue as posted on Region D, HDI’s site. Previously, the issue would deny for same day acute re-admissions for the same DRG with no B4 codes on the second claim. Now, it denies for no B4 or 42 Condition Codes on the second claim.

Another edit made in Region D: under the DRG Validation issue for Nervous System Disorders, MSDRGs 075 and 076 were specifically removed from the approved DRG list. Now, I caution everyone, be careful to not transpose those numbers – in the same issue are the approvals for Medical Necessity and DRG Validation for MSDRGs 057 and 056. I warn you because I myself have more than once looked at the list and been puzzled by it, when I kept thinking that the wrong ones were removed.

Denials for Lack of Physician Order

Despite the lack of activity on the lists themselves, the RACs have been very busy, sending out review results letters and denials. We have seen in Region C the first denials to come thru for a lack of or improper physician orders in a medical record. The types of claims being denied are both inpatient and outpatient. I can give you two examples that happen to be short stays.

An outpatient claim, where the patient wound up staying for 3 days. At some point, the patient’s status was changed to inpatient, which would have been appropriate (I’m told by the provider), except for one thing: in the documentation, there is a Nurse’s note, changing the patient status to inpatient, but there is nothing at all in the record that indicates that a physician ever approved or ordered this change. The claim was therefore denied, and the provider has no chance on appeal, because the physician’s order simply does not exist.

An inpatient claim, a 1-day stay: the patient was admitted to inpatient, even with just an 8-hour stay. I was told that the services were, in fact, inpatient services, and could have survived audit for inpatient status. Well, it could have survived, except for one thing: no physician order appears in the record to admit to patient to anything. Once again, the claim was denied; and again, there is no chance to appeal, since the order simply does not exist in the record.

Want to know the scary thing? Those claims were very easy to deny, they are not “worthy” of appeal, and the provider told me that the number of records requested was very few, compared to the limits that the RAC could ask for. In other words, the RAC knew exactly which records to ask for, and they were right on the money.  It seems like this is the proverbial “Easy Money” for the RAC.

Like I said, “Word…”

Why Did They Wait?

But if this is so easy, then why wasn’t the RAC doing this more, before now? My opinion is that the RACs have been waiting for at least some of the Medical Necessity issues to be released, so that they don’t have to ask for the records again, or so that they can have all their weapons loaded before they begin the battle in earnest. I think it is because the RACs are private companies, who actually care about efficiency. In the private sector, efficiency means more profits, and this makes private sector companies much better at this kind of work than many government agencies, who don’t have to worry about such “bourgeois” concerns as “profits.”

So What’s the “Word”?

Providers need to insure they have a reliable process in place to check documentation for physician orders before any claim is filed.

Which ones should they check? Only the ones they intend to send out the door. The RACs are willing to do this job for just nine percent of the claim (in Connolly’s case, anyway).

A provider, then, should be willing to do this for slightly more than that… say, 100 percent of the claim.

So I guess I’ll say that’s the “Word”: 100%.

That’s what is at stake, and that’s what providers should check.

Aiming High with Medical Necessity Reviews

It’s Worse Than You Think

In previous posts, we’ve reported that two RACs have now posted approval to begin reviews of both medical necessity and DRG Validation, for the exact same 29 DRGs.  We have also previously shown that the RAC lists (as posted earlier this year) are skewed toward high-dollar and high-volume claims, to no one’s surprise.

Nevertheless, we have a “new” list, so let’s take a look at this “List of 29,” let’s call it — the first list of MS-DRGs approved for RAC review of medical necessity. Can we learn anything about what the RACs and CMS are thinking?

The answer is YES, we can.  Click here if you just want to jump down to the conclusion…

How Skewed Is This “List of 29″?

Well… not very, but that’s actually worse for providers! Why is it worse? Read on, and it should be come clear…

The first table below begins with some unfortunate insight, when counting the number of CC or MCCs in the List of 29. If you are not too familiar with the MS-DRG system, we recommend reading a PDF made available by CMS on the system.

Briefly, the Medicare Severity-Diagnosis Related Groups (MS-DRGs) are a system of codes that provide up to three levels of severity for a particular condition or diagnosis. A “Base DRG Group” combines all levels of severity into a single category, allowing us to combine the the individual MS-DRGs for reporting. Individual MS-DRGs within a Base DRG Group are differentiated according to the presence of either a complication (CC) or a major complication (MCC), or neither. Some Base DRG Groups, however, happen to have only two codes assigned to them. At the end of the day, all the MS-DRGs are assigned payment rates, based on their relative use of resources and supplies. Simply put, a condition that is accompanied by a major complication (MCC) is more costly to treat, therefore the provider is paid more for that claim. A condition with a complication (CC) is not paid quite as much, and a condition with neither CC nor MCC is paid the least of the three.

Now consider this table and consider what the numbers reveal:

  • 8 or 28%   – the number of MS-DRGs without a CC or MCC
  • 13 or 45%   – the number of MS-DRGs with an MCC
  • 18 or 62%   – the number of MS-DRGs with either a CC or MCC.

For the sake of this article, let’s just assume that all Base DRG Groups include exactly 3 MS-DRGs: one with an MCC, one with a CC, and one without CC or MCC. If that were true, then any randomly selected list would likely have 33% of each kind of MS-DRG. However, if the list of MS-DRGs was selected with a weighting toward the MS-DRGs with an MCC, then there would be a higher percentage of those in the list, and a lesser percentage of the two others. Basically, any list with one type of MS-DRG appearing more than 33% of the time is evidence that selection of the list favored that type of MS-DRG over the others.

In the above table, MS-DRGs with an MCC appear 45% of the time, and therefore is evidence that the list is skewed toward those MS-DRGs with an MCC. So, as mentioned above, we can once again demonstrate that even this new list is skewed toward the higher paying MS-DRGs, particularly the ones with MCCs. Of course, this still comes as no surprise, since the RACs are paid via contingency fees — the more they find, the more they get paid by CMS.

But I’m not done yet.

The size of the “skew” was disappointing, and something else about those numbers just didn’t sit right with me. The “skew” just wasn’t very big. I was expecting more. And why were there so many lower-paying DRGs in the list? “Whassup with that?” as my teenage daughter would say.

Could it be that the list is not really intended to be very skewed? That’s when the pattern became clear to me, and a reason for that pattern also came to mind…

RAC to CMS: “Hey, it’s all good!”

The RACs have obviously been busy, these past months. They were not sitting idly by, waiting for medical necessity to be released. It appears to me quite obvious that they have been running their little data-mining machines in high gear because it seems that they have dredged up plenty of evidence of improper payments due to what will be defined in denials as “a lack of medical necessity.”

Remember, the only thing that matters to a RAC is the documentation, or the lack there of, to clearly demonstrate medical necessity, not the reality of the patient encounter. And to get approval from CMS to pursue an issue across their region, a RAC must gather enough evidence to make a case that there is a problem with said claims.

I kept staring at the list. A pattern became obvious to me. Perhaps the pattern is obvious to you, too, but I’ve neither seen nor heard anyone else mention what this pattern MEANS for providers, and I do think it is important to recognize, to enable more clear thinking about what the RACs and CMS intend to do.

A Pattern Emerges

The table below shows the pattern: six complete DRG Groups, included in the List of 29. That’s 16 DRGs, more than half of the list. And remember, these are high-volume DRGs…

MS-DRGs Base DRG Group Descriptions
684-683-682 Renal failure
551-552 Medical Back Problems
314-315-316 Other Circulatory System Diagnoses
293-292-291 Heart failure & shock
192-191-190 Chronic obstructive pulmonary disease
056-057 Degenerative Nervous System Disorders

What this means is that for these specific diagnoses, CMS and the RACs have evidently found enough evidence to warrant RAC reviews for the medical necessity of these treatments for ALL such claims, not simply the higher paying ones.

Does this mean that CMS actually believes that the patients really did not NEED these treatments? Doubtful.

Or, does this mean that CMS is willing to argue with physicians about the medical necessity of treating these conditions or that they have been misdiagnosed?  Perhaps this is true, for a few cases; but I even find this doubtful, although to read some articles out there, one would think that physicians are preparing to wage war on who-knows-best-how-to-care-for-patients with the RACs’ medical directors. While such battles will inevitably occur, it would seem to me that this is not the kind of evidence that the RACs have already found and used to convince the New Issue Review Board at CMS to approve reviews for all the MS-DRGs in these six Base DRG Groups.

Here is what I think it more likely means: the RACs have found enough evidence to support the assertion that providers are recording neither appropriate documentation nor enough documentation in the medical record to warrant reimbursement for services provided to Medicare beneficiaries in their facilities, and that the problem is so ubiquitous that it bears scrutiny across almost the full spectrum of DRGs. Remember, HDI already has approval for DRG Validation for about 80% of all MS-DRGs.

I’m neither an expert on medical necessity nor on auditing medical records, but I do know how to analyze data and find patterns and meaning in those patterns. To me, this latest list simply nails the issue. This is not about medicine. It’s about money.

Nothing New Except Medical Necessity

RAC-LOGO-HDI

HDI Edits Ten Issues to include Reviews of Medical Necessity for 29 DRGs

The Region D RAC, HDI, only took about a week to also garner approval to begin review of medical necessity for 29 DRGs previously approved for DRG Validation, after the Region B RAC, CGI, was approved by CMS to begin medical necessity reviews for the same DRGs, as of August 6, 2010. However, while CGI had to post six (6) new issues to their site, because those DRGs had never appeared on their site before, HDI did not have to post any new issues. Of the existing 746 MSDRGs, HDI had already posted approvals for DRG Validation of over 75% of them, and these 29 did happen to already be among their approved list.

The I’s Have It: CGI and HDI

Now two of the four RACs have approval to review medical necessity, putting 24 states under such review. We do expect that to grow in the next few days, since it took HDI only about a week to catch up to CGI, so we assume Connolly and DCS are not far behind.

Although our previous post provided lists and links to the 29 DRGs, those links and titles were created using the CGI website data. Also, that list was broken into two lists — one for “new” issues, and one for “previous” issues.

Below is a list of the ten “previous” issues that now include some approvals for medical necessity. It was created using the HDI website data, which is slightly different. To see the full detail, as posted by HDI, follow the links:

(Note: to see the details, you will need to login to the eduTrax main siteRegistration is still Free.)

# eduTrax version of the HDI Posted Issue Title Originally
Posted
1 MSDRG 034-036, 215, 222-227, 231-236, 242-249, 258-262, 265, 286-287: DRG Validation-Cardiac Procedures 12/16/09
2 MSDRG 052 thru 086, 088 thru 093 and 097 thru 103: DRG Validation-Nervous System Disorders 12/16/09
3 MSDRG 163, 164, 165, 166, 167, 168,175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204, 205, 206, 207, 208: DRG Validation-MDC 04 Respiratory 12/16/09
4 MSDRG 280, 281, 282, 283, 284, 285, 288, 289, 290, 291, 292, 293, 296, 297, 298, 299, 300, 301, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 313, 314, 315, 316: DRG Validation-Cardiovascular Diseases 12/16/09
5 MSDRG 294, 295, 312: DRG Validation-Cardiovascular, Other 01/13/10
6 MSDRG 368 thru 395 and 432 thru 446: DRG Validation-Gastrointestinal Disorders 12/16/09
7 MSDRG 539, 540, 541, 545-558, 564, 565, 566: DRG Validation-Musculoskeletal Disorders 01/13/10
8 MSDRG 637, 638, 639, 640, 641, 642, 643, 644, 645: DRG Validation-Endocrine, Nutritional & Metabolic Disorders 12/16/09
9 MSDRG 682, 683, 684, 685, 686, 687, 688, 689, 690, 695, 696, 697, 698, 699, 700: DRG Validation-Kidney & Urinary Tract Disorders 12/16/09
10 MSDRG 808, 809, 810, 811, 812, 813, 815, 815, 816: DRG Validation-Blood & Immunological Disorders 12/16/09
 

Most Difficult to Track

It is perhaps insignificant but notable that the first two RACs to be approved for medical necessity review also happen to have the two websites that are the most difficult to monitor for changes. Both sites are constructed in a way that requires interaction, and does not provide a simple method of capturing the data on the page, to compare to a future capture of the same page.

New Service Coming

We have resorted to creating our own software application to specifically follow and compare all the pages on these two sites. Shortly, we will announce and offer a for-fee service to notify our clients and subscribers of any changes posted to any of the RAC New Issues pages, including the details screen, in addition to our eduTrax RAC New Issues Tool Suite®.

Medical Necessity Approved for RAC, New and Old

Newly Approved Medical Necessity Reviews by RACs

CGI Federal, the CMS RAC for Region B posted approvals for review of both Medical Necessity and DRG Validation for some 29 DRGs since last Thursday, August 12, 2010.

Half of the top 20 DRGs nationwide were included. Click here to jump down to the list.

Our subtitle above calls these “Newly Approved,” instead of “New.”  Why did I use that phrase?  Why not just say “new”? Well, because that’s not quite accurate, and it seems that CMS and CGI don’t consider all of them to be “new” issues. Are you surprised that a word like “new” is not well defined?

This little video snippet should help you recall recent public debate about what the word “is” means.

I’ve had “debates” like that, on occasion, and I’ve always wanted to ask the person debating with me, “How many moons are in your night sky?” Of course, some words change definitions over time, or just mean different things to different people. Small words should be easy to define, though, don’t you think?

Anyway, keep this in mind as you read on, because there does not seem to be a consensus in our industry on what the word “new” means.

More about this later…

 

A Valid “New” Concern for Providers

The morning after the “newly approved” medical necessity issues were first posted by CGI, I spoke with the a RAC Team Leader for a hospital system with hospitals in several states. Even though this system has no hospitals in Region B, I know this person as a keen observer of all the RAC activities, and we often talk about the impact of the RACs. “We heard from our state hospital association that Region B would be the first to post some issues for medical necessity, and that it would happen this week,” they told me. “So, this wasn’t really a surprise. But this marks a new phase for the RACs, and we are concerned about what’s on the list.”

50% of Top 20 DRGs Now Approved

A quick analysis of the list proves that provider concerns are quite valid – of the top 20 DRGs for FY2009, 10 made this new list. Therefore, perhaps half of the top 20 DRGs in any facility either are now or soon will be targets of RAC reviews for medical necessity; and remember, they were already likely targets for reviews of physician admission orders, DRG validation, and the coding for principal and secondary diagnoses.

The First “New” DRGs Approved for Medical Necessity

Now, let me explain a small caveat, about the word “new”:  some of the DRGs approved for Medical Necessity are truly “new” issues, as those DRGs have never appeared on the (CGI) list before; while other DRGs were already approved for DRG Validation, but have now been “newly approved” for Medical Necessity review, as well.

So now, here is a list of six (6) issues with nine (9) DRGs never before posted on the CGI website, but now are posted as approved for review of both Medical Necessity and DRG Validation. To see the full detail, as posted by CGI, follow the links:

(Note: to see the details, you will need to login to the eduTrax main siteRegistration is still Free.)

There was also one DRG added for the first time, but only approved for DRG Validation:

Ok, but that’s still only nine of the DRGs. Where are the others posted on the site?

Twenty More DRGs with Medical Necessity “Newly Approved”

The other 20 DRGs now approved for Medical Necessity review were all listed previously for DRG Validation in a total of 12 issues, dating back to December, 2009, among the first complex reviews posted by CGI. These 20 DRGs were not listed as “new” issues, but were simply “called out” as approved for Medical Necessity by renaming those previously approved issues.

The 12 issues with some DRGs newly approved for medical necessity review are as follows:

Confused yet?

Why Not List All Those As “New Issues”?

Why indeed!  NOW, with the lists out of the way, let’s finally discuss why I even bring this up, and why it really will matter to providers — at least the ones who are trying to keep up with what the RACs are doing.

“New” Issues Must Be Posted by the RAC

According to the RAC Statement of Work, before a RAC can begin sending out requests for documentation to conduct complex reviews, or even demand letters for automated reviews already completed, the RAC must first win the approval of any audit issues from CMS, and then they must post all those approved issues on a public web site.

Last August, we all began watching those websites ominously take form and grow by leaps and bounds, in some cases, with the addition of more and more “new,” approved issues. We were curious to see the formats that the RACs were using, as each seemed to have their own private format for posting the issues.

Why Not All Use the Same Format?

Because they don’t have to. The RAC Statement of Work actually says NADA about what the format of these websites should be, and how “approved issues” should be “posted” on the sites. Whence, each RAC has their own interpretation of how to “post” their “new,” dare we say “newly minted,” approved issues.

To be sure, Medical Necessity review was never approved by CMS for a RAC before August 6, (now there’s an ominous date for you) and no issue approved for medical necessity review has being posted on any RAC website before August 11. However… now that such approvals have been garnered, and such posts have been made, at least some of said posts have been done in a manner that could be described as… well… obscure.

I call them obscure because some of these posts wind up as simple “edits” instead of “new” line items.

The method that CGI has chosen for posting approvals of Medical Necessity reviews is either of two methods: 

  1. post it as a new issue if the DRG is not already on the list; or
  2. merely change the name or title of the previously approved issue that lists the DRG, to include Medical Necessity review for one or more of the already approved DRGs in that issue.

So, some 20 of the 29 DRGs wound up “sprinkled” within 12 older issues, and simply had their titles “edited” instead of appearing as “new” line items in the list.

Why does this matter? Because the RACs can now post changes to their list of approved issues, without notice. Of course, they didn’t have to notify any of the providers before, but the lists seemed to do that, after a fashion – a form of notifying providers of what’s being reviewed, what to expect from the RACs.

Since the lists first appeared, many of us were thinking that we could watch the RAC websites and see the “new issues” get posted, from week to week; hoping we could simply sort the list (somehow) by date posted, and we’d know if there was anything “new” on the list or not.

“We all” were wrong. It would seem that “new” doesn’t have the same meaning, as we now see with the way a “new” review approach (medical necessity) is embedded in the original posted issue. Keep in mind that there is no reason to think that the other RACs will not adopt this same approach, also. Instead of posting “new” issues for Medical Necessity, they may simply rewrite the descriptions of their “old” issues, just as CGI has done.

Anyway, more “new”…oops… “edited” issues can be expected, any day. They’ll just be harder to track now, because we’ll have to read every issue, every day, to see what changed.

Oh, and by the way, I only see one moon in my night sky — how about you?

Connolly Adds Nine RAC Approved Issues

RAC-LOGO-CGIThe RAC contracted for the southern and southeastern states, Connolly Healthcare, continues to post new automated issues concerning dose-versus-units-billed, further proving that injections and infusions is a major target for RAC review, and a continuing concern for provider reimbursement, especially for physicians and outpatient settings.

The List

Below are the nine new issues, posted earlier this week. Follow the links to each one, in the eduTrax RAC New Issue Database®, which can be seen with simple free registration at myedutrax.com.

Who’s Getting Stuck?

You’ve billed for it, even been paid for it. But will you get to keep the money? And you can’t take the injection back…

This is like getting an injection with a barbed needle: feels ok going in, but coming back out it hurts like <insert your favorite expletive>.

For both providers and payers, there’s no confusion about one thing: injections and infusions can be tricky to properly bill.

Instruction Available

The eduTrax® site has two excellent courses available for their paid subscribers, and these can also be purchased as downloads or CDs. Short previews are available to give you an idea of their quality and content:

BLUE-PREVIEW-ON-Button Coding Injections and Infusions — reviews the recent changes to injections and infusions codes and offers guidance on correct capture of these services. (3 minute preview)

BLUE-PREVIEW-ON-Button RAC Focus: Injections & Infusions — discusses why, how & where physicians must be involved, and addresses code selection based upon time and service provided. (8 minute preview)

Click here to send us an Email for more information or to place an order.


Still No Medical Necessity Approvals

To date, there are still no issues posted & approved for review of Medical Necessity for any issue.

As usual, we wait…

Connolly Adds 20 More in April

More High Dollar, High Volume DRGs

Connolly Healthcare, the RAC for Region C, posted 20 new DRG Validation Issues to their list of CMS-Approved audit issues, on Friday, April16. The list includes eight (8) MS-DRGs with very high Relative Weights (which equates to high dollar reimbursements and thereby potentially high RAC fees) and six (6) with claim volumes in the top 25% of all DRGs (providing a rather large number of claims to potentially audit).

Four (4) of the newly approved issues are for MSDRGs with Relative Weights of better than 10.0.  Such claims have high dollar reimbursements, averaging over $45,000 per claim, nationwide.

Once again, these approval/postings seems to continue a pattern previously noted. (See our posts from February 9 and March 17.)

Virgina and West Virginia Now Included

The states of Virginia and West Virginia have been absent from the list of states affected or approved for any issues, until some recent changes to the lists, earlier in April. Still, not all the issues have been approved for these two states.

The New Issues

Below are the new posted and approved audit issues for RAC Region C, including Relative Weights and FY09 Discharge Ranks:  (a low rank number relates to a large number of discharges for that DRG, nationwide)

  • MS-DRG 003: ECMO or Tracheotomy with Mechanical Ventilation 96+ Hours or Principal Diagnosis Except Face, Mouth and Neck with Major O.R. (RW 18.27; Rank 122)
  • MS-DRG 001: Heart Transplant or Implant of Heart Assist System with MCC (RW 24.85; Rank 720)
  • MS-DRG 005: Liver Transplant with MCC or Intestinal Transplant (RW 10.14; Rank 713)
  • MS-DRG 332: Rectal Resection with MCC (RW 4.78; Rank 297)
  • MS-DRG 562: Kidney Transplant (RW 1.38; Rank 79)
  • MS-DRG 011: Tracheotomy for Face, Mouth, and Neck Diagnoses with MCC (RW 4.73; Rank 476)
  • MS-DRG 012: Tracheotomy for Face, Mouth, and Neck Diagnoses with CC (RW 3.03; Rank 584)
  • MS-DRG 020: Intracranial Vascular Procedures with Principal Diagnosis of Hemorrhage with MCC (RW 8.44; Rank 696)
  • MS-DRG 021: Intracranial Vascular Procedures with Principal Diagnosis of Hemorrhage with CC (RW 6.21; Rank 696)
  • MS-DRG 927: Extensive Burns or Full Thickness Burns with Mechanical Ventilation 96+ Hours with Skin Graft (RW 13.74; Rank 629)
  • MS-DRG 929: Full Thickness Burn with Skin Graft or Inhalation Injury without CC/MCC (RW 2.01; Rank 728)
  • MS-DRG 023: Craniotomy with Major Device Implant/Acute Complex Central Nervous System Principal Diagnosis with MCC or Chemo Implant (RW 4.94; Rank 469)
  • MS-DRG 024: Craniotomy with Major Device Implant/Acute Complex Central Nervous System Principal Diagnosis without MCC (RW 3.26; Rank 212)
  • MS-DRG 007: Lung Transplant (RW 9.45; Rank 689)
  • MS-DRG 076: Viral Meningitis without CC/MCC (RW 0.83; Rank 510)
  • MS-DRG 461: Bilateral or Multiple Major Joint Procedures of Lower Extremity with MCC (RW 4.56; Rank 187)
  • MS-DRGs 799, 800, 801: Splenectomy w MCC, w CC, w/o CC/MCC (RW 5.11, 2.53, 1.59; Ranks 666, 709, 620)
  • MS-DRG 177: Respiratory Infections & Inflammations with MCC (RW 2.05; Rank 35)
  • MS-DRG 178: Respiratory Infections & Inflammations with CC (RW 1.49; Rank 132)
  • MS-DRG 179: Respiratory Infections & Inflammations without CC/MCC (RW 1.01; Rank 119)

To see the complete original listings (on the RAC websites), visit this page.

Or, to find a more useful listing of all their posted issues, visit  this page on eduTrax.  (Registration required.)

Still No Medical Necessity Reviews

All of the above approved issues still include this caveat:

(At this time, Medical Necessity excluded from review).

As faithful readers know, however, Medical Necessity Reviews could be approved by CMS at any time now, since the CMS RAC Review Phase-In Strategy allows for such audits in calendar 2010.

We will shortly post further analysis, in an overview of the DRG Validations posted to date by all four RACs.

Connolly Adds Yet Another 25 New Issues

Several with High Rankings, High Dollar Value

Connolly Healthcare, the RAC for Region C, posted 25 new DRG Validation Issues to their list of CMS-Approved audit issues, on Tuesday, March 16. Once again, Connolly has been approved for even more MS-DRGs with high Relative Weights (which equates to high dollar reimbursements) and high claim volumes (which equates to large number of claims to potentially audit).

Three (3) of the newly approved issues are for MSDRGs with Relative Weights of better than 5.0.  Also, six(6) of the 25 new issues are ranked (by number of discharges)  in the top 100 DRGs nationwide.

This latest round of approval/postings seems to continue a pattern we have previously noted here. (See our post from February 9.)

Noteably, the states of Virginia and West Virginia are still absent from the list of states affected or approved for any of these issues. The 13 states affected by these approved issues are: Alabama, Arkansas, Colorado, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas.

The List

Below are the new posted and approved audit issues for RAC Region C:

  1. MS-DRG 226: Cardiac Defibrillator Implant without Cardiac Catheterization with MCC 
  2. MS-DRG 415: Cholecystectomy Except by Laparoscope without C.D.E. with CC 
  3. MS-DRG 237: Major Cardiovascular Procedures with MCC or Thoracic Aortic Aneurysm Repair 
  4. MS-DRG 969: HIV with Extensive O.R. Procedure with MCC 
  5. MS-DRG 933: Extensive Burns or Full Thickness Burns with Mechanical Ventilation 96+ Hours without Skin Graft 
  6. MS-DRG 239: Amputation for Circulatory System Disorders Except Upper Limb and Toe with MCC 
  7. MS-DRG 934: Full Thickness Burn without Skin Graft or Inhalation Injury 
  8. MS-DRG 243: Permanent Cardiac Pacemaker Implant with CC 
  9. MS-DRG 246: Percutaneous Cardiovascular Procedure with Drug-Eluting Stent with MCC or 4+ Vessels/Stents 
  10. MS-DRG 253: Other Vascular Procedures with CC 
  11. MS-DRG 749: Other Female Reproductive System O.R. Procedures with CC/MCC 
  12. MS-DRG 803: Other O.R. Procedures of the Blood and Blood-Forming Organs with CC 
  13. MS-DRG 823: Lymphoma and Nonacute Leukemia with Other O.R. Procedure with MCC 
  14. MS-DRG 315: Other Circulatory System Diagnoses with CC 
  15. MS-DRG 617: Amputation of Lower Limb for Endocrine, Nutritional, and Metabolic Disorders with CC 
  16. MS-DRG 829: Myeloproliferative Disorders or Poorly Differentiated Neoplasms with Other O.R. Procedure with CC/MCC 
  17. MS-DRG 486: Knee Procedures with Principal Diagnosis of Infection with CC 
  18. MS-DRG 941: O.R. Procedure with Diagnoses of Other Contact with Health Services without CC/MCC 
  19. MS-DRG 577: Skin Graft and/or Debridement Except for Skin Ulcer or Cellulitis with CC 
  20. MS-DRG 358: Other Digestive System O.R. Procedures without CC/MCC 
  21. MS-DRG 133: Other Ear, Nose, Mouth and Throat O.R. Procedures with CC/MCC 
  22. MS-DRG 424: Other Hepatobiliary or Pancreas O.R. Procedures with CC 
  23. MS-DRG 616: Amputation of Lower Limb for Endocrine, Nutritional, and Metabolic Disorders with MCC 
  24. MS-DRG 675: Other Kidney and Urinary Tract Procedures without CC/MCC 
  25. MS-DRG 717: Other Male Reproductive System O.R. Procedures except Malignancy with CC/MCC 

To see the complete original listings (on the RAC websites), visit this page.

Or, to find a more useful listing of all their posted issues, visit  this page on eduTrax.  (Registration required.)

Still No Medical Necessity Reviews

All of the above approved issues still include this caveat:

(At this time, Medical Necessity excluded from review).

We again remind everyone that Medical Necessity Reviews could be approved by CMS at any time now, since the CMS RAC Review Phase-In Strategy allows for such audits in calendar 2010.

Stay tuned, as the situation unfolds.

Region C RAC Adds 19 New Issues

Connolly Posts 19 New DRG Validation Issues

February 9, 2010 — Connolly Healthcare, the RAC for Region C (south & southeastern states), posted 19 new approved issues for review on their RAC Issues page, on Monday, February 8, 2010. Following the format they have been using to date, the listed issues include only single MS-DRGs, but are still not listed in any particular order.

All of the new issues are approved for DRG Validation, affecting all thirteen of the Region C states (AL, AR, CO, FL, GA, LA, MS, NM, NC, OK, SC, TN, TX).

Top Ranked, High Dollar DRGs Added

Give their demonstrated proclivity to review high-dollar DRGs, these additions are not surprising, coming from Connolly.

See our recent analysis done for RAC Monitor, HERE.

We will shortly post another analysis of their approved issues list, analyzing the posted issues by DRG Relative Weights and by DRG Rank (in terms of the number of discharges, nationwide). Of the 52 DRGs with Relative Weights of better than 5.0, Connolly just added four (4) more to their list. Six(6) of the 19 new issues are ranked (by number of discharges)  in the top 100 DRGs nationwide.

Three States Added to Previously Posted Issues

Notably, Arkansas, Lousiana and Mississippi were added to the states affected lists for all previously approved DRG Validation issues, now bringing them fully under the magnifying glass of the RAC. These three states were added to the posted DRG Validation issues on February 2.

Still No Medical Necessity Reviews

None of the posted issues are approved for review of Medical Necessity, and such reviews do not appear to have been approved for any of the RACs, to date. However, it is likely that the existing DRG Validation issues will all be approved for medical necessity review in short order, since the CMS RAC Review Phase-In Strategy allows for such approvals in calendar 2010.

More Useful Lists Available

Find links to all the RAC New Issues Pages here. For more useful lists, see below.

Use the links below to see details of the newly posted issues, in our database (Editor’s Note: this list appears here in the reverse order as posted by Connolly):

1 MS-DRG 208: Respiratory System Diagnosis with Ventilator Support
2 MS-DRG 038: Extracranial Procedures with CC
3 MS-DRG 227: Cardiac Defibrillator Implant without Cardiac Catheterization without MCC
4 MS-DRG 240: Amputation for Circulatory System Disorders Except Upper Limb and Toe with CC
5 MS-DRG 242: Permanent Cardiac Pacemaker Implant with MCC
6 MS-DRG 957: Other O.R. Procedures for Multiple Significant Trauma with MCC
7 MS-DRG 344: Minor Small and Large Bowel Procedures with MCC
8 MS-DRG 488: Knee Procedures without Principal Diagnosis of Infection with CC/MCC
9 MS-DRG 533: Fractures of Femur with MCC
10 MS-DRG 216: Cardiac Valve and Other Major Cardiothoracic Procedures with Cardiac Catheterization with MCC
11 MS-DRG 460: Spinal Fusion Except Cervical with MCC
12 MS-DRG 248: Percutaneous Cardiovascular Procedure with Non Drug-Eluting Stent with MCC or 4+ Vessels/Stents
13 MS-DRG 222: Cardiac Defibrillator Implant with Cardiac Catheterization with Acute Myocardial Infarction/Heart Failure/Shock with MCC
14 MS-DRG 201: Pneumothorax without CC/MCC
15 MS-DRG 945: Rehabilitation with CC/MCC
16 MS-DRG 470: Major Joint Replacement or Reattachment of Lower Extremity without MCC
17 MS-DRG 885: Psychoses
18 MS-DRG 291: Heart Failure and Shock with MCC
19 MS-DRG 189: Pulmonary Edema and Respiratory Failure

Find a list of all their posted issues HERE.  (Registration required.)

Region B RAC Approved for 47 New DRGs

CGI Federal Lists 20 New Issues

Includes 47 DRGs for Overpayment and 4 DRGs for Underpayment

CGI Federal, the RAC for Region B (western states), posted 20 new approved issues for review on their RAC Issues page, on Friday, January 22, 2010. Following the format being used by the Region D RAC, HDI, the listed issues are grouped together by Issue Name, which often includes multiple MS-DRGs.

All of the new issues are approved for DRG Validation, affecting all seven of the Region B states (IL, IN, KY, MI, MN, OH, WI). Notably, one of the new issues posted is approved for underpayment review, although only for four(4) of the five (5)  MS-DRGs listed in the issue approved for overpayment review.

None of the new issues mention review of Medical Necessity, although such reviews do not appear to have been approved for any of the RACs, to date. However, it is likely that the existing DRG Validation issues will all be approved for medical necessity review in short order, since the CMS RAC Review Phase-In Strategy allows for such approvals in calendar 2010.

Find links to all the RAC New Issues Pages here. For more useful lists, see below.

Use the links below to see details, in our database:

1 MSDRGs 189: Acute Respiratory Failure
2 MSDRGs 222, 224, 226: Cardiac Defib Implant W Cardiac Cath W/O AMI/HF/Shock W MCC
3 MSDRGs 216, 217, 219, 220: Cardiac Valve & Oth Maj Cardiothoracic Procedures w CC or MCC
4 MSDRGs 034, 035, 037, 038: Carotid Artery Stent & Extracranial Procedures w CC or MCC
5 MSDRGs 231, 233, 235: Coronary Bypass W PTCA/Cardiac Cath w MCC
6 MSDRGs 131: Cranial/Facial Procedures w CC or MCC
7 MSDRGs 020, 021, 023, 025, 026: Craniotomy, Endovascular and Intracranial Vascular Procedures w CC or MCC
8 MSDRGs 113, 116, 121, 124: Disorders Of The Eye, Infections And Procedures (Orbital And Interocular) w CC or MCC
9 MSDRGs 689: Kidney & Urinary Tract Infections w/MCC
10 MSDRGs 237: Major Cardiovasc Thoracic Aortic Aneurysm Repair Procedures w CC or MCC
11 MSDRGs 163, 164: Major Chest Procedures w CC or MCC
12 MSDRGs 129: Major Head & Neck Procedures w CC or MCC
13 MSDRGs 228, 229: Other Cardiothoracic Procedures w CC or MCC
14 MSDRGs 133: Other Ear, Nose, Mouth & Throat O.R.Procedures w CC or MCC
15 MSDRGs 246, 248, 250: Perc Cardiovasc Proc W Drug-Eluting Or Non Drug Eluting Stent w MCC or 4+ Vessels/Stents
16 MSDRGs 041, 042: Periph/Cranial Nerve & Other Nerv Syst Proc w CC or MCC
17 MSDRGs 028, 029: Spinal Procedures Neurostimulators W CC or MCC
18 MSDRGs 003, 004, 011, 012, 013: Tracheostomy
19 MSDRGs 004, 011, 012, 013: Tracheostomy – Underpayment
20 MSDRGs 031, 032: Ventricular Shunt Procedures W CC or MCC

Find a list of all their posted issues HERE.  (Registration required.)

Ambulance Services Reviews Posted by Another RAC

A Different Posting to Review Ambulance Services during Inpatient Stays

CGI, Region B RAC for CMS, posted Automated Reviews of Ambulance services, as follows:

Separately Paid Ambulance Service during Inpatient Hospitalization Review — Affects Outpatient & Professionals

The description listed is:

Ambulance transports provided by Hospital-Based Ambulance Providers and Suppliers to beneficiaries who are in an inpatient stay are the responsibility of the inpatient hospital provider with the exception of transports on the day of admission, day of discharge and during a leave of absence from the inpatient facility.

This is a different issue from the one just posted by the Region A RAC. That issue only reviewed claims by Ambulance Service Providers, where this new posting reviews Outpatient and “Professional” claims.

To see the complete list, register and logon to the eduTrax RAC New Issues Tools®.

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