04/17/2008
CMS Proposes Doubling the Number of Non-reimbursable Hospital-Acquired Conditions

My August 13, 2007 blog discussed CMS’ then-groundbreaking move to deny reimbursement for seven hospital-acquired conditions including pressure ulcers, hospital falls, certain catheter-associated infections, air embolism as a result of surgery, leaving an object in during surgery, providing incompatible blood or blood products and mediastinitis following coronary bypass surgery.  CMS has now announced that it proposes expanding the list to include the following nine conditions:

  • Surgical site infections following certain elective procedures
  • Legionnaires’ disease
  • Extreme blood sugar derangement
  • Lung collapse (Iatrogenic pneumothorax)
  • Delirium
  • Ventilator-associated pneumonia
  • Formation/movement of a blood clot (Deep vein thrombosis/Pulmonary Embolism)
  • Bloodstream infection (Staphylococcus aureus septicemia )
  • Bacterial infection that causes severe diarrhea and serious intestinal conditions such as colitis (Clostridium difficile associated disease)

CMS has explained that the underlying rationale for denying reimbursement is “to strengthen the tie between the quality of care provided to Medicare beneficiaries and payment for the services provided when they are in the hospital.”  This goal is consistent with - and, in fact, mandated by - the Deficit Reduction Act of 2005 (Pub. L. 109-171), which requires the Secretary to identify certain high cost and/or high volume preventable conditions that result from inadequate hospital care and are identifiable by unique ICD-9-CM codes. 

There are two final things you should know about CMS’ latest move.  First, these new reimbursement rules will not have a direct or immediate impact on individual physicians.  Second, if you manage hospital A/R, you are prohibited from billing patients for these claims, even though they will be denied by Medicare.

Labels : CMS, Coding, Reimbursement, Medicare/Medicaid, Quality of Care


Comments:

I presently work on an Acute Care of the Elderly unit in a hospital. We have worked so hard teaching health care professionals the difference between dementia/delirium. We strive to detect early onset of delirium and/or prevent it all together. Often times, delirium is unpreventable especially in the older adult that is post-op after hip surgery. I am wondering what is the rationalle for denying delirium reimbursement and what are the guidelines/criteria? This worries me.
Thanks.

Comment by Jessica (Geriatric CNS) – May 20, 2008


You are certainly not alone in your concern regarding the reimbursement implications for Hospital Acquired Conditions (“HAC”).  Many experts have questioned the underlying presuppositions and methodologies for selecting particular conditions.  As to delirium, while CMS has acknowledged that “[t]he literature for delirium prevention studies is small, and the methodologic quality of many studies is poor,” it has nevertheless taken the position that delirium is “reasonably  preventable” and needlessly costs Medicare an average of $23,290 per incident. See Prevention of Delirium in Older Hospitalized Patients.   As such, Medicare will no longer provide hospitals additional reimbursement for the increased cost associated with delirium (or any of the other conditions designated as “hospital acquired conditions”), unless the patient is documented to have had the condition upon admission. However, it is important to note that the impact of this hospital reimbursement penalty will be limited to the approximate 3,500 acute care hospitals that receive reimbursement under the Inpatient Prospective Payment System (IPPS); this rule will not have a direct impact upon individual providers.  Note: You can Click here to listen to recent public listening sessions regarding HAC.  Also, if you want to contribute to CMS’ discussion, you can submit your comments prior to the end of the comment period and your comments will be reviewed by CMS and incorporated into the public rulemaking record.



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