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Health Care Reform: Chaos From Order

Posted by J. Paul Spencer, CPC, CPC-H in Industry Updates

I had an interesting visit in my cubicle this week. My CEO stopped into my occupational man-cave to tell me that my blog posting content was good lately. He’s a very busy man, so I appreciated the visit and the input.

There was one part that I left out when discussing this and other issues with him. There are some days when I really have a hard time trying to explain the ins and outs of the American health care system. There’s a part of me that believes that with regard to this topic, the ability to write about it is some type of penance for something I did in a past life. What sick and depraved part of my being keeps getting excited about attempting to explain chaos? I’d rather talk about things that make sense to me, such as the purity of the perfect sandwich, economy cars or ice hockey. Instead, I am entrusted with medical delivery in the United States.

This past week, it became clear that this chaos is about to get worse.

On the legal front, The Supreme Court, which at one time in the distant past was concerned much less about the rights of corporations, announced that it will hear legal challenges to the Affordable Care Act in the opening weeks of November. The thrust of the challenge goes to the Act’s mandate to individuals to purchase health insurance coverage. The ruling, which will more than likely occur in the Spring (just in time to become a Presidential campaign issue) should be interesting. The Court, in its current ideological construct, is pro-business and anti-government. So, how do they rule against a government mandate when the biggest financial beneficiary of the Act is the insurance industry, which we can all agree represents a big business? Get ready for some of the most twisted logic ever committed to paper when the Court releases its ruling. I recommend some type of release valve be installed in your skull prior to that time to prevent the sudden explosion of your head.

PPACA’s life span is a good lead-in topic to the next bit of news that’s slowly coming forth. In the current budget crunch, individual states are beginning to restrict the number of total days per year that Medicaid recipients can be hospitalized. The latest state to vote for such a restriction is Hawaii, which beginning in April 2012 will restrict the number of days to 10. This is the lowest number yet enacted on the state level.

Here’s where policies like this lead. The sickest Medicaid patients, who also double as the poorest residents of the states in which there is a cap, are billed for the unpaid portion of their hospital stay. These bills goes unpaid because the problem isn’t solved by the patients cancelling their country club memberships or selling their cars, as they don’t possess these things. At the end of the process, the hospital eats the bill because they are in the business of admitting people to their facilities who are sick. Hospitals will turn around and shift costs to private health plans, which in turn pass off the costs to insured patients in the form of premium increases. Depending on the dent the new premium places on the healthy privately insured patient, the healthy person may decide to let his or her coverage lapse, which increases the premiums that much more for those who keep their coverage. If the hospital can’t shift the costs, especially a hospital in a rural area, the hospital faces closure.

Remember that at the root of PPACA is an expansion of state Medicaid programs to a higher percentage of the population. On the brink of millions more qualifying for this type of coverage, Medicaid will stop paying for your care after a pre-determined utilization threshold is reached. You barely qualified for your new coverage based on economic factors and now, your coverage stops. This Bill’s for You!

I’m what I would consider a fairly sentient being. I can make sense out of virtually anything. If I can’t make sense of something, such as artichokes, speed limits or baseball’s balk rule, I’ll at least make the attempt. With regard to America’s health care system, I’ve come to a decision. If the world is ever invaded by aliens, in the absence of enough advanced weaponry, I’ll fight off the invasion by explaining the American health care system to them in detail. All it really takes to destroy someone is to introduce an idea too complex to be comprehended and then watch their will and spirit collapse from within in an attempt to understand. Our health care system provides that opportunity amply.

Now, where did I put that skull valve……

The Wacky Week in Review

Posted by J. Paul Spencer, CPC, CPC-H in Industry Updates

I entered the modern world of the smart phone a few months ago. Upon showing the phone to friends of mine, one associate introduced me to an application that can be added to the phone that has the ability to play every free radio station in the world through my phone. I have been making great use of this app on a daily basis, from BBC radio broadcasts, to music stations in New Zealand to sports radio out of Canada. I now wonder what I ever did without it.

In listening to foreign news services, I have gotten a sense of how poorly regarded the American health care system is outside of our borders. There’s nothing like a fresh perspective to clean the slate and begin anew. Yet there is news that hits my desktop on a weekly basis that shows me that maybe the foreign news services have a point. This week, I have two examples, and these are keepers.

First, we travel to Washington, DC for a Senate Finance Committee hearing on combating health care fraud. Daniel Levinson, the Inspector General for Health and Human Services, presented testimonyat the hearing on the OIG’s efforts to combat healthcare fraud. A majority of the nine pages of testimony focuses on successes with the many anti-fraud initiatives currently taking place, but all of their efforts are focused on the provider community. Thanks to the miracle of the search-enabled PDF document, I typed in the word “contractors” to see how many times the word appears in the document. The answer is one, and that was in relation to recommending that edits be put into place to identify claims on the front end.

I would submit that there is a very big difference between a recommendation and an obligation. If we are all in agreement that the “pay-and-chase” model doesn’t work with respect to combating fraud, then it is at this point that the Medicare Administrative Contractors (MACs) be forced to implement front-end edits to avoid the patterns of aberrant payments the Medicare program has experienced for decades. If the MACs refuse or do not follow a set timetable for implementation, it’s time to either find new MACs or bring claims adjudication in house. Simply “recommending” front end edits is the equivalent of “suggesting” that someone shut off the main water supply in a house that has flooding up to the second floor.

For our second and final example, we travel to Oceanside, California and the monthly board meeting of Tri-City Hospital. At their latest meeting on February 24th, a member of their own board, who in the past has been censured six times in the last six months for verbal outbursts and disruptive behavior, injured two security guards while attempting to crash the meeting. Based on her past patterns of abusive behavior, including referring to everyone on the board as “Nazis”, the board member in question has been barred from actually being in the meeting room during board meetings, as part of her past reprimands state that she must be in another room and can only communicate with the other board members via speakerphone. This same board member is also under indictment for felony bribery charges related to her board position. The members of the board are now considering obtaining restraining orders against her for future meetings.

In a country with 15.9% true unemployment and a plentiful supply of qualified candidates for just about any position, what does it take to get fired in today’s society? We like to think that board members of our local non-profit hospital are working on quality of care and related cost issues. At the point where they are injuring security guards, can’t anybody dig up a box of pink slips and fill one out? More to the point, how did someone so apparently unhinged end up on a hospital board in the first place? Whoever wrote that recommendation needs to have all of his/her writing implements repossessed.

Since the passage of PPACA almost a year ago, several sources, either informed or uninformed, have offered their opinions about what works best for the healthcare system in the United States. I’d like to submit that perhaps a good starting point would be removing the incompetent and loony from decision-making positions throughout the healthcare delivery and payment system. If CBS can cancel Charlie Sheen’s show, then anything is possible. Then one day, we could all be….WINNING!