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Table of Contents:
Back
By Popular Demand: Alta Practice Manager Boot Camp
Understanding Physician Reimbursement Under Medicare
Did
You Know?
Free
Educational Sessions Available
BWC
Overview
Alta Partners Tip Corner
Alta Partners Quarterly
Newsletter Benchmark
Alta Partners Calendar of Events
Let Us Hear From YOU!
BACK BY
POPULAR DEMAND:
Alta Practice Manager Boot Camp
Move over Military, this is Alta
Partners Boot
Camp!

Started as a new service to our
clients, Alta Partners introduced Practice Manager
Boot
Camp in the summer of 2007 as a new
line of training geared not to the every day Misys user, but to their
supervisor, the Practice Manager. This training is a two part course
that offers managers instructions on how to run, read, interpret, and
analyze financial and billing reports. Whether you are a new practice
manager or a seasoned veteran, these courses will help hone your
analytical skills to better manage your physician practice using our
Misys practice management system.
Session 1 will review of
all of the reports that are currently provided to Practice Managers over
the course of a year, and include detailed descriptions about how each
of the reports can be used to assess your practice’s billing performance
on a daily basis
Session 2 will be an
advanced lecture which will cover other reports the Practice Manager can
run from the office to further analyze their business (Supplemental
Client Reports)
As we did in the summer, we are
offering both morning and afternoon sessions. Because of the material
to be covered, invitations are extended to the Practice Manager and/or
Office Supervisor of our client practices only.
Boot Camp
1
Monday – March
10, 2008 (9am-11am)
Friday – March 21, 2008 (1pm-3pm)
Boot Camp
2
Tuesday – March
25, 2008 (1pm-3pm)
Wednesday – April 2, 2008 (9am-11am)
Attendance of Session #1 is
required in order to attend Session #2. ENLIST today to improve your
bottom line tomorrow!
If you are unable to attend
either of these sessions, stayed tuned to future editions of the Alta
Newsletter for information on when we will be offering these classes
again.
To register please contact Jeff
Kovacs at 440-808-3644 or email at
jpk@altapartnersllc.com.

Understanding Physician
Reimbursement Under Medicare
The
Resource-Based Relative Value Scale (RBRVS) is the prevailing model used
today to describe, quantify, and reimburse physician services. Since the
Health Care Financing Administration (HCFA) introduced the RBRVS-based
fee schedule in 1992, use of this system among commercial payors has
spread rapidly. Today, Medicare, Medicaid, and many private insurance
companies use the RBRVS to determine payment for physician services, and
many practices and institutions use relative value units (RVU’s) to
track physician productivity and evaluate job performance. But do you
know how the two work?
The
RBRVS assigns numerical values to health care services—office visits,
hospital care, procedures, etc— to quantify the relative work and cost
of these services. These units allow comparison of apples to oranges
(i.e., surgery to primary care visits) and can determine the allowable
payment for any service in any specialty.
The
main element of the fee schedule is a relative value scale, which is
comprised of three components:
-
Physician work or time component (WRVU)
-
Physician practice expense or PE
component (PERVU)
-
Professional liability insurance or PLI
expense component (PLIRVU).
Though these three main components remain constant across the country,
which makes the RVU system great for comparing productivity among
physicians, several adjustments are necessary to go from units to
payments. First, a Geographical Price Index (GPCI) for each of the
components must be factored in. This adjustment takes into account the
cost of living differences across the country. In addition, since the
Balanced Budget Act required that changes to the RVU payment schedule be
budget neutral, a conversion factor and a payment modifier amount must
be taken into consideration each year. Once all of these factors are
known, a simple formula can be used to determine the Medicare Allowable
Amount for a particular CPT code:

Although some physician specialties have seen positive changes in the
WRVU, PERVU and PLIRVU over the years, the budget neutrality factors
have tempered these changes. For example, from 2006 to 2007, commonly
used Primary Care Physician evaluation and management CPT Codes received
a considerable overall increase in WRVU value, 29%. However, the overall
payment increases that these physicians experienced were not
commensurate, increasing only 9%. (See the following graph)
A
closer comparison of how the Medicare Allowable Amount for CPT Code
99213 was calculated each year shows us the impact on reimbursement over
the past three years:

As
we can see from the illustration above, the WRVU component increased by
37%, but the RVU-GCPI, PE-GCPI
and PLI-GCPI all decreased in value, for an overall positive Medicare
Allowable variance of only 13%.
It should be noted that although this example for Primary Care
Physicians still amounted to a positive payment variance, other
specialties, such as General Surgery, actually experienced a decrease in
reimbursement.
Overall, physician reimbursement has been relatively flat since 2005.
Physicians have received well below inflation payment updates in 2004
and 2005, zero percent updates in 2006 and 2007, and a minuscule .5%
increase for the first six months of 2008. Unless Congress acts,
physicians will experience a 10.5% reimbursement decrease for the last
six months of 2008. Greater reimbursement decreases are projected well
into the future.

Congress, Administration and various Advocacy groups are at odds on
balancing physician reimbursements due to concerns that too many cuts
will result in physicians dropping from participation in Medicare at a
time when Medicare beneficiaries is at an all time high. As this debate
goes on, be sure to contact your local congress representative and ask
them to replace these looming Medicare physician payment cuts with
positive updates the truly reflect practice cost increases to ensure the
Medicare beneficiaries in the United States continued access to quality
healthcare.

Did You Know?
The Centers for Medicare &
Medicaid Services (CMS) now provides coverage
for a full range of preventive services and screenings that can help
seniors and other Medicare beneficiaries stay healthy, detect disease
early, and manage conditions to reduce complications.
Approximately three
years ago, CMS determined there was adequate evidence to conclude that
smoking and tobacco-use cessation counseling, based on the current U.S.
Public Health Service Guideline, is reasonable and necessary for certain
individuals and should be covered by Medicare. Effective for services
performed on or after March 22, 2005, Medicare has provided coverage of
two levels of counseling for smoking cessation (intermediate and
intensive). Medicare now provides coverage of smoking and
tobacco-use counseling for beneficiaries who meet one of the following
criteria:
1. Use
tobacco and have a disease or an adverse health effect that has been
found by the U.S. Surgeon General to be linked to tobacco use
2. Are
taking a therapeutic agent whose metabolism or dosing is affected by
tobacco use as based on Food and Drug Administration-approved
information.
Still not widely known by
physicians, Medicare will cover two cessation attempts per
year. Each attempt may include a maximum of four counseling
sessions. The total annual benefit covers up to eight
smoking and tobacco-use cessation counseling sessions in a 12-month
period. The beneficiary may receive another eight counseling
sessions during a second or subsequent year after 11 full months have
passed since the first Medicare-covered cessation counseling session was
performed. Intermediate and intensive smoking cessation counseling
services will be covered for outpatient and hospitalized beneficiaries
who are smokers and meet all coverage requirements as long as those
services are furnished by qualified physicians and other
Medicare-recognized practitioners.
Until recently, these counseling
sessions were billed using temporary codes created in March 2005, G0375
and G0376. These codes are now deleted. The codes that will replace
these codes are 99406 (smoke/tobacco counseling, 3-10 minutes,
reimbursed at $12.13) and 99407 (smoke/tobacco counseling, >10 minutes,
reimbursed at $23.12). For these services, if the counseling occurs
during a separately identifiable Evaluation/Management visit, it should
be billed with a 25 modifier.
For more information about
coverage, coding, billing, and reimbursement of Medicare-covered
preventive services and screenings, visit:
http://www.cms.hhs.gov/MLNProducts/35_PreventiveServices.asp

Free Educational Sessions
Available
Founded by healthcare veterans
and a team of committed employees, Alta Partners offers a unique,
firsthand understanding of the business side of healthcare that stems
from our extensive experience in physician billing and practice
management. Working in partnership with our clients, Alta Partners
dedicated, knowledgeable personnel navigate the increasingly complex
billing environment to help streamline billing processes. In addition,
our practice management expertise allows us to understand how billing
and practice operations interact in order to realize full billing
effectiveness.
Alta Partners would like to
share our knowledge with you. As a new service in 2008, we have
developed an educational series that we are offering physician staffs
and practice managers. The series includes the following:
- Practice
Operations
- Billing and Coding
- Financial Analysis
- Internal Controls
- Physician
Benchmarking
- Physician
Compensation- Performance Based Models
- Practice
Management Tools and Tips
- Developing a
medical practice- 101
If you are interested in
learning more about one of these subjects, or scheduling an educational
session, please contact Michael Moran @ 440-808-3649 or
mjm@altapartnersllc.com.

BWC Overview
In
an effort to improve the efficiency which you process Bureau of Worker’s
Compensation (BWC) claims, Alta Partners is proud to present a
Bureau of Worker’s Compensation / Occupational Health Overview.
The target audience for these classes is any office staff member whose
responsibilities include the important first steps of the BWC claims
process.
During these two hour sessions,
Alta’s staff BWC experts will walk participants through the BWC claims
process, to include but not limited to the following:
- Properly entering
patient claim information into the Optimum billing system.
- General BWC
guidelines
- State Insured BWC
program specifics
- Self Insured BWC
program specifics
- First Report of
Injury (FROI)
- C9 authorizations
- The differences
between Third Party Administrators (TPA’s) and Managed Care
Organizations (MCO’s)
- MCO contact
information
Classes will be offered on
the following days:
February 22, 9AM – 11AM
February 29, 9AM – 11AM
March 5, 1PM – 3PM
Class space is limited and will
be offered on a first come first serve basis. Sign up early and begin
working towards becoming an EXPERT in the first steps of
the BWC claims administration process!
To register please contact Jennifer
Negulescu @ 440-808-3712 or email
jnn@altapartnersllc.com.

Alta Partners Tip Corner:
Searching for an existing patient
account? Creating a new patient account? The data base in the MISYS
system is a shared data base for all our clients. A new patient in one
office could be an existing patient in another office. Performing a
proper account search for each patient will save each office both time
and money. Additionally, it is much easier to locate an existing
patient account and just attach your office information to the account
than it is to create a new account.
There are several ways to perform a
proper patient search. Keep in mind that when searching for a patient
account or creating a new patient account you must use the correct name
on the insurance card, not nicknames or abbreviated names. (i.e. Joseph
not Joe, Deborah not Debbie) Pediatric offices need to be especially
careful when searching for newborn accounts. Newborn accounts are
sometimes created with the last name of the mother and the first name as
“baby boy” or “baby girl”, because the child may not have been named
prior to the OB office submitting the bill for their services.
An additional problem that is
encountered with parents and children occurs when a parent who has a
child in the system, subsequently becomes a patient. Instead of
creating a new account for the parent, the Responsible (R) accounts and
/ or Subscriber (S) accounts should be changed to a Patient (P)
account.
When searching for an account many
fields can be used; first and last name, social security number or date
of birth. The most common field is the first and last name. When you
enter the last name, we recommend that you only put in three letters of
the last name with an asterisk (Smi*) and two letters of the first name
with an asterisk (Ja*). From this, you should get a comprehensive list
with all patients who have this combination of letters in their names (Smi*Ja*).
To select the correct patient from this list, scroll down through the
patient names for the correct date of birth. The date of birth can also
be added to the first and last name search if the last name is a real
common name. It is important to remember that some of the Responsible
accounts and Subscriber accounts do not have the date of birth or social
security number listed on the account, so be careful to pick the right
patient in such instances.
Although proper account maintenance
will save each office both time and money, probably the biggest benefit
from this process is that experienced by the patient. By only having
one account in the system, each patient will only receive one statement,
with all recent activity, no matter what the office, on that statement.
With one statement, there is less patient confusion and the patient
tends to pay their outstanding account balances in a more expedient
fashion.
Accidents will happen and there will be
times when duplicate accounts will be made and found after the fact. If
a duplicate account is made, continue to complete the merged log sheet
that we have supplied each office (Date of submission, group number,
completed by, patient name, patient date of birth, and account number
with current information and duplicate account numbers). Once complete,
please fax the log to Alta Partners @ (440) 808-3676.

We recommend that the merge log be
completed on a weekly basis, even if there is only one account that
needs to be merged. That way all of us will have access to an up to
date database on a regular basis, causing less work for us all. For
questions or comments about merged accounts or for a copy of the merge
log, please contact Brenda Izold @ 440-808-3711.

Alta Partners Quarterly
Newsletter Benchmark:
This chart shows the average
charges for common office / outpatient visit codes 99211 through 99215
and compares them to the Medicare Allowable amount for Ohio for 2005 and
2006. The average charge is based on how many times the code was billed
and the total charges submitted to Center for Medicare and Medicaid
Services (CMS). As you can see, the average provider charged between
142% and 170% of the Medicare Allowable amount for these CPT codes
during these years. Is your fee schedule set as such? If not, you may
be leaving important dollars on the table.


Alta Partners Calendar of Events
As a new feature
to our quarterly news letter, Alta Partners has begun publishing a
calendar that will keep you up to date with our educational sessions and
remind you of important dates for your business. Remember to keep an
eye out for this feature in each newsletter!
Feb/March
April


Let Us Hear From YOU!

We’d love to hear back from you and work to make this
communication as interactive as possible. Have an idea for
an article or topic that you think would be good to put into
our newsletter? Send us an email with your topic. Be as
specific as possible. If we use it in an upcoming
E-Newsletter, we’ll give you a $50 gift certificate for your
contribution.
Email your ideas
to Michael Moran @
mjm@altapartnersllc.com.
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