Medicare Blog

why are there so many medicare denials for palliative care consults

by Aubrey Hill Published 1 year ago Updated 1 year ago

Because they are not a distinct benefit under Medicare, palliative consults are typically billed as regular nursing home visits (under Medicare Part B). That degree of remuneration for providers — often affiliates of hospice organizations — is not enough to have made the service widespread, Miller said.

Full Answer

What causes rejection and denial of Medicare claims?

You may be surprised to find out that the top rejection and denial reasons are caused by work flow failures within the practice. It is easy to want to blame Medicare out of frustration, but many times it is little things that prevent a practice from being paid in as few as 15 days from the time a claim is submitted.

Why is palliative care so hard to find?

Home hospice is inconsistently available, and very few countries have enough palliative care specialists to meet their current workforce needs, let alone meet anticipated future needs. In less developed health care systems, there may be additional administrative barriers to delivery of palliative care, particularly around access to opioids.

How many hospitals in the US do not have palliative care services?

Nearly one-third of US hospitals with more than 50 beds do not have any palliative care service.7A recent article described care patterns in the single largest US health care system (the Veterans Health Administration) in 2012.

Why are people reluctant to accept specialist palliative care referrals?

Reluctance to accept a referral for specialist palliative care on the part of the patient and family can vary from one culture to another, but there are common threads to this hesitation, namely, the association of palliative care with dying.

What are the potential barriers that may interfere with the palliative care referral for this patient?

Lack of availability (22%), lack of timely access (20%), fear of increasing length of hospital stay (11%), and prior inpatient conflict with the palliative care team (11%) were not seen as significant barriers by most respondents.

What are some of the barriers to obtaining palliative consultation in the critical care areas?

Still, many patients are not offered the opportunity to receive a palliative care consultation. Barriers to palliative care consultation for patients in critical care units include misunderstandings about palliative care and not having agreed upon criteria for referral.

What are the barriers to accessing palliative care?

Ignorance and Lack of Awareness of Resources Students and residents infrequently have access to palliative care rotations, and the paucity of palliative care teaching in many medical school and residency programs makes it difficult for physicians to understand what happens in a specialist palliative care setting.

What are the potential barriers an individual may face when accessing end of life care?

The three main barriers that prevent many people from accessing appropriate high-quality care at the end of their lives include:Inadequate Quality of Care. - Inconsistency in care standards and inappropriate hospital admissions. ... Identification and Planning. ... Inequality of Access.

Why palliative care is insufficient?

The lack of effective palliative care has many causes, including the lack of integration of palliative care into most health care systems, the inaccessibility of hospice care, ignorance of methods of palliative care, difficulties in obtaining narcotics, cultural and religious beliefs of the patient and family, and the ...

What is the biggest barrier to quality palliative and end of life care?

cultural and social barriers, such as beliefs about death and dying; misconceptions about palliative care, such as that it is only for patients with cancer, or for the last weeks of life; and.

What are the 5 principles of palliative care?

Overview.Principles.Intended outcomes.Essential components.—1. Informing community expectations.—2. EOL discussions and planning.—3. Access to care.—4. Early recognition.More items...

What are the 3 forms of palliative care?

Areas where palliative care can help. Palliative treatments vary widely and often include: ... Social. You might find it hard to talk with your loved ones or caregivers about how you feel or what you are going through. ... Emotional. ... Spiritual. ... Mental. ... Financial. ... Physical. ... Palliative care after cancer treatment.More items...

Why do doctors recommend palliative care?

It provides relief from the symptoms and stress of a serious illness. The goal is to improve quality of life for both the patient and the family. Palliative care is provided by a specially-trained team who work together with your other doctors to provide an extra layer of support.

What is the biggest barrier to accessing hospice care?

The highest ranked barriers were primarily “physician factors,” which included physician desire to attempt additional lines of chemotherapy and difficulty accurately predicting patient death to within six months.

Is palliative care end of life care?

Palliative does encompass end-of-life care, but it is so much more. Palliative care involves treatment of individuals who have a serious illness in which a cure or complete reversal of the disease and its process is no longer possible.

What is a good death in end of life care?

A good death is “one that is free from avoidable distress and suffering, for patients, family, and caregivers; in general accord with the patients' and families' wishes; and reasonably consistent with clinical, cultural, and ethical standards.”

Why do people hesitate to refer to palliative care?

Reluctance to accept a referral for specialist palliative care on the part of the patient and family can vary from one culture to another, but there are common threads to this hesitation, namely, the association of palliative care with dying. “Magical thinking” is the idea that avoidance of talking about death will allow avoidance of death itself or that discussing death may bring “bad karma.” Patients may also not want to upset their regular doctor, thinking that their doctor will see them as giving up or worry that they may have disease-controlling treatment withdrawn. There may also be separation anxiety, with reluctance to lose a valued relationship with their familiar team.

Who provides palliative care?

Integration is not easily defined or measured as a basic level of palliative care can often be provided by family doctors/general practitioners, nurse practitioners, or specialists in other areas of medicine and may entirely meet the patient’s and family’s needs.

Why is palliative care important?

A palliative approach to care is particularly important when the prognosis of the patient is uncertain, and survivorship is a possibility. Hospice Care. Hospice care is care that focuses on relieving symptoms and supporting patients with incurable illnesses who have a life expectancy of weeks to months.

What is hospice care?

In some settings, hospice refers to a freestanding residential care facility for people in the last weeks of life, whereas in other settings the word is used to describe end-of-life care delivered anywhere, especially in the home (home hospice).

When to initiate referral for palliative care?

Triggers to refer can be activated automatically when transitions in care are documented (eg, on detection of metastases in cancer care) or by expression of distress recognized through use of screening tools. As distress can occur any time in the course of illness, screening should occur regularly from the time of diagnosis. Prompt referral for specialist palliative care support should be made at any time when physical, social, psychological, or spiritual unmet needs are not able to be satisfactorily resolved by the primary caring team (which may include a variety of specialists as well as family medicine/general practice), including when the goal of disease management is curative in intent.

When should palliative care consultation be considered?

Specialist palliative care consultation should be considered either when the patient’s or family’s needs exceed the competence and confidence of the primary team or when it is required to access certain services. The proportion of patients and families needing specialist palliative care will vary from place to place depending on the skills and resources available through primary care. In an ideal world, all health care professionals’ training would include basic palliative care competencies, but in reality this has yet to happen, so the threshold for specialist referral is appropriately quite variable. Recognition of when the point of unmet need occurs can be difficult, especially where there is no routine screening for unmet needs. Discretionary referral alone cannot be relied on to provide a timely and appropriate referral practice.

When is palliative care needed?

Contrary to what many people believe, modern palliative care can be provided alongside treatments targeting the underlying disease and may be needed from the time of diagnosis. Similarly, treatments targeting control of disease may be required alongside palliative care, right up to the time of death.

What are the reasons for Medicare denials?

Ten Reasons for Denials and Rejections. The following are ten reasons for denials and rejections: 1. The claim was submitted to the wrong contractor or payer, an error which is frequently associated with new Medicare advantage programs. For instance, a claim was sent to Traditional Medicare when it should have been sent to Railroad Medicare.

Why is my Medicare denial so bad?

You may be surprised to find out that the top rejection and denial reasons are caused by work flow failures within the practice . It is easy to want to blame Medicare out of frustration, but many times it is little things that prevent a practice from being paid in as few as 15 days from the time a claim is submitted. So if you are experiencing Medicare payment delays, the reason may be one of a number of issues that happened on the practice’s end. Through good medical billing denial management, the problems can be avoided in the first place.

What is revenue cycle denial management?

Revenue cycle denial management is a term that has become rather abused in the medical billing world. Some use the term to describe a method of addressing claims that have been denied for a medical procedure or treatment. Others have used the term to describe how some information is tracked for a particular payer, place of service, or set of procedures. Still, there are some that try and use the term to describe what they do every day in a physician’s office.

What is missing from billing operations that are troubled?

All in all, what is missing from billing operations that are troubled is the lack of management-reporting so that data can be extracted in a meaningful way. Couple that with a lack of methodical and measured billing processes and there is no way to know what is wrong in order to correct the mistakes. By having your billing practices reviewed and audited by consultants, you can identify issues so that you can hang on to any revenue that you are losing.

How many reason codes does Medicare use?

Did you know that Medicare has over 200 reason and remark codes that they use every single day when they are adjudicating claims?

Is a patient ID valid?

The patient ID is not valid. 3. There is another insurance primary. 4. The patient name or date of birth does not match the Medicare beneficiary or Medicare record. 5. The primary payer’s coordination of benefits is not in balance. 6. There is only Part A coverage and no Part B coverage.

What percentage of hospital census uses palliative care?

A commonly quoted figure is that 5% of the hospital census will use palliative medicine services (excluding maternity and psychiatry patients) and some literature supports up to 20% of inpatients will utilized palliative medicine. However, there is danger is just using a flat percentage of the hospital census. For example, patients in observation status rarely require palliative medicine. These are patients who are technically outpatients but who spend 1-2 days in the hospital, often for evaluation of symptoms such as chest pain, syncope, or vomiting. Although many times these patients may have underlying diagnoses that warrant care by a palliative medicine specialist, this care is often better provided in an outpatient office setting due to their short stay in the hospital. Therefore, a hospital that has a high percentage of observation status patients will have less overall utilization of inpatient palliative medicine services.

What is the Medicare code for palliative care?

Ever since Medicare eliminated consultation codes a few years ago, all consultants now have to bill an inpatient new visit (CPT 99221, 99222, or 99223) rather than a consult code. Most initial palliative medicine visits will be 99223, for which Medicare pays $200 (99222 pays $136). CPT 99223 consists of 5.73 total RVUs (3.86 work RVUs, 1.58 expense RVUs, and 0.29 malpractice RVUs). Therefore, the amount of money to go toward a physician’s salary from a new patient level 3 visit is about $135 (3.86 wRVUs x $35/RVU Medicare conversion rate). Lets say you do your survey of the need for palliative medicine services and you determine that working Monday through Friday, there would be an average of 3.8 palliative medicine consults per weekday and lets further assume that the palliative medicine physician works 46 weeks a year (assumes 3 weeks of vacation, a week of CME, and 2 weeks of holidays per year). That means that the palliative medicine physician will generate $118,000 toward salary + benefits from initial consults alone.

How does palliative care help?

A meta-analysis of palliative care consultation in the ICU in the Journal of Intensive Care Medicine in 2016 showed that palliative care reduced the ICU length of stay and reduced the ICU costs by $1,100. A recent meta-analysis in the journal Palliative and Supportive Care showed that whereas there was a slight increase in total hospital length of stay by 0.19 days by bringing in a palliative care service, there was a 34% decrease in inpatient mortality. In a study of 2 academic medical centers published in the Journal of Palliative Medicine, the authors found that palliative medicine reduced hospital costs by $2,141 per patient for those patients with lengths of hospital stay < 7 days and by $2,870 per patient for those patients in the hospital for > 7 days. In a study from the Journal of Palliative Medicine from a single large urban academic medicine center, palliative medicine consultation in the hospital resulted in a reduction in 30-day readmission rate from 15.0% to 10.3%.

How to estimate the demand for palliative care?

One way of estimating the demand for palliative medicine consultation is to survey your inpatient services. The best way to do this is to take a “snapshot” of the demand on any particular day. To do this, pick a typical day and contact each hospitalist and admitting physician on that day to ask: “Hypothetically, if there was palliative medicine consultation today, how many of your patients would warrant palliative medicine services?”. Then check to see what each of these physicians’ hospital census is at that moment. In a typical community hospital, most of the patients who would warrant palliative medicine services will be medical (as opposed to surgical) patients. In a tertiary care hospital that has a lot of subspecialty surgical services (such as burn, trauma, surgical oncology, or thoracic surgery), this may be different. Next, take the total number of patients who would warrant palliative medicine services on that particular survey day and divide by the average length of stay – most hospitals will track medical and surgical patient length of stay separately so if all/most of the patients who are identified as potentially benefiting by palliative medicine are medical patients, then use the medical patient length of stay. This will give you the average number of new palliative medicine consults per day that you can expect. If you anticipate that you will only have routine palliative medicine consultation on weekdays, then multiple your number by 1.4 to estimate the number of new consults per day given a 5 weekday work week.

How many palliative care consults are needed in a year?

Adding all of these together, to have a robust palliative medicine service with a physician, a nurse practitioner, and a social worker, the hospital would need to have 124 palliative medicine consults per year in order to break even.

How much can you take out of a palliative care fund?

You can take about 5% out of a development fund per year and still keep that fund running in perpetuity without running out of money so once your palliative medicine fund reaches $2.25 million, you can cover the hospital’s subsidy costs to pay for your palliative medicine physician. Thus, a palliative medicine service is a long-term hospital investment: each year you have palliative care, your development donations add up and eventually your investment pays off.

Why would a hospital want to have palliative care?

After reading this analysis so far, you might wonder why any hospital would want to have palliative medicine? The physicians can’t cover their salary, they don’t bring any new admissions to your hospital, and they don’t bring in high value surgical cases. It may seem like all that they bring is additional costs. The real benefit of palliative care lies beneath the standard Profit and Loss Statement. The value of palliative medicine lies in the intangibles.

Why are Medicare claim denials not a consequence of contractors actions?

Claim denials weren't the only consequence of the Medicare contractors' actions. In order to avoid the possibility of non-payment, some providers would direct patients in need of rehab to skilled-nursing facilities, where regulatory standards are lower and the therapy is less intensive, Stein said.

How much did Medicare spend on rehabilitation in 2015?

In 2015, Medicare spent $7.4 billion on fee-for-service inpatient rehabilitation facility care provided in about 1,180 such facilities nationwide, according to the Medicare Payment Advisory Commission. About 344,000 beneficiaries had more than 381,000 inpatient rehab facility stays. Medicare accounts for about 60% of IRF discharges.

Why is Post Acute Medical losing money?

Pennsylvania-based Post Acute Medical has lost hundreds of thousands of dollars due to rejected Medicare claims because of a matter of mere minutes. Claims are rejected if patients miss just minutes of their minimum time for daily inpatient rehabilitation therapy. Medicare pays for the therapy if beneficiaries participate at least three hours a day.

Does Medicare pay for inpatient rehab?

Medicare pays for the therapy if beneficiaries participate at least three hours a day. But Post Acute Medical, a long-term acute-care facility operator, sees Medicare deny 20% to 25% of its inpatient rehab claims when patients miss that threshold by just minutes. "Claims denied solely on therapy minutes don't take into consideration ...

Can Medicare deny claims?

Often when patients missed the time standard they would make it up on a subsequent day, but Medicare contractors would deny claims anyway, Smith said.

Do recovery audit contractors have an incentive to deny claims?

"Inherently it's a conflict of interest as (the CMS) has established a situation where they're benefit ing from denying claims, and that worries me.".

Has the denial of a patient's therapy been overturned?

Many of the denials that have occurred for a patient missing a few minutes of therapy have been overturned on appeal , according to Jane Snecinski, president of Post-Acute Advisors, a consulting firm. Giving the repeal backlog now plaguing administrative law judges, the new guidance may be an effort by CMS to relieve the burden on providers of appealing denied claims, Snecinski said.

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