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April 27, 2011

Wisconsin DHS Releases Memo on Nursing Home Transfer and Discharge Protections

Filed under: Patient Care IssuesMeghan O'Connor @ 1:23 pm

The Wisconsin Department of Health Services (DHS) Division of Quality Assurance (DQA) released on April 26 a memo to remind nursing home providers of the protections afforded to residents going through a transfer or discharge process. The memo clarifies the nursing home requirement for informing residents of their appeal rights to DHS.

DHS released a sample Discharge Notice and Notice Before Discharge with the memo. The documents, developed in coordination with the State of Wisconsin’s Board on Aging and Long Term Care, provide information regarding the contents and timing of the notice as well as directions for completing the Discharge Notice.

The memo and supporting documents outline the notice requirements:

  • Every facility is required to provide reasonable advanced written notice of any planned discharge to every resident;
  • With limited exceptions, written notice should be made at least 30 days before the resident is to be discharged;
  • The notice must state the reason for discharge, and the reason must meet restrictive state and federal rules regarding involuntary discharge;
  • The notice must state the location to which the resident is to be discharged because the nursing home may not involuntarily discharge a resident unless an alternative living arrangement is arranged;
  • The notice must state the effective date of discharge;
  • The notice must inform the resident of the right to appeal the discharge decision and explain how to appeal the decision. The nursing home may not discharge a resident, who has appropriately filed a written appeal, until after the DQA has completed its review and notified both the resident and facility of its decision; and
  • The notice must provide the contact information (i.e., name, address and phone number) for the nearest office of the DQA and for either the Ombudsman program (for residents over age 60) or Disability Rights Wisconsin.

To view the memo or its supporting attachments, please follow this link.

April 13, 2011

New Americans With Disabilities Act Developments

Filed under: Labor & EmploymentSarah Platt @ 10:55 am

Final Rules Implementing ADA Amendments Act Shift Focus From Definition of Disability to Employers’ Obligation to Accommodate

Employers must now follow the EEOC rules implementing the ADA Amendments Act because they have now been published in final form. The rules shift the focus of the ADA from whether an individual is disabled to whether an employer has discriminated or failed to reasonably accommodate an employee. The commentary to the rules estimates that 12 to 38 million people who were not covered by the ADA before will now be covered. There has been a notable increase in disability claims since the ADA Amendments Act was passed.

Read more…

April 12, 2011

HHS Announces a New Partnership to Improve Quality

Filed under: Patient Care IssuesMeghan O'Connor @ 12:40 pm

The Secretary of the U.S. Department of Health & Human Services (HHS) announced today a new partnership between HHS, the private sector, patient safety advocates, hospitals and physicians to improve patient care and reduce medical errors. Secretary Sebelius announced that the new initiative, titled the Partnership for Patients (Partnership), has the potential to save up to $35 billion in health care costs, including $10 billion for Medicare.

At the foundation of the Partnership, HHS will invest $1 billion in federal funding from the Affordable Care Act in order to meet two goals by the end of 2013:

  1. Keep patients from getting injured or sicker – Reduce preventable injuries by 40%, resulting in approximately 1.8 million fewer injuries to patients and more than 60,000 lives saved; and
  2. Help patients heal without complication – Reduce preventable hospital readmissions by 20%, resulting in 1.6 million patients recovering from illness without suffering a preventable condition requiring re-hospitalization within 30 days of discharge.

The Community-based Care Transitions program will receive $500 million of the funding. The Centers for Medicare & Medicaid Services (CMS) Innovation Center will provide up to $500 million more in funding to support new demonstrations related to reducing hospital-acquired conditions (HACs).

More than 500 hospitals, as well as physicians, nurses groups, consumer groups and employers have pledged commitment to the Partnership, including the National Association of Public Hospitals and Health Systems, American College of Physicians, American Hospital Association, American Medical Association, Association of American Medical Colleges, Mayo Clinic, National Patient Safety Foundation, American Academy of Pediatrics and The Joint Commission.

The Partnership will begin by asking hospitals to focus on nine types of medical errors and complications, including preventing adverse drug reactions, pressure ulcers, childbirth complications and surgical site infections. The CMS Innovation Center will also help hospitals develop and adapt evidence-based care improvement programs. Community-based organizations and acute care hospitals that partner with community-based organizations can begin submitting applications for this funding. The Community-based Care Transitions program and the CMS Innovation Center will award funding on an ongoing basis as funding permits.

More information about the Partnership may be found by following this link. The press release regarding the Partnership may be found by following this link. A fact sheet on today’s HHS announcement may be found at the following link. For information about the Community-based Care transitions program funding, please follow this link.

April 7, 2011

Federal Register Publishes Proposed “Shared Savings Program” Rules

Filed under: Legislation Watchvon Briesen @ 2:25 pm

The proposed rules for ACOs known as the “Shared Savings Program” were published in today’s Federal Register.

Enforcement Grace Period for New Internal Claims and Appeals Procedures Extended

Filed under: Compensation and BenefitsKenneth and Alyssa Dowse @ 11:26 am

The Patient Protection and Affordable Care Act (“PPACA”) revised the standards that all non-grandfathered group health care plans must meet regarding their claims and appeals procedures.  In July 2010, the Departments of Health and Human Services, Treasury, and Labor issued Interim Final Rules explaining PPACA’s revised standards.  The Interim Final Rules modified, clarified and expanded the internal claims and appeals procedures that were already applicable to health plans that are covered by the Employee Retirement Income Security Act (“ERISA”).

The new standards set forth in PPACA and the Interim Final Rules technically became effective on September 23, 2010.  However, in order to give plans time to implement the more burdensome new standards, the Department of Labor (“DOL”) created an enforcement grace period with regard to some (but not all) of the new claims and appeals procedures.  Under the original enforcement grace period, the DOL said it would not enforce these new standards until July 1, 2011, as long as plans work in good faith to implement them.

On March 18, 2011, the DOL announced that it intends to modify the standards covered by the original enforcement grace period based on feedback received regarding the Interim Final Rules.  Thus, rather than enforce rules that will most likely change, the DOL extended the enforcement grace period, as shown in the table below.  In addition, the DOL removed the requirement that plans work in good faith to implement the standards covered by the grace period.

The chart on the following page summarizes the new internal claims and appeals standards required by PPACA, as well as the dates by which group health plans must comply with such standards.

Read more…

Is Your Retirement Plan in Need of a Spring Cleaning?

Filed under: Compensation and BenefitsTim McDonald and Alyssa Dowse @ 11:22 am

The Internal Revenue Service (the “IRS”) recently issued a list of retirement plan items that employers should review this year. This Update briefly highlights those items and provides you with useful resources for proper operation of your retirement plan.

Is Your Retirement Plan Right for Your Business?
An employer should review its retirement plan periodically to determine whether that plan remains suitable given the employer’s objectives.

Employers sometimes adopt retirement plans that prove to be overly complicated given the employer’s budget, the nature of the employer’s workforce, etc. For example, we recently helped a small non-profit organization unwind its defined benefit retirement plan. Given the organization’s objectives and budget and the nature of the organization’s workforce, the plan was too complex and costly to administer. The organization replaced that plan with a new defined contribution plan that (i) is much easier for employees to understand, (ii) is much less costly to administer, and (iii) provides the organization with needed funding flexibility.

Read more…

April 6, 2011

CMS Releases Data on Hospital Acquired Conditions

The Centers for Medicare & Medicaid Services (CMS) released data today about hospital acquired conditions (“HACs”) at more than 4,700 hospitals. HACs are defined in Section 5001(c) of the Deficit Reduction Act of 2005 as those conditions that are:

  1. High cost or high volume or both;
  2. Result in the assignment of a case to a diagnosis-related group (DRG) that has a higher payment when present as a secondary diagnosis; and
  3. Could reasonably have been prevented through the application of evidence-based guidelines.

CMS’ press release notes that HAC rates, reported as number of HACs per 1,000 discharges, will provide “important clues about the state of patient safety in American’s hospitals,” including how often potentially life-threatening events take place. The data provides the number of HACs at each of the hospitals that occurred for Medicare fee-for-service patients between October 2008 and June 2010.

In the fiscal year 2011 Inpatient Prospective Payment System Final Rule, CMS selected eight HACs for reporting:

  1. Foreign object retained after surgery
  2. Air embolism
  3. Blood incompatibility
  4. Pressure ulcer stages III and IV
  5. Falls and trauma
  6. Vascular catheter-associated infection
  7. Catheter-associated urinary tract infection
  8. Manifestations of poor glycemic control

The Hospital Compare website with HAC data may be found by following this link. The CMS April 6 press release may be found by following this link, and the CMS Medicare Fact Sheet on HACs may be accessed here.

CMS/OIG, FTC/DOJ and IRS Weigh In on ACOs

“The Administration has led an unprecedented, collaborative effort among all of the agencies responsible for developing guidance for ACOs,” said FTC Chairman Jon Leibowitz. “This guidance will help ensure that ACOs meet their goals of improving quality and lowering costs while minimizing the regulatory burden on healthcare providers.”

As the Chairman notes, the agencies responsible for development and oversight of Accountable Care Organizations (“ACOs”) issued on March 31, 2011 guidance regarding qualification and implementation of Medicare Shared Savings Programs. This Update provides summaries of the proposed rules offered by the Centers for Medicare & Medicaid Services (“CMS”)/Department of Health and Human Services Office of Inspector General (“OIG”) and Federal Trade Commission (“FTC”)/Antitrust Division of the Department of Justice (“DOJ”) and the notice issued by the Internal Revenue Service (“IRS”) all of which address ACOs.  The agencies will accept public comments until May 31, 2011.

Read more…

CMS’ Proposed Rules for ACOs: A Summary

On March 31st the Centers for Medicare and Medicaid Services (“CMS”) released its proposed rule to establish the Medicare Shared Savings Program (the “Shared Savings Program”). The rule will be published in the Federal Register in the next few days. CMS will accept comments on the proposed rule for a period of 60 days after publication in the Federal Register, and will respond to comments in a final rule to be issued later this year. At the heart of the Shared Savings Program is the development of Accountable Care Organizations (“ACOs”) to bring together providers and suppliers in an effort to coordinate care for Medicare fee-for-service (“FFS”) beneficiaries. To participate in the Shared Savings Program, ACOs must submit an application, and if approved, enter into a three year agreement with CMS to be accountable for the quality, cost and overall care of at least 5,000 traditional FFS Medicare beneficiaries who may be assigned to it. The Shared Savings Program will begin operating on January 1, 2012.

Proposed Rule Key Concepts and Issues

•      Proposed regulations will be published in the Federal Register on April 7.

•     Participation requires 3 year agreement with early termination forfeiture.

•     Proportionate representation and 75% control of governance required for ACO participants which may include hospitals, physicians and other providers.

•     Involvement of Medicare beneficiaries and community stakeholders required.

•     Detailed and potentially onerous application, operation and reporting requirements.

•     Retrospective and prospective assignment of beneficiaries based on primary care physician.

•     Beneficiaries may opt out of data sharing, but quality of services and coordination of care may not decline.

•     Two track shared savings model to encourage early participation in program.

•     Comments to proposed rule due by Monday, June 6.

Read more…