Your Government on the Move

In this issue, you will find evidence that your government is moving forward. First, it provides a new (partial) answer to an old question on the dilemma of billing for missed appointments. Second, it sets the ultimate deadline for the long postponed implementation of the National Provider Identifier (NPI). And third, it issues a financial incentive to achieve President Bush’s 2004 goal of having Electronic Health Records (EHR) for most Americans by 2014.

As it turns out, EHR is important not only because it promises to improve patient care, but also because it has potential for improving the financial health of your practice. Watch for an article on this subject in the next MediStar Meducation AlertSM when we will discuss ways to implement EHR without interrupting your office procedures or your cash flow. Meanwhile, enjoy this issue!

Ron Nyman, Founder and President

Index

Can Doctors Bill Patients for Missed Appointments?
A New Answer to an Old Question

Use of NPI Is Mandatory
as of March 1

HHS Announces Plan to Lower Cost Barriers to EHR

Other MediStar News

Can Doctors Bill Patients for Missed Appointments?
A New Answer to an Old Question

By Ronald E. Nyman, Esq.

In the April/May 2004 issue of News Capsule, published by the Fairfield County Medical Association, I attempted to answer a question that doctors frequently ask: Is a physician permitted to bill for a missed appointment?

At that time, I answered that the federal government’s representative, the Centers for Medicare and Medicaid Services (CMS), had issued no concrete directive as to whether a practice could bill a Medicare patient for a missed appointment. The situation remained unresolved until October 2007, when CMS finally answered the question.

In Section 30.3.13 of the Medicare Claims Processing Manual, CMS allows physicians to charge Medicare patients for missed appointments, "provided that they do not discriminate against Medicare beneficiaries but also charge non-Medicare patients for missed appointments." CMS views the missed appointment fee not as a charge for a service itself, "but rather a charge for a missed business opportunity." As long as a missed appointment policy applies to all patients alike, the fee can be billed to Medicare patients. Physicians should note, however, that this fee should not be billed to Medicare, but directly to the patient.

With regard to commercial carriers, I believe my 2004 analysis remains valid. If a doctor contracts and, therefore, participates with a particular carrier, the doctor needs to review the carrier agreement to see if charging for missed appointments is prohibited. If there is no specific prohibition against such billing, I would recommend contacting a provider representative at the carrier. Many carriers have attempted to argue that a doctor cannot bill for a missed appointment even if the carrier agreement does not prohibit it. Although the carriers’ arguments appear specious, in many instances they are threatening doctors with removal from their network.

Now for the question that remains unanswered: If a commercial carrier prohibits a participating provider from charging a missed appointment fee, can the physician still charge Medicare patients for missed appointments? Remember, CMS requires that the physician treat all patients alike; however, what if a doctor cannot do this because it violates an agreement with a private carrier? CMS provides no answer to this dilemma, and physicians should be aware of this ambiguity in the regulations when instituting a missed appointment fee policy.

As I stated in my previous article, I would strongly recommend that a practice notify all of its patients of a "missed appointment" billing policy. This notification could include posting signs in the waiting room, mailing notices to patients, and having patients sign a document stating that they are aware of the policy. At the very least, patients will not be able to complain that the new policy was sprung on them without notice.

Use of NPI Is Mandatory as of March 1

After pushing out the deadline more than once, Medicare will absolutely require your National Provider Identifier on claims submitted on and after March 1, 2008. As of this date, only the NPI will be required in the provider fields. The Centers for Medicare and Medicaid Services (CMS) issues this reminder: "For institutional claims, the primary provider fields are the Billing and Pay-to Provider fields. For professional claims, the primary provider fields are the Billing, Pay-to, and Rendering Provider fields. If the Pay-to Provider is the same as the Billing Provider, the Pay-to Provider does not need to be identified."

To read the complete article about the final NPI deadline, go to www.cms.hhs.gov/NationalProvIdentStand/.

HHS Announces Plan to Lower Cost Barriers to EHR

On October 30, 2007, the U.S. Department of Health and Human Services (HHS) announced an incentive program to encourage widespread use of Electronic Health Records (EHR). Recognized by most as having the potential to improve the quality of patient care, EHR systems are perceived by some as costly to implement and disruptive to the practice. HSS aims to address the former obstacle by paying higher Medicare reimbursements to as many as 1,200 medical practices that implement EHR.

Please see the article at www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=307008&taxonomyId=14&intsrc=kc_top for more information.


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