An analysis of five-year hospital trends has shown a steady decline in accounts receivable (AR) days, the number of days it takes for an organization to collect payments. As recently reported in Healthcare Financial Management magazine, these trends are consistent across critical access hospitals as well as long- and short-term acute care facilities.
For the full story from Paul Kohlheim in H&HN, click here.
The American Hospital Association on July 22 expressed strong support for legislation (S. J. RES. 44), introduced by Sens. Jay Rockefeller (D-WV) and Max Baucus (D-MT), that would nullify an August 2007 directive issued by the Centers for Medicare & Medicaid Services regarding the State Children’s Health Insurance Program. The directive, which was not subject to the rulemaking process, requires states to enroll 95% of children in families with incomes up to 200% of the federal poverty level before expanding coverage to children in higher-income families. The Senate Finance Committee is expected to mark up the legislation today.
“These new requirements – which are almost impossible to achieve – will directly affect the 23 states that already cover or have authorized expansions for children living in families with incomes above 250% of the FPL,” the AHA said in a letter to members of the Finance Committee. “Further, it will limit states’ opportunities to expand their programs at a time of economic downturn, when more and more children will come to rely on public health care coverage.”
The American Hospital Association on July 21 expressed concern over the Centers for Medicare & Medicaid Services’ interpretation of two provisions of the Medicare, Medicaid and SCHIP Extension Act contained in its long-term care hospital prospective payment system interim final rule. In the comment letter, AHA asserts that CMS should allow all LTCHs to be eligible for an MMSEA provision preventing CMS from implementing the so-called 25% Rule for three years. The AHA also said CMS should allow both new and expanding LTCHs to be eligible for exceptions to a three-year moratorium on new LTCH facilities and beds granted by the MMSEA.
“[T]he policies put forth in this interim final rule would create inequities for certain subsets of LTCHs,” the letter said. “This was not intended by Congress when it drafted the MMSEA.”
[ via AHA News Now ]
A growing number of organizations are discovering that formal mentoring programs can help develop leadership talent and give employees a better understanding of the entire business.
For the full story from Kathryn Mackenzie in HealthLeaders Media, click here.
Sens. Jay Rockefeller (D-WV) and Max Baucus (D-MT) on July 17 introduced a joint resolution of disapproval (S.J.RES.44) that would nullify an August 2007 Centers for Medicare & Medicaid Services letter that placed new income limits on the State Children’s Health Insurance Program. S.J.RES.44 cites a report from the Government Accountability Office that the limits should have been subject to the rulemaking process.
“The Bush administration wasn’t playing by the rules when they issued the directive,” Rockefeller said. “They issued an illegal regulation and violated the spirit of the children’s health insurance program.”
The CMS directive requires states to enroll 95% of children in families with incomes up to 200% of the federal poverty level before expanding coverage to children in families with incomes greater than 250% of the poverty level. The resolution currently has 41 bipartisan cosponsors.
[ via AHA News Now ]
Congressional officials on July 16 released revised guidance on the Honest Leadership and Open Government Act of 2007 to clarify reporting requirements for lobbyists regarding certain “honorary” contributions. The guidance states that “honorary” contributions reimbursed by a lobbyist’s employer should not be reported on the lobbyist’s individual LD-203 contributions report. Instead, only the lobbyist’s employer should report the contribution on its organizational contributions report.
The clarification specifically applies to reportable contributions made “in honor or recognition of” covered officials, including to entities named for a covered official, “established, financed, maintained, or controlled” by a covered official, or “designated by” a covered official. It also applies to contributions and payments to presidential library foundations and presidential inaugural committees. It does not apply to contributions to any federal candidate or office holder, leadership political action committee or political party committee.
The guidance also states that “designated by” a covered official includes, for example, a covered official’s directing a charitable contribution in lieu of an honoraria, as well as a payment that is directed to an entity by a covered official who also is on the board of that entity. It does not include a contribution following “a mere statement of support or solicitation” without some further role by the covered official. Semi-annual contributions reports are required under the 2007 law.
The deadline for filing the first semi-annual report, covering January 1 – June 30, is July 30. No extensions will be given.
Questions about the new filing requirements and the revised guidance can be directed to American Hospital Association’s assistant general counsel, Lawrence Hughes, at (202) 626-2346. The revised guidance is available online.
[ via AHA News Now ]
Nearly 60% of Medicare’s Recovery Audit Contractor (RAC) determinations in New York State were given back to facilities after appeals, the Healthcare Association of New York reports.
Click here to read more.
The House Judiciary Committee on July 16 voted to send legislation (H.R. 4854) amending the False Claims Act to the full House for a vote, but not before making certain amendments. In a letter sent this morning to the Committee’s chairman and ranking member, the American Hospital Association expressed strong opposition to the bill, asserting that it would force hospitals to divert funds needed for patient care to defend against frivolous lawsuits.
AHA is particularly concerned over a provision that would expand the FCA to include a new penalty for retaining an overpayment that the defendant did not ask for and, for legitimate reasons, had yet to return to the government payer. In the letter, AHA said this provision fails to account for existing means in federal law, regulation and practice by which health care providers reconcile overpayments and underpayments on a regular basis.
“This legislation goes far beyond the original scope of the law and is not in the best interests of hospitals and patients,” AHA Executive Vice President Rick Pollack said in the letter. The approved version sets a statute of limitations of eight years for filing qui tam suits; would require government relators to have actual knowledge of an overpayment in order to file a qui tam suit; precludes government employees from filing qui tam suits in cases the Department of Justice declines to pursue; and exempts city, county and local governments from prosecution also in cases the DOJ declines to pursue. Many public hospitals are considered local units of government for tax purposes.
The bill is similar to S. 2041, which passed the Senate Judiciary Committee in April.
[ via AHA News Now ]
Corporate boards function only as well as their members communicate with one another—and indeed, many recent scandals were enabled by reticent boards. To get a clearer picture of how board dynamics inhibit members from sharing information and speaking up, I observed two consecutive board meetings at each of five public U.S. companies and conducted individual interviews with their directors.
For the full story from Katharina Peck in The Harvard Business Review, click here.
A 10.6% reduction to Medicare physician fees will be delayed for 18 months because legislation (HR 6331) became law on July 15 after both chambers of Congress voted to override President Bush's veto of the bill. The reduction in fees took effect on July 1, but CMS delayed processing of claims. However, CMS by law on July 15 was required to begin processing claims reflecting the fee cut. The House voted 383-41 and the Senate voted 70-26 to override the veto
The law replaces the reduction in fees with a rate freeze for 2008 and a 1.1% increase in 2009. It will cost about $20 billion over five years, but much of the cost will be offset by reductions in payments to Medicare Advantage plans. The law reduces payments to the plans by about $14 billion over five years. The MA changes include cuts to indirect medical education payments and new limits on so-called private fee-for-service plans.
Bush in his veto wrote that although he supports delaying the reduction to physician fees, the bill would reduce "access, benefits and choices for all beneficiaries" because of the cuts to MA plans. Bush also wrote that a provision rolling back and delaying a Medicare competitive bidding program for durable medical equipment that began on July 1 could open the Medicare Trust Fund to litigation by companies who won contracts. In addition, Bush wrote that another provision of the measure would increase costs for the Medicare drug benefit by giving CMS the authority to force drug plans to pay for treatments in certain classes of drugs. Currently, drug plans establish their own formularies, except for drugs in six disease categories in which CMS requires insurers to cover almost every drug.
Among other provisions of the law are:
