Medical necessity denials

We are enduring our first RAC audit. So far, they have denied 2/3 of the records for Inpt vs.Observation. At this point CDI is not part of the review process or appeal process. Presently one UM nurse and our MD advisor review these records for appeal. Thus far, they have appealed 2 of the 119 denials. We have no official RAC team or RAC coordinator. CDI is being considered in the ED. Another approach they are seriously leaning toward is investing in a company called EHR or Executive Health Resources. It is a company that employs MDs to review records concurrently to determine medical necessity and also write appeals. It looks pretty slick. Is anyone familiar with this company or using this company? It is pricey. I am wondering what other systems do to thwart denials and ensure proper patient status. My hospital has a history of using rather unorthodox means of maintaining compliance. I don't want to see them go down another needlessly expensive path. Thanks for any input!

Comments

  • We implemented HER about a year ago. I am not intimately involved as medical necessity RAC is primarily handled by UR at my facility. We are in the same dept though, so I know the basics. Overall, the hospital has been happy with their results. Our OBS rate is substantially lower (it was very high) and EHR will handle the audits. It also takes some of the pressure off UR, which I think the UR nurses appreciate.
    I just heard a summary of the financial impact yesterday, and it sounded good. Senior management was very pleased.

    Katy Good, RN, BSN, CCDS, CCS
    Clinical Documentation Program Coordinator
    AHIMA Approved ICD-10CM/PCS Trainer
    Flagstaff Medical Center
    Kathryn.Good@nahealth.com
    Cell: 928.814.9404
  • edited May 2016
    We use EHR for our Medical Necessity appeals. This is coordinated thru our Case Management department. Based on discussion in URC meetings, I believe they have been happy with EHR. Our CDI department writes all DRG denial appeals.

    Dorie Douthit, RHIT,CCS
    ddouthit@stmarysathens.org
  • edited May 2016
    We started this week with EHR for medical necessity reviews. So far, I really like the reminders that are sent to prompt re-reviews. We also use EHR for our second level and higher appeals for RACs.

    Thanks,
    Kathy
    Kathy Shumpert, RN, CCDS

    Clinical Documentation Improvement Specialist
    Community Howard Regional Health
    3500 S Lafountain
    PO Box 9011
    Kokomo, IN 46904
    Office 765-864-8754
    Cell phone 765-431-0123
    Fax 765-453-8447

    When something can be read without effort, great effort has gone into its writing. ~Enrique Jardiel Poncela
  • Our CM team is using EHR and they seem happy, to date. The contract and process is new and I don't have any particulars. What I do 'like' is that the EHR MD will write and document a note to the physician on staff advising the most appropriate category for the patient (acute admission versus outpatient observation) citing clinical criteria . I work for Quality rather than CM and I am intimately involved in the observation versus inpatient process.


    Paul Evans, RHIA, CCS, CCS-P, CCDS
     
    Manager, Regional Clinical Documentation & Coding Integrity
    633 Folsom St., 7th Floor, Office 7-044
    San Francisco, CA 94107
    Cell:  415.637.9002
    Fax:  415.600.1325
    Ofc:  415.600.3739
    evanspx@sutterhealth.org
  • edited May 2016
    We have used EHR for around 4 years. I do not work as closely w/them as CM/UM. The only drawback I have seen is some of the patients they claim meet Inpatient criteria I would have made Observation back in my "UM" days. They seem very "sketchy" criteria-wise.

    The nicely written note they send citing the clinical indicators they are using to validate the admission smack of some term papers in college I turned in at the last minute...

    We almost sent them walking this year but decided to keep them for a while longer.

    N. Brunson, RHIA,CDIP,CCDS
  • edited May 2016
    We have been using EHR for about 2 years. We are very happy with them. We use them for 2nd level reviews on admission if the patient does not meet Interqual, for continued stay reviews and for RAC and MAC appeals also for DRG downgrades. Would highly recommend them they are the Gold standard, I believe.

    Karen


    Karen McKaig, BSN, RN, CCM, CPUR, CCDS
    Case Manager
    Clinical Documentation Specialist
    Baxter Regional Medical Center
    Mountain Home, AR 72653
    870-508-1499
    kmckaig@baxterregional.org
  • edited May 2016
    We had EHR and recently switched to Accretive for similar reasons. Accretive notes always include the risk to the patient if they are not hospitalized. Supposedly this is helps support the appeal process. Linnea
  • edited May 2016
    Thank you for all of your responses. A great help!

    -Jane
  • edited May 2016
    Our CM have been using EHR for the past few months, they found it time consuming at first but now really like it.

    Diane Draize RN, CPUR,CCDS
    Clinical Documentation Specialist

    Ministry Door County Medical Center
    diane.draize@ministryhealth.org
    920-743-5566 ex 3143

    We earn trust by working together as One Ministry to keep PATIENTS FIRST in everything we do
  • I ditto Karen's comments except we do not use them for all appeals, only the ones they reviewed on a concurrent basis.
    Sharon
    Sharon Cooper, RN-BC, CCS, CCDS, CDIP
    AHIMA-Approved ICD-10-CM/PCS Trainer

    Owensboro Medical Health System
    Manager Clinical Documentation & Appeals
    P.O. Box 20007
    Owensboro, KY 42304-0007
    (270) 688-1277 Office
    (270) 316-9088 Cell
    (270) 688-2737 Fax
    sharon.cooper@omhs.org

    TEAM = Together Everyone Accomplishes More!
  • I had intended to respond earlier....

    One thing I am absolutely struck by, is the essentially ZERO rate of appeals. WAY off from the national trend. Appeals are often successful....either there are much bigger issues on determining status (in vs out), or the decision to appeal must be bumped up by orders of magnitude. As I recall there might have been something in the CDI Strategies e-newsletter that shared information from AHA about appeal rates and successes. Seems appeal should be at least 33% if I remember.

    On EHR...many engage them, I'd describe as the gold standard for support. My impression is that our hospital is satisfied with their services though I am not involved with UR (CDI only).

    From a CDI perspective, working in the ED & ensuring documentation to support inpt vs outpt would seem to me to be included in the CDI scope, or alternatively simply working to ensure full & complete descriptive detailed documentation is present to give UR the information to work with.
    Do watch staffing / resources and clear expectations for prioritization.
    Make sure you have received clear direction about what to do & that your partners (UR, etc.) are meshed in together so everyone is effective.

    Don
  • edited May 2016
    This is an interesting line due to denials and a fialed attempt by case
    management to assist in the ED we have been talking about moving our CDI
    process into the ED to work with both documentation issues and
    observation/inpatient status issues. We are early in the tihinking process
    on this. Any ideas, experience in the area of CDI in the Emergency room
    would be welcome information.
  • edited May 2016
    Thanks for your input Don. Good points and suggestions.

    While staffing is an issue, my thought is that- at this point in our institution anyway-, CDI is the frosting on the cupcake. Frosting makes the cupcake complete and perfect. If the oven is broken (i.e the ED documentation) we aren't getting any cupcakes to frost. We currently have backend solutions performed by UM such as simply not billing for Observation services, re-reviewing 2 day Inpatient stays post discharge to ensure they met medical necessity and if the UM nurse does not think it was met; these record are billed only ancillary charges and not for inpatient admission. Can you see the conundrum we are in? In the latter case, we are frosting cupcakes that, ultimately, get thrown out!
    As far as clear direction, I am a renegade on this one and forging my own path. The c suite does not understand the process. So UM has implemented these practices to avoid errors in status. I think having CDI in the ED would be a frontend solution. I am sure this is difficult to imagine, but UM and CDI are not on the same page currently.
    I always say, UM sees what is written. CDI sees what could be written. We need to work together. I am pushing for this to change. We shall see what happens...
    Thanks again, Don!

    Jane
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