Change Request 9979 - Centers for Medicare and Medicaid ...

CMS Manual System

Pub 100-02 Medicare Benefit Policy

Transmittal 234

Department of Health & Human Services (DHHS)

Centers for Medicare & Medicaid Services (CMS)

Date: March 10, 2017 Change Request 9979

SUBJECT: Clarification of Admission Order and Medical Review Requirements

I. SUMMARY OF CHANGES: This Change Request clarifies CMS rulemaking language as it relates to Admission and Medical Review Criteria for Hospital Inpatient Services Under Medicare Part A; Requirements for Physician Orders.

EFFECTIVE DATE: January 1, 2016 *Unless otherwise specified, the effective date is the date of service. IMPLEMENTATION DATE: June 12, 2017

Disclaimer for manual changes only: The revision date and transmittal number apply only to red italicized material. Any other material was previously published and remains unchanged. However, if this revision contains a table of contents, you will receive the new/revised information only, and not the entire table of contents.

II. CHANGES IN MANUAL INSTRUCTIONS: (N/A if manual is not updated) R=REVISED, N=NEW, D=DELETED

R/N/D R R N

CHAPTER / SECTION / SUBSECTION / TITLE 1/Table of Contents 1/10/Covered Inpatient Hospital Services Covered Under Part A 1/10/10.2/Hospital Inpatient Admission Order and Certification

III. FUNDING: For Medicare Administrative Contractors (MACs): The Medicare Administrative Contractor is hereby advised that this constitutes technical direction as defined in your contract. CMS does not construe this as a change to the MAC Statement of Work. The contractor is not obligated to incur costs in excess of the amounts allotted in your contract unless and until specifically authorized by the Contracting Officer. If the contractor considers anything provided, as described above, to be outside the current scope of work, the contractor shall withhold performance on the part(s) in question and immediately notify the Contracting Officer, in writing or by e-mail, and request formal directions regarding continued performance requirements.

IV. ATTACHMENTS:

Business Requirements Manual Instruction

Attachment - Business Requirements

Pub. 100-02 Transmittal: 234

Date: March 10, 2017

Change Request: 9979

SUBJECT: Clarification of Admission Order and Medical Review Requirements

EFFECTIVE DATE: January 1, 2016 *Unless otherwise specified, the effective date is the date of service. IMPLEMENTATION DATE: June 12, 2017

I. GENERAL INFORMATION

A. Background: In response to concerns about the provision of observation services for increasingly long periods of time and in response to stakeholders' concerns about the clarity and appropriateness of Medicare's hospital inpatient admission and medical review guidelines, CMS published several clarifications and changes in policy in the FY 2014 IPPS/LTCH PPS final rule and subsequent rulemaking. These clarifications and changes remain in the text of the final rules; however, the Benefit Policy Manual was not updated to reflect the same clarifications and changes. This intent of this Change Request is to resolve that issue.

B. Policy: In the FY 2014 IPPS/LTCH PPS final rule and subsequent rulemaking CMS clarified and specified in the regulations that an individual becomes an inpatient of a hospital, including a Critical Access Hospital, when formally admitted as such pursuant to an order for inpatient admission by a physician or other qualified practitioner described in the final regulations. The order is required for payment of hospital inpatient services under Medicare Part A. CMS specified that for those hospital stays in which the physician expects the beneficiary to require care that crosses two midnights and admits the beneficiary based upon that expectation, Medicare Part A payment is generally appropriate. Conversely, CMS specified that hospital stays in which the physician expects the patient to require care less than two midnights, payment under Medicare Part A is generally inappropriate. This revised CMS guidance to hospitals and physicians relating to when hospital inpatient admissions are determined reasonable and necessary for payment under Part A.

II. BUSINESS REQUIREMENTS TABLE

"Shall" denotes a mandatory requirement, and "should" denotes an optional requirement.

Number Requirement

9979.1

Contractors shall be aware of the updates to the Medicare Benefit Policy Manual, chapter 1, sections 10 and 10.2.

Responsibility

A/B D SharedMAC M System

E Maintainers

A B H F MV C H M I C MW HAS S S F C S

X

Other

III. PROVIDER EDUCATION TABLE

Number Requirement

Responsibility

9979.2

MLN Article: A provider education article related to this instruction will be available at shortly after the CR is released. You will receive notification of the article release via the established "MLN Matters" listserv. Contractors shall post this article, or a direct link to this article, on their Web sites and include information about it in a listserv message within 5 business days after receipt of the notification from CMS announcing the availability of the article. In addition, the provider education article shall be included in the contractor's next regularly scheduled bulletin. Contractors are free to supplement MLN Matters articles with localized information that would benefit their provider community in billing and administering the Medicare program correctly.

A/B D C

MAC M E

E D

A B H

I

HM

H A

C

X

IV. SUPPORTING INFORMATION

Section A: Recommendations and supporting information associated with listed requirements: N/A

"Should" denotes a recommendation.

X-Ref

Recommendations or other supporting information:

Requirement

Number

Section B: All other recommendations and supporting information: N/A

V. CONTACTS

Pre-Implementation Contact(s): Daniel Schroder, 410-786-7452 or daniel.schroder@cms., Joseph Brooks, 410-786-0275 or joseph.brooks@cms.

Post-Implementation Contact(s): Contact your Contracting Officer's Representative (COR).

VI. FUNDING

Section A: For Medicare Administrative Contractors (MACs): The Medicare Administrative Contractor is hereby advised that this constitutes technical direction as defined in your contract. CMS does not construe this as a change to the MAC Statement of Work. The contractor is not obligated to incur costs in excess of the amounts allotted in your contract unless and until specifically authorized by the Contracting Officer. If the contractor considers anything provided, as described above, to be outside the current scope of work, the contractor shall withhold performance on the part(s) in question and

immediately notify the Contracting Officer, in writing or by e-mail, and request formal directions regarding continued performance requirements.

ATTACHMENTS: 0

Medicare Benefit Policy Manual

Chapter 1 - Inpatient Hospital Services Covered Under Part A

Table of Contents (Rev. 234, Issued: 03-10-17)

Transmittals for Chapter 1

10.2 ? Hospital Inpatient Admission Order and Certification

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