NEWS AND VIEWS FOR PTs

A complimentary newsletter from

MAILLY INGLETT & BARMAK, LLC

Educators and Consultants to Physical Therapists

 
JULY, 2011 - Volume 2, Issue 7
In This Issue
Fraudulent Scheme Reinforces the Vital Importance of Checking Your Enrollment Status with Payers After Ceasing Your Practice
For Your Information Q&A
Fraudulent Scheme Reinforces the Vital Importance of Checking Your Enrollment Status with Payers After Ceasing Your Practice

A Miami, FL. area resident & owner of a fraudulent physical therapy company in Lakeland, FL pleaded guilty along with three company officers for their role in a scheme to defraud Medicare. All appeared before U. S. Magistrate Judge Mark A. Pizzo in Tampa, FL and pleaded guilty to one count of conspiracy to commit health care fraud.

 

According to court documents, Jorge Zamora the owner of Dynamic Therapy Inc and his co-conspirators purchased Dynamic from its previous owners, and transformed it into a fraudulent enterprise. Dynamic purported to provide physical therapy services to Medicare beneficiaries, but in reality used the stolen identities of a physical therapist and scores of patients to bill Medicare for physical therapy services that were never provided.

 

From the fall of 2009 to the summer of 2010, Zamora and his co-conspirators submitted and caused the submission of $757,654 in fraudulent claims to Medicare for physical therapy services that were never provided. At sentencing, Zamora faces a maximum penalty of 10 years in prison and a $250,000 fine.

 

To help to minimize the possibility of health care fraud it is imperative that once you cease to practice you confirm your enrollment status with all the payers you had dealt with.

 

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more that 1,000 defendants who collectively have falsely billed the Medicare program for more that $2.3 billion. In addition, the Health and Human Services Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

 

For Your Information Q&A

Question:

In the state of NJ how often can we bill for a Re-evaluation after 10 visits, 60 days... Is it different for Medicare? Just wondering what the state regulation was on that, thanks.

 

Response:  

There is nothing in the NJ regulations specifying how often a re-evaluation may be billed or conducted. As such, the PT is responsible and accountable for this decision. The Highmark Medicare LCD for PM&R, which can be accessed here; https://www.highmarkmedicareservices.com/policy/mac-ab/l27513-r7.html , states the following:

    

Coverage Limitations

 

Reimbursement for an evaluation will be limited to once per episode. Many patients may complete their course of physical medicine and rehabilitative services without ever needing a re-evaluation service, while others may need one or more re-evaluations performed during their course of treatment because of a change in status or needs.

 

Question:

With the upcoming Medicare audits, is there a concern if you charge self pay patients less than your Medicare patients? For instance, if I have a flat fee for self pay patients that is less than the average total for each Medicare visit, is that "an issue" per the Medicare regulations and if so, do you have the reference?

 

Response:

The short answer to your question is a qualified yes; this could be a concern on audit. Please keep in mind, however, that we cannot answer for the Medicare program or a Recovery Audit Contractor (RAC), and that there is not always a specific reference for every question or situation. Also keep in mind that "fees", "charges" and collections"are not synonymous terms, and present unique issues with significant legal implications.

 

Section 1833 of the Social Security Act, which addresses the Medicare program, mandates that the program will reimburse 80% of the Medicare fee schedule or 80% of the "customary charge", whichever is less. As such, this language presents an opportunity for a RAC auditor to argue that your charge to self pay patients is your "customary charge". Also keep in mind that NJ regulations require that you provide a written fee schedule available upon request.

 

This message is probably a good illustration why we often say that some issues do not generally lend themselves well to simple responses, and are better suited for direct conversation, given the significant implications of the issue.

   

Reference:

Social Security Act: http://www.socialsecurity.gov/OP_Home/ssact/title18/1833.htm

 

NJ Fee Schedule Regulation, 13:39A-3.4 Financial arrangements with clients and third party payors: http://www.njconsumeraffairs.gov/laws/ptregs.pdf

    

Question:

I have heard something that I'm not sure is correct. Are we now going to have pay a fee to enroll in Medicare?

 

Response:

The short answer is no, but it's not quite that simple. There have been many significant changes to the enrollment process, which were included in H.R. 3590, Patient Protection and Affordable Care Act,sometimes referred to as "Obamacare".Implementation of these statutory changes is outlined in the Final Rule published by CMS on 2/2/11 in the Federal Register. While it is not true that an enrollment fee will be charged for initial enrollment, except for those PTs who also wish to enroll as DMEPOS providers, Medicare contractors will perform the following when enrolling PTs and PT groups.

  1. Verify that a provider or supplier meets all applicable Federal regulations and State requirements for the provider or supplier type prior to making an enrollment determination.
  2.  Conduct license verifications, including licensure verifications across State lines for physicians or non-physician practitioners and providers and suppliers that obtain or maintain Medicare billing privileges as a result of State licensure, including State licensure in States other than where the provider or supplier is enrolling.
  3. Conduct database checks on a pre-and post-enrollment basis to ensure that providers and suppliers continue to meet the enrollment criteria for their provider/supplier type.
  4. Conduct an on-site visit.

While a fee will not be charged upon initial enrollment there is much more to these regulations than can be adequately summarized here, and the regulations themselves are already being challenged by many national provider organizations, including APTA. For example, the response above is applicable to PTs in Private Practice (PTPPs) but not to CORFs or Rehab Agencies. 

 

Reference:

Federal Register / Vol. 76, No. 22, pp. 5862-5971 Hyperlink: http://edocket.access.gpo.gov/2011/pdf/2011-1686.pdf

 

 

Mailly Inglett & Barmak, LLC  

Ken Mailly, PT, MPA, NJ Lic. # NJ40QAOO335900
 
Ken is a graduate of the State University of New York at Downstate Medical Center, and completed his Master's in Public Administration at Seton Hall University, with a concentration in Health Care Policy and Management. He is also certified as an Ergonomic Specialist, and as a Rehabilitation Agency Medicare Surveyor.

In addition to his graduate studies, with well over 2,500 hours of continuing physical therapy education, Ken has amassed an extremely diverse and extensive knowledge of the clinical practice of physical therapy, rehabilitation, and practice management. Ken's primary clinical focus is in orthopedics, chronic soft tissue disorders, and management of patients with bleeding disorders.

Along with this clinical knowledge base, Ken has devoted the last 10 years to the study of regulation, legislation, and reimbursement for physical therapy & rehabilitation services. He has served as an expert witness, on behalf of both plaintiffs and defendants, in numerous malpractice cases. He has also been consulted on state, federal, and third party payer inquiries regarding physical therapy and rehabilitation billing, regulatory, and legal issues.
 
Ken is a partner in Mailly & Inglett Consulting. His focus is on compliance with professional standards, state and federal regulations, as well as practice management strategies.
 
Barry G. Inglett, PT, CHT, Cert. MDT, NJ Lic # NJ40QA00146200
 
Barry is a graduate of Columbia University, a Certified Hand Therapist and a Credentialed McKenzie Therapist. He is a physical therapist and co-owner of Wayne Physical Therapy & Spine Center, a private practice established in 1977. Barry is also a partner in Mailly & Inglett Consulting, working with both physical therapists and Payers.
 
Barry is a guest lecturer for UMDNJ's Physical Therapy Program as well as a clinical instructor for several colleges including Columbia University, New York University, Temple University, Stockton State College, Kean College and the University of Medicine and Dentistry's Physical Therapy Program. He is also an instructor for HMW (Human Mechanical Wellness) Seminars, specializing in mechanically oriented treatment programs for the spine and extremities.

Barry has been retained by numerous insurance companies as well as the New Jersey Attorney General's Office offering expert witness testimony in physical therapy practice. He has been involved in utilization review and reimbursement issues in physical therapy for over 20 years. Barry also instituted, and was retained as the lead expert, in the largest PT fraud case in NJ history (Cobo v. MTF). He also served as a physical therapy consultant from 1997-2005 for Horizon Healthcare running the NJ Plus pre-certification program. Barry has served on the New Jersey Board of Physical Therapy Examiners in the past for eight years and has also served as the Chairman of the Board of Physical Therapy Examiners.

David S. Barmak, Esq.
 
David S. Barmak, Esq. received a JD from Cornell University and a BA from Duke University. The Law Offices Of David S. Barmak, LLC was established in 1984. David is licensed to practice law and has clients in the states of New York, New Jersey, Pennsylvania and Connecticut.
 
David's legal focus is in the areas of corporate compliance, risk management, human resources and operational legal affairs.
 
David has a strong background in operations, having served as both the Associate Administrator and General Counsel for a large New York Certified Home Health Agency, initiating and directing a New York Licensed Home Care Services Agency as well as owning and operating a Durable Medical Equipment company. David also provides defense of enterprises, directors, officers and other professionals accused of misconduct.
 
For more information, please contact us:
 
Mailly Inglett & Barmak, LLC
info@maillyinglettbarmak.com
Telephone (609) 688-1188
Fax (609) 688-1199
www.MaillyInglettBarmak.com
 
© Copyright, 2011. Mailly Inglett & Barmak, LLC. All rights reserved. No portion of these materials may be reproduced by any means without the advance permission of the author.