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Outpatient Surgery E-Weekly December 4th, 2007

THIS WEEK'S ARTICLES

Audit: 4 N.Y. State ASCs Collected $8M in Overpayments
FASA-AAASC Merger Approved, Board Named
You Can't Beat the Whiteboard
Bariatric Patients May Overwhelm Diagnostic Equipment

NEWS & NOTES

THE DEADLINE FOR
TONSILLECTOMIES FOR CHILDREN
CITING HAZARDS TO MEDICAL DEVICES
THE JOINT COMMISSION HAS ANNOUNCED
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LAST WEEK'S E-WEEKLY ARTICLES

Joint Commission Unveils New Patient Safety Goals
Ear Tube Placement Made Easier?
APIC Survey Assesses MRSA Initiatives
News & Notes
Audit: 4 N.Y. State ASCs Collected $8M in Overpayments

Question: When is merely agreeing to accept what an insurance company pays considered abuse? Answer: When you waive out-of-pocket costs to your patients, and then submit out-of-network claims to an insurer that pays you considerably more than it would a participating provider.

Audits released yesterday by New York's state comptroller say four of the state's largest ASCs did just that from January 2001 through December 2006, costing taxpayers $8 million and possibly committing insurance fraud.

Here's how the audits describe the abuse. When the four ASCs treated members of the state-run Empire Plan, a plan designed specifically for government employees, they would routinely waive out-of-pocket costs and then submit inflated out-of-network claims to the plan, inappropriately billing United HealthCare, the state's insurance administrator, for the higher reimbursement rates. The patients who were treated at these facilities all saw physicians who participated in the Empire Plan and also worked at these various surgical facilities, says the comptroller's office. However, none of these facilities were participating providers in the plan, it adds.

State Comptroller Thomas DiNapoli identified the providers as:

  • The Endoscopy Center of Long Island, an endoscopic surgical facility in Garden City that was overpaid $2.7 million. Click here to view their audit.

  • The Capital Region Ambulatory Surgery Center, an orthopedic surgical facility in Albany that was overpaid $2.4 million. Click here to view their audit.

  • The Digestive Health Center of Huntington, a gastroenterological surgical facility that was overpaid $1.5 million. Click here to view their audit.

  • The Day-Op Center of Long Island, a surgical facility in Mineola that was overpaid $1.4 million. Click here to view their audit.

    We were unable to speak to someone for comment at any of the four centers.

    Generally, the patients didn't know that a non-participating provider was treating them, says the state comptroller. Empire Plan members are encouraged to seek care from plan providers over non-participating providers largely through the significantly higher out-of-pocket costs they, and the Empire Plan, are responsible for when visiting out-of-network providers. "We'll pay 80 percent of the claim [and] the member is responsible for 20 percent. These providers were waiving the out-of-pocket costs and passing them on to the state," explains a spokesperson for the plan.

    "The abuse identified in these audits is particularly insidious and difficult to detect because each instance appears on the surface to show a physician merely agreeing to accept what the insurance company pays," says Nancy G. Groenwegen, commissioner of the New York State Department of Civil Service, which administers the healthcare programs for New York State and participating local government employees and retirees. "Because the patient benefits from this practice and is probably unaware that this is potentially a fraudulent activity, the likelihood that the patient will complain is remote."

    Auditors also determined that if these individuals had gone to participating providers rather than non-participating providers, United HealthCare -- the state's insurance administrator -- would have paid at least 77 percent less for certain procedures. In addition, even though the providers waived the members' out-of-pocket costs, the claims they submitted to United Healthcare did not reflect this and therefore were inflated.

    Under New York state law, submitting an insurance claim with false information, such as an inflated charge, may constitute insurance fraud. The Office of the State Comptroller referred the audit findings to the Department of Civil Service.
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    June 17th E-WEEKLY

    The Advantages of Ultrasonic Instruments
    Federal Budgeters Back Specialty Hospital Limits
    Bugging Out of the Surgical Suite
    News & Notes
    FASA-AAASC Merger Approved, Board Named

    It's official. The first day of 2008 will mark the beginning of the new Ambulatory Surgery Center Association now that members of AAASC and FASA have independently approved the proposed merger of the two groups.

    "The new ASC Association will provide a unified voice for ASCs and enhance the value of all the benefits and services that both AAASC and FASA currently offer their members," says FASA president Kathy Bryant, who will become the ASC Association's chief executive officer after the merger. "While both AAASC and FASA were legally required to obtain the approval of their members for the merger to occur, we were pleased to find that approval of the merger was nearly unanimous and the members of both associations are clearly looking forward to the advantages the new ASC Association will offer them."

    The ASC Association's board of directors will be comprised of 10 current FASA board members and five board members from AAASC. Two additional members without current FASA or AAASC affiliations will be chosen from at-large nominations.

    Here's a rundown of the ASC Association's new board leadership:

  • Alsie Sydness-Fitzgerald, CASC, the current chair-elect of FASA, will chair the ASC Association's board of directors.

  • David Shapiro, MD, a current AAASC board member, will become chair-elect of the ASC Association's board and become chair at the conclusion of Ms. Sydness-Fitzgerald's term.

  • AAASC president Joseph Banno, MD, and current FASA chair Allen Hecht will both serve as immediate past chairs of the ASC Association's board.

  • Nap Gary will serve as secretary.

  • Jerry Henderson, CASC, will be treasurer.

    The board will also include Joe Clark, Greg Cunniff, David George, MD, Michael Guarino, Sandra Jones, CASC, Keith Metz, MD, Brent Lambert, MD, John Schario and Donna St. Louis.

    The education and research arm of the ASC Association, to be called the Ambulatory Surgery Foundation, will also launch on Jan. 1. Dr. Shapiro will chair the new foundation's board of directors, which will include Ann Geier, CASC, Dick Hanley, Jovanna Lee, CASC, Sarah Martin, Margaret Orman, Debra Stinchcomb, CASC and Arnaldo Valedon, MD.
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    June 10th E-WEEKLY

    Study: Reused Wipes May Spread Bacteria
    FDA Warns Steris Over Sterilizer
    HHS Unveils Healthcare IT Plan
    News & Notes
    You Can't Beat the Whiteboard

    Computerized patient tracking systems don't always communicate as well as the traditional whiteboard, according to a study presented at the annual meeting of the Human Factors and Ergonomics Society in October.

    Although each system presents information in a similar format, with rows and columns of patient information, users found that computerized tracking systems had less flexibility and communicated information less effectively than the messy dry-eraser whiteboards did. "The way it looked had a visual cue," says Ann Bisantz, PhD, associate professor of industrial systems engineering at the University of Buffalo.

    Dr. Bisantz was one of several researchers who studied how whiteboards and patient tracking systems worked in the emergency departments of two university-related hospitals that had switched to the computerized system. Walking into a room, a staffer or physician could immediately assess the sense of urgency in the department based on the notes scribbled on the whiteboard. With the computerized system, this was less obvious, write the researchers in their study.

    Because staffers have to write on a whiteboard, rather than find a more isolated computer terminal, the whiteboard also serves as a meeting place where information is exchanged verbally. "The whiteboard was the one place people would be all the time," says Dr. Bisantz, who plans to continue studying patient tracking systems in order to help the designers of computerized versions. "They need to take seriously how the old system worked."

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    June 3rd E-WEEKLY

    Pre-surgical Antibiotics May Increase C. diff Risk
    Soft Drinks in the Surgical Suite
    Is Colonoscopy Without Biopsy Possible?
    News & Notes
    Bariatric Patients May Overwhelm Diagnostic Equipment

    Obese patients who are recovering from gastric bypass surgery may be too big for common diagnostic equipment. According to a study presented at the annual meeting of the Radiological Society of North America last month, patients who weigh 450 pounds or more are simply too large for CT scans or other imaging devices commonly used to check for post-surgical complications.

    Reviewing eight years of patients' electronic health records at Massachusetts General Hospital in Boston, researchers found that 12 percent of the patients who weighed more than 450 pounds needed post-surgical imaging due to clinical conditions, but were above the weight restriction for the equipment. Four of these patients needed additional surgery for suspected bypass leaks. Two patients with suspected blood clots in their lungs could not undergo a chest CT scan. For two others, who presented with non-specific abdominal pain, one was evaluated with an ultrasound and the other had a barium swallow test.

    "In these cases, physicians must resort to other means of diagnosis such as exploratory surgery or using less accurate or more invasive techniques," says Raul N. Uppot, MD, an assistant radiologist at MGH and instructor of radiology at Harvard Medical School. "Patient care may be ultimately affected due to a compromised diagnosis."

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    May 27th E-WEEKLY

    Medtronic Spine Settles Device Lawsuit
    Survey Shows Surge in ASC Case Volume
    Urology and Gynecology Procedures Moving to ASCs
    News & Notes
    News & Notes


  • THE DEADLINE FOR Outpatient Surgery Magazine's 2007 Showcase Stocking Stuffer Contest has been extended by one week to Monday, Dec. 10 at 5 p.m. (Eastern time). Regular subscribers to Outpatient Surgery Magazine can learn about new surgical products and earn chances to win great prizes, including an Apple iPhone, a Nintendo Wii, Canon digital cameras and other merchandise. Just find your November 2007 Product Showcase and point your Web browser to our contest Web page. You'll need your subscriber number (located on your mailing label) and a copy of November's Product Showcase (packaged with November's regular issue) to participate.

  • TONSILLECTOMIES FOR CHILDREN with only mild or moderate throat infections may not be cost-effective, says a Dutch study in the November issue of the journal Archives of Otolaryngology - Head & Neck Surgery. A clinical trial of 300 pediatric patients recommended for adenotonsillectomy in which half received surgery and half were instead monitored closely showed that the costs of treating the surgery patients were significantly higher, but with only a slight increase in post-op condition as compared to the non-surgery patients. Noting that the cost-versus-effects balance seemed inequitable, the researchers pointed out that the more costly the procedure, the wider the gap.

  • CITING HAZARDS TO MEDICAL DEVICES, their users and the patients who rely on them, the FDA - in conjunction with the CDC, OSHA and the EPA - has issued a public health notification on the use of cleaning and disinfecting compounds on electronic equipment. The notification warns healthcare personnel that applying such products to pain pumps, ventilators, fluid warmers, computer workstations and other items containing unsealed electronic components may lead to corrosion and damage resulting in fires and burns, malfunctions or catastrophic failures.

  • THE JOINT COMMISSION HAS ANNOUNCED seven new hospital outpatient measures that may be used to satisfy ORYX performance measurement requirements. This new set, which is derived in part from the CMS Physician Quality Reporting Initiative, will give hospitals more measurement sets to use and support hospitals' efforts to meet multiple measurement requirements with a single effort. In addition to this set, hospitals may choose from other measurement sets, including surgical conditions and heart failure, for their minimum of four core measures.
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    May 20th E-WEEKLY

    Tenn. Surgeon Pleads Guilty to Assault
    ASGE Launches Quality Recognition Program
    AAAHC's New Outpatient Benchmark Data
    Tell Us Your Patient Warming Stories
    News & Notes