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CMS Issues The Medicare Recovery Audit Contractor (RAC) Program: Update to the Evaluation of the Three-Year Demonstration Program

On June 14, 2010, CMS published a report entitled, “The Medicare Recovery Audit Contractor (RAC) Program: Update to the Evaluation of the 3-Year Demonstration Program.” This report contains statistics through March 9, 2010 and includes updated appeals data. The new report reveals a much lower number of appeals than had…

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The FDA Plans to Alter its Rules to Help Facilitate Innovation in Medical Device Development

The U.S. Food and Drug Administration (the “FDA”) has announced in a press release that the agency and other regulatory representatives will participate in a one day workshop entitled “Indentifying Unmet Public Health Needs and Facilitating Innovation in Medical Device Development.” Dr. Jeffrey E. Shuren, director of the Food and…

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System Changes Necessary to Implement the Patient Protection and Affordable Care Act (PPACA) Section 6404- Maximum Period for Submission of Medicare Claims Reduced to Not More than 12 Months

Wisconsin Physician Services (an existing Medicare Carrier and Medicare Administrative Contractor) issued a reminder today on its website for providers concerning the new deadlines for Medicare claims submission. The CMS Medlearn matters article dated May 7, 2010 and effective January 1, 2010 on the subject provides specific details relative to…

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Texas Pain Management Physician Arrested Based on Federal Health Care Fraud Indictment

According to a press release of the Department of Justice dated June 14, 2010, a Texas management physician, Dr Anthony Francis Valdez, was arrested and stands charged with carrying out an estimated $41 million fraudulent health care benefit program billing scheme. Valdez is the owner of the Institute of Pain…

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Oklahoma Court Invalidates HHS Regulation for Calculating Hospice Provider Cap

On June 7, 2010, the U.S. District Court for the Western District of Oklahoma held that a Department of Health and Human Services (HHS) regulation, 42 C.F.R. § 418.309(b), implementing a statutory cap on Medicare payments for hospice care was invalid and must be set aside (Compassionate Care Hospice v.…

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Detroit and Wayne County Leaders Seek $20 million for Health Centers

Detroit and Wayne County leaders are attempting to convince federal authorities to provide $20 million over the next five years to build at least 10 more community health centers. Although Detroit and Wayne County rank among of the nation’s highest poverty and unemployment rates, the area has only 24 federally…

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Temporary Certification Program for EHR Technology Announced

A final rule establishing the temporary certification program for electronic health record (“EHR”) technology was released today by the Office of the National Coordinator for Health Information Technology (“ONC”). As explained by the HHS press release and in a previous HLP blog about the proposed rule, the HITECH Act of…

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OIG Advisory Opinion on Freestanding Radiation Oncology Center and Free Services to Cancer Patients

OIG has posted an advisory opinion No. 10-08 concerning two affiliated corporate entities that both operate a freestanding radiation oncology center and intend to provide to their Medicare cancer patients the services of a dietitian and social worker at no additional charge as part of their patient’s treatment. The proposed…

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ASA Asks OIG to Prohibit Anesthesia “Company Model”

By letter dated June 16, 2010, the American Society of Anesthesiologists (“ASA”) continued its efforts to request that the OIG intervene to issue a Special Advisory Bulletin prohibiting what is called the anesthesia “company model.” The ASA originally made the request to the OIG in March of 2009; however, to…