Healthcare reform, News, Skilled Nursing Facility

OIG released its FY 2015 mid-year update

The Office of Inspector General (OIG) released its Fiscal Year (FY) 2015 Mid-Year Update last week. The FY mid-year update includes several initiatives central to long-term care providers.

Medicare Part A billing by skilled nursing facilities

The OIG will describe changes in SNF billing practices from FYs 2011 to 2013.  Prior OIG work found that SNFs increasingly billed for the highest level of therapy even though beneficiary characteristics remained largely unchanged. OIG also found that SNFs billed one-quarter of all 2009 claims in error; this erroneous billing resulted in $1.5 billion in inappropriate Medicare payments. CMS has made substantial changes to how SNFs bill for services for Medicare Part A stays.

State agency verification of deficiency corrections

The OIG will determine whether State survey agencies verified correction plans for deficiencies identified during nursing home recertification surveys. A prior OIG review found that one State survey agency did not always verify that nursing homes corrected deficiencies identified during surveys in accordance with Federal requirements. Federal regulations require nursing homes to submit correction plans to the State survey agency or CMS for deficiencies identified during surveys. CMS requires State survey agencies to verify the correction of identified deficiencies through onsite reviews or by obtaining other evidence of correction.

Program for national background checks for long-term-care employees

The OIG will review the procedures implemented by participating States for long-term-care facilities or providers to conduct background checks on prospective employees and providers who would have direct access to patients and determine the costs of conducting background checks. OIG will determine the outcomes of the States’ programs and determine whether the programs led to any unintended consequences. Section 6201 of the Patient Protection and Affordable Care Act (ACA) requires the Secretary of Health and Human Services to carry out a nationwide program for States to conduct national and State background checks for prospective direct patient access employees of nursing facilities and other long-term-care providers.

You can review the entire mid-year update to the 2015 Work Plan on the OIG’s website.