New Supervision Requirements for Hospital Outpatient Department Therapeutic Services

On November 18, 2008, as part of the 2009 OPPS Final Rule, CMS provided a "clarification" of its position regarding what level of physician supervision is required for the provision of on-campus outpatient therapeutic services.  

Prior to November 2008, the provider community understood that CMS' position was that the direct supervision requirements for services provided incident to a physicin's services in an on-campus outpatient department was properly presumed to be met because staff physicians are always around in a hospital.   CMS has indicated that it is concerned that hospitals have taken its prior expression of presumptive compliance to mean that no supervision was actually required at all. 

While the OPPS Final Rule does not go further to state specifically that a physician must be physically present in an outpatient department of a hospital at all times, this "clarification" does seem to at least open the door for hospitals to be questioned about how, specifically, they meet the direct supervision requirements applicable in their various outpatient departments, where therapeutic services are provided. 

In support of the sense that CMS is moving in this direction, it is also worth noting that in December of 2008, CMS revised language in its Medicare Benefit Policy Manual regarding provider-based services to indicate that "direct supervision" means that a physician must be present and on the premises of the provider-based department and immediately available to furnish assistance and direction.

Hospitals would, in light of these developments, be advised to evaluate all outpatient department and provider-based locations to evaluate the extent to which the services provided at those locations require direct physician supervision and then make sure they have a plan in place to meet that requirement. 

OIG Work Plan - FY 2009

Last week, the Office of Inspector General (OIG) published its "Work Plan" for federal fiscal year 2009.   Many health care providers use the annual OIG Work Plan as a road map to guide their annual compliance efforts and this has always been a strategy that I have supported.  Although I usually suggest that compliance officers and the health care providers they represent look not just at the current year's Work Plan but the past two or three years Work Plans, collectively,  I think it is very important for health care providers to be aware of what the OIG thinks it should pay attention to, in any particular year.  Its also noteworthy to understand how the OIG's focus changes from year to year and over time. 

Of particular note in this year's Work Plan is the continuation of some significant reviews and the initiation of others that are in areas where health care providers often struggle.  They include OIG's review of:

  • Provider-Based Status for Inpatient and Outpatient Facilities
  • Hospital Owned Physician Practices Billed as Outpatient Services
  • Provider Bad Debt Allocations
  • Medicare Secondary Payer Compliance
  • Diagnostic X-rays Performed in Hospital Emergency Departments
  • EMTALA Compliance
  • Never Events
  • Physician Services Performed by Non-Physicians
  • Medicare Payments for Sleep Services
  • Services Performed by Clinical Social Workers
  • Outpatient Physical Therapy Provided by Independent Therapists
  • Payments for Colonoscopy Services

Given some of the questions that I have received from clients in the past six months, I see EMTALA Compliance and Medicare Payments for Sleep Studies as particularly interesting and suggestive of the fact that OIG and CMS think that providers are not doing things correctly in these areas. 

Your compliance committee should take the time to review the new OIG Work Plan and modify its compliance focus accordingly.