emerging outpatient cdi drivers and technologies · icd-10 cm/pcs • volume of codes • lack of...

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7th Annual Association for Clinical Documentation Improvement Specialists Conference 2 Emerging Outpatient CDI Drivers and Technologies Elaine King, MHS, RHIA, CHP, CHDA, CDIP, FAHIMA Outpatient Payment Specialist JA Thomas/Nuance Communications, Inc. Atlanta, Ga.

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Page 1: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

7th AnnualAssociation for Clinical Documentation

Improvement SpecialistsConference

2

Emerging Outpatient CDI Drivers and Technologies

Elaine King, MHS, RHIA, CHP, CHDA, CDIP, FAHIMA

Outpatient Payment Specialist

JA Thomas/Nuance Communications, Inc.

Atlanta, Ga.

Page 2: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Learning Objectives

• At the completion of this program, the learner will be able to:– Evaluate key differences between inpatient and

outpatient documentation, coding, and billing– Identify outpatient CDI drivers and objectives– Examine outpatient CDI strategies, resources,

and methodologies– Discuss ways to overcome the specific

challenges of ICD-10 outpatient documentation– List tips to maximize outpatient CDI program

effectiveness

4

Key Differences Between Inpatient & Outpatient

Documentation, Coding, & Billing

Page 3: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Inpatient and Outpatient CDI

Compare and Contrast

Inpatient

• Decreasing volume

• Fewer variables

• Clinical focus

• Less provider interaction

• Single setting

• Less focus on charges

Outpatient

• Increasing volume

• Constant change

• Business and clinical focus

• More provider interaction

• Disparate settings

• Charge description master (CDM)

“Is the setting correct?”

“Has there been previous failed treatment?”

6

Outpatient

Professional

Hospital‐owned

Private practice

Facility

Ambulatory surgery

ED

Diagnostics

Clinics

Rehab, etc.

Outpatient Components

Page 4: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Top Outpatient Claim Denial Reasons

• No documentation

• Incomplete or insufficient documentation

• Medically unnecessary

• Incorrectly coded

8

Outpatient CDI Drivers

Page 5: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Regulatory Drivers

Affordable Care Act (ACA)

Medicare Shared Savings Program

Accountable care organizations (ACOs)

Risk‐adjusted reimbursement

10

Hierarchical Condition Categories (HCCs)

• Risk-adjusted capitation

• Uses data to prospectively estimate predicted costs in the next year based on:– Demographic information &

– A profile of major medical conditions in the base year

Page 6: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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HCC Impact to Providers

• Medicare Advantage capitation payment

• Shared Savings Program– Accountable care organizations

– Historical benchmark expenditures adjusted based on CMS-HCC model

• Medicare Physician Quality and Resource Use Reports

12

HCCs

• HCC concept similar to DRGs• Each member (patient) has Risk Adjustment Factor

(RAF) score– Organization average RAF score similar to case mix– Score of 1 represents typical patient– Less than 1 is healthy patient– Greater than 1 likely patient utilizes greater resources

• Certain diagnoses increase RAF– Similar to CCs and MCCs– Usually chronic conditions

• Any encounter or episode in calendar year

Page 7: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Example HCC Diagnoses

• Certain amputations

• Alcohol dependence, in remission

• Ostomy presence

• Obesity

Slate is wiped clean beginning of calendar year

14

CDI Case Study

Risk markerIncremental prediction (sample 

rate $1,000 * risk factor)Relative risk factor

Scenario #1 (deficient documentation)

Female, age 75–79 $457 0.457

Diabetes mellitus $162 0.162

UTI $0 0.0

Total $619 0.619

Scenario #2 (same patient – accurate documentation)

Female, age 75–79 $457 0.457

Diabetes mellitus w/renal 

manifestations

$508 0.508

UTI $0 0.0

Diabetic nephropathy $0 Trumped by CKD stage 3

CKD stage 3 $368 0.368

Mild degree malnutrition $856 0.856

Old MI $244 0.244

BKA status $678 0.678

Total $3,111 3.111

Difference $2,492 2.492

Page 8: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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ICD-10 CM/PCS

• Volume of codes

• Lack of familiarity with ICD-10-CM/PCS

• Limited coding advice

• Inadequate documentation to support procedures and diagnoses

• New and revised coding guidelines

• Dealing with dual code sets

Unique Challenges

16

Specificity Required in ICD-10-CM Codes

Covered ancillary services

J45.51

Severe persistent asthma with acute 

exacerbation

S82.45A

Non‐displaced bimalleolar fracture of left lower leg, initial 

encounter

Non‐covered

ancillary services

J45.909

Asthma, NOS

S82.899

Other fracture of unspecified lower leg

Page 9: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Technology Drivers

• Computer-assisted coding

• Computer-assisted physician documentation

• Computer-assisted clinical documentation improvement

18

The Technology Advantage

• Natural language processing

• Electronically capture codes & clarifications

• Enhance CDIS and coder productivity

• Track patients, identify risks, monitor outcomes, improve core and quality measures

Page 10: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Outpatient CDI Strategies, Resources, and Methodologies

Overcome ICD-10 Challenges

20

Incomplete & Insufficient Documentation

• Infusion start and stop times

• Missing comorbid conditions

• Lack of specificity

• Failure to document links between various conditions

• Date of service errors

Examples

Page 11: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Case Study

CPT code Description Time parameters

96360 Intravenous infusion, hydration, 

initial

31 minutes to one hour

96361 Each additional hour

List separately in addition to code 

for primary procedure

96365 Intravenous infusion, for therapy, 

prophylaxis or diagnosis, specify 

substance or drug

Up to one hour

96366 Each additional hour

List separately in addition to code 

for primary procedure

96413 Chemotherapy administration, 

intravenous infusion technique

Up to one hour, single or initial 

substance/drug

96415 Each additional hour 

List separately in addition to code 

for primary procedure

Intravenous Infusion CPT Codes

1st qualifying initial hour must be at least 15 min.

Only if infusion interval time> 30 minutes 1

hour increment

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Lack of Medical Necessity

• NCD/LCD noncompliance

• High-cost medications

• Exceeding defined service frequencies such as units per day or yearly limitations

• Excessive medication units

Examples

Page 12: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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… that the healthcare service is medically necessary!

Not Assumed That Because Treating Clinician:

• Orders

• Prescribes

• Approves or

• Directs a service

24

Case Study

• Contractors shall allow CPT 77080– Dual energy x-ray absorptiometry: BMM

– When billed with any of the following ICD-9 codes:• 733.00 through 733.03

• 733.09

• 722.90

• 255.0

Bone Mass Measurement (BMM)

Page 13: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Avoid Medical Necessity Denials

• Create written policies• Encourage orders to be received

24–48 hours in advance of test – Allows for pre-screening of orders

• Hire certified coder or nurse to review orders received in advance for medical necessity

• Require physicians to attach ABN to order

• Require provision of provider contact number

26

Incorrect Coding

• Insufficient coder skill and experience

• Limited communication with provider

• Coding possible, probable, rule-out• Missing comorbid conditions• Inappropriate use of modifiers• Untimed codes• Charge description master errors

Examples

Page 14: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Uncertain Diagnosis

• Do not code diagnoses documented as “probable”, “suspected,” “questionable,” “rule out,” or “working diagnosis” or other similar terms indicating uncertainty

• Rather, code condition(s) to the highest degree of certainty for that encounter/visit, such as symptoms, signs, abnormal test results, or other reason for visit

This differs from coding practices in short‐term, acute, long‐term, and psychiatric hospitals

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Billing Errors

• Failure to submit all codes

• Unbundling

• Incorrect units

• Incorrect revenue codes

• Differences between order and billed medication units

• Place of service errors

Examples

Page 15: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Charge Description Master (CDM)

• Bundling rules, or what is included in each CDM item/service that is not separately reportable

• Which services are reported in specific time increments and the rules surrounding such reporting

• For pharmacy, billable units, wastage documentation requirements and associated acceptable billing practices

• Back-end processes to evaluate claim accuracy • Retrospective audits

Identify and Initiate:

30

Benefits of Outpatient CDI Program

• Improve clinical documentation• Reduce medical necessity denials• Reflect accurate severity-adjusted

profiles• Support increasing adoption of

value-based and risk adjustment payment models

• Meet demands of accountable care organizations (ACOs)

• Negotiate fair contracts

Page 16: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Identify services

Revenue cycle 

Document risk

Prioritize focus

Before Starting

• Volume• Risk • Denials

Deep dive

High volume –high risk

32

If it’s not documented, it didn’t happen!

Getting Started

• Align CDI with revenue cycle processes

Page 17: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Assess

Educate

Remediate

Monitor

Outpatient CDI Process

34

Assess

• Denials measurement– Dollar, weekly, monthly, YTD

volume

– Historic versus current

– Identify denial trends and patterns

– Focus on high-dollar denials

• Rework measurement– Dollar and volume

Page 18: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Educate

• Explain documentation requirements• Educate providers on what information is needed to

code– Engage physicians and staff

• “What’s in it for me?”• Assist provider in ensuring patient(s) receive

benefits they are entitled to based on physician properly expressing their clinical judgment and medical decision-making

• Assist provider document rationale for ordering, prescribing and providing

36

Remediate

• Establish timelines, goals, and objectives

• Conduct root cause analyses• Develop internal query process to keep

communication between provider and coder open– Redefine “concurrent”

• Create internal policy to promote quality coding processes and avoid unspecified codes

• Update EHR templates• Reimbursement cannot be a

consideration• Utilize technology to manage volume

Page 19: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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ICD-10 CM/PCS Specific Remediation

• Eliminate coding cheat sheets– Otherwise unspecified codes will persist – No incentive for documentation improvement

• Implement or update EHR templates– Support documentation for new ICD-10

CM/PCS codes

• Base ICD-10 CDI initiatives on unique needs of organization’s providers, coders, and staff– Ensure training addresses relevant, real-life

patient encounters– Use hands-on clinical documentation and

coding exercises

38

Monitor

• Quarterly chart reviews for quality of clinical documentation– Indications for procedure– How many orders require clarification or rework– Number of denials and appeal letters– Denial rates and $ impact– Numbers of questions or volumes of

communication from physicians– Percentage of cases with documentation

deficiencies

Page 20: Emerging Outpatient CDI Drivers and Technologies · ICD-10 CM/PCS • Volume of codes • Lack of familiarity with ICD-10-CM/PCS ... – When billed with any of the following ICD-9

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Summary

• Expand clinical documentation improvement beyond inpatient

• Focus on compliant documentation and medical necessity

• Align outpatient CDI program with ICD-10 CM/PCS initiatives

• Utilize technology as a resource• Ensure relevant training• Provide ongoing assessment• Engage outpatient CDI

professionals

CDI Elements of Success

40

Thank you. Questions?

In order to receive your continuing education certificate(s) for this program, you must complete the online evaluation. The link can be found in the continuing education section at the front of the workbook.