South Carolina-based Companion Global Healthcare expanded its international network this week by adding three new international hospitals. Inking the two separate deals—with International Hospital Corp., of Dallas, and India's Wockhardt Hospitals Group—allows Companion's American clients a wider choice for elective surgery and other medical procedures at Joint Commission International-accredited hospitals.
The addition of Hospital CIMA San José in Costa Rica, and two Wockhardt hospitals in Mumbai and Bangalore is yet another step in the maturation of the medical travel industry. Now Companion's individual and employer-sponsored clients, as well as more than one million members of Blue Cross Blue Shield and BlueChoice HealthPlan of South Carolina, can access care at these facilities at preferred network rates.
"International patients have experienced at Wockhardt Hospitals excellent clinical outcomes in an environment of personalized care, which is highly affordable," says Vishal Bali, CEO of Wockhardt Hospitals Group. "Companion Global Healthcare has empanelled our JCI-accredited facilities for elective care of its insured members after an extensive quality survey. This truly is an example of how globalization of healthcare is providing both insured and uninsured people the choice of affordable centers of excellence across the globe as their treatment destinations."
CIMA's CEO, Carole Veloso, points out that the full-service hospital employs English-speaking clinical staff, and Costa Rica is a relatively short flight from the U.S.
Since its start-up in 2007, Companion Global Healthcare continues to develop its hospital network, which now stands at 10 hospitals. Companion President David Boucher says that when the entire network is completed, Companion will probably have about 20 international hospitals. The firm is trying to be both deliberate and diverse as it includes hospitals that meet the various needs of potential medical travelers. With this in mind, Boucher is trying to add hospitals that are high in value and quality.
Gary Wood, Ph.D., International Hospital Corp.'s chairman and CEO, says the agreement with Companion bolsters his system's reputation of delivering high-quality patient care. "For the past 12 years, we have provided a U.S. standard of care to hundreds of thousands of patients in Brazil, Costa Rica, and Mexico, and helped build the private acute care hospital industry in Latin America," he says.
The deals Companion is making today could pay dividends in the near future as U.S. employers and insurers consider creating medical travel options that share cost savings with individual members. In a recently released study, the Deloitte Center for Health Solutions predicts explosive growth that could reach 6 million outbound medical travelers by 2010.
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You are the new CFO. You've just been appointed at a hospital with significant revenue concerns, and you are eager to jump in and stabilize the institution. Your predecessor, try as he did, could not get the P&L statement to cooperate. Where can you search for some potentially overlooked revenue?
Consider the emergency department.
The ED is often wrongly considered an unavoidable drain on hospital revenue and resources. Factors such as increasing volumes of indigent and uninsured patients, difficult managed care contracts and pervasive caregiver shortages can leave hospital administrators feeling frustrated—and understandably so. However, the ED can be a great place to start a revenue cleanup because of its influence throughout the hospital. The ED accesses a great number of hospital resources, including radiology, pharmacy, lab and central supply, and it interacts closely with almost all of a hospital's outpatient services. Due to its far-reaching influence, improvements in the ED can spread to other departments.
As with any revenue enhancement project, lasting change can require a concerted effort. Before you commit, take a quick scan of your ED using the following five actions. All hospitals are different, and no hard-and-fast rules are guaranteed to improve ED financial performance. However, these tools can give you a general idea of the opportunity in your ED before you commit to the project.
Examine the frequency of your ED billing levels If your ED bills on a five-level system and the majority of patient visits are billed at levels one, two, and three, your billing is probably "left of center." You may have unclear definitions of your levels, or your coding staff may not understand how to apply the coding criteria. Accurately capturing payment for higher acuity patients is an essential component of ED financial success. In addition, coding and billing data may be your only method to evaluate your ED patient acuity patterns, which can be valuable information. Higher acuity may require higher resources, particularly during night shifts when volume decreases but acuity increases.
Determine if levels are appropriately tiered Do they accurately reflect patient care from lowest acuity to highest? In general, patients with the lowest acuity receive no diagnostic tests or treatments other than simple bandages and ointments. Mid-level visits often consist of one or two diagnostic studies, injection of medication and simple nursing support. High-level visits may involve longer, more resource-intensive stays for complicated procedures—these patients may be admitted or require follow-up. If your ED coding reflects a different pattern, take a closer look.
Find out if nurses and coders participated in criteria development Ask around. Medicare allows individual hospitals to design their own ED evaluation and management criteria. If clinicians weren't involved in this process, a disconnect may exist between caregiver documentation and the coding process. If nurses are unclear what documentation is necessary, services rendered may not match services billed. Coders need to understand how various nursing services reflect resources that can only be captured in the coding of the appropriate ED level.
Investigate billing for the clinical decision unit/observation unit (if you have one) Observation is a time-intensive process, and if clinical staff members don't understand the amount and type of documentation that needs to be recorded, billing and compliance can be compromised. In fact, coding observation services requires such detailed documentation that you may wish to utilize a dedicated form. Documentation needs to include the time the patient was admitted to observation care, progress notes throughout, the time the patient was discharged from observation care, discharge notes, and other items. Correct payment also depends on whether the patient was first seen in the ED or clinic or received critical care, regardless of where they were first seen. Services such as EKG interpretations and breathing treatments can be billed separately but are sometimes overlooked. Unless you have a designated form for capturing all of these services, your nurses and physicians may find it difficult to meet the documentation requirements.
Ensure every service performed in the ED is listed on the chargemaster Services should be listed even if Medicare does not reimburse the service. Other payers might reimburse and, in fact, Medicare requires that certain services be listed regardless of payment. Ask nurses and ED physicians to take a close look. As a general rule, if you have fewer than 300 E/M levels, surgical, and diagnostic procedures on your ED chargemaster, you may be missing some valuable services.
Addressing ED coding, billing, and compliance often requires a concerted effort, but the returns can be significant. In addition, revenue and compliance goals can be achieved in a timely manner when pieces fall into place. Educating clinical staff jump-starts documentation improvements, and chargemaster cleanup can identify lost revenue in short order. Then, as CFO, you can take comfort that lasting change is within reach.
Caral Edelberg is a senior vice president with TeamHealth, a provider of hospital-based clinical outsourcing and administrative services. She can be reached at Caral_Edelberg@teamhealth.com .
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California officials have nixed Anaheim Memorial Medical Center's $57-million purchase by Pacific Health Corp., which faces allegations that it defrauded Medicare and Medi-Cal. This was the third time that an agreement to sell Anaheim Memorial has unraveled. The Attorney General's office cited several factors in the decision, including "pending criminal investigations" and a civil complaint filed by Los Angeles City Atty. Rocky Delgadillo accusing three hospitals of recruiting homeless people for costly and unjustified treatment.
The Bush administration has announced that states won't be penalized for failing to install restrictions making it harder for middle-income children to participate in a federal-state health insurance program, at least for now. States had been directed to make the changes in their State Children's Health Insurance Program by August 18 or face financial penalties. Among the required changes include that children must be uninsured for one year before they could enroll; and at least 95% of poor children eligible for Medicaid or SCHIP were already in those programs before states covered higher-income children.
A man on disability since surgeons may have operated on him with instruments coated in hydraulic fluid will be able to sue Duke University Medical System after a judge ruled that the $14,000 price tag to bring the grievance before a panel of private arbitrators is too costly. The ruling could be repeated in other courtrooms around the state, and it echoes a decision by the North Carolina Supreme Court earlier this year that found mandatory arbitration agreements can make it too pricey for consumers to pursue their disputes. The ruling could also help create a more favorable legal climate for an untold number of the 3,648 patients who may have been operated on in late 2004 with contaminated instruments at two Duke hospitals.
Despite the mass exodus of doctors from the New Orleans area after Hurricane Katrina, a journal is reporting that doctors have returned to the city at a rate that has pushed their per-capita number above the national average. The American Journal of the Medical Sciences says the number of doctors in Orleans, St. Bernard, Plaquemines, and Jefferson parishes has grown at from 239 doctors per 100,000 people in 2005 to 256 doctors per 10,000 in 2007. The national average is 237 doctors per 100,000, and the trend in New Orleans is one of many signs indicating the city's healthcare system is recovering, medical professionals say.