Wednesday, February 23, 2022

Cleaning around the margins: Getting what you’re owed through proper coding

A physician’s goal is to care for their patients, but a key part of being able to provide that care is the eternal quest for payment.

One way to ensure that a practice maximizes its coding regimen is to make sure that each encounter can be efficiently billed. Adhering to the following expert coding tips can help practices supercharge their revenue.

Don’t tinker around the margins


Bill Dacey, MHA/MBA, president and CEO of The Dacey Group, says that when some people think of supercharging their coding practices, they think of billing for smaller things that they’re not already doing. He warns this approach may not be as effective as expected.

“My approach to this has always been to stop working the corners and the little $3 codes and counting all that little stuff,” he says. “Why don't you just make sure you're doing the stuff that you do 99% of the time? That will probably get your revenue where it's supposed to be.”

Dacey says that mastering the new outpatient coding guidelines, released last year, can help shore up revenues by enabling the practice to bill for what the new guidance allows. He gives the example of code 99213.

“It’s the most commonly reported code in the country, and it's been a 99213 for 30 odd years, but with the changes that came in 2021, it makes it a whole lot easier to call that a 99214,” he says.

Dacey says this feels off to long-time physicians because it’s been an evaluation and management level three for so long, but now it is a four.

“If (a practice) wanted to supercharge their coding, I would do it with the codes that had the real money,” Dacey says. “You're doing the exact same thing you did two years ago, but now it's worth 50% more.”

This change can be uncomfortable to start with, but Dacey says it is lucrative.

“There (are) only five established patient codes… and the 99213, which has been the workhorse code forever, has now kind of slipped down a notch,” he explains. “Family medicine alone did $3 billion in fours last year and internal medicine another $3 billion. And that's where the money is, like, most all of the money.”

Documentation is key


Nancy Enos, FACMPE, CPC-I, coding consultant with Enos Medical Coding, says that the key to getting the most revenue through coding is proper documentation of time spent.



“It's all about the documentation,” she says.

A focus on extensive documentation allows practices to keep track of all the time spent on a patient encounter enabling the practice to efficiently bill. She recommends physicians should receive brief internal or external training focusing on documentation.

“(This) will pay off in spades, because if they write certain elements, certain parts of their note, they will translate to the higher codes,” she says.

Enos says that this documentation becomes very important when billing for non-patient facing activities.

Non-patient facing activities


Enos also recommends that practices understand which non-patient facing activities still count for time.

“There are several different things that count as reportable time as long as they're performed by a billing provider on the same date as the billable visit,” she says. “It can't be the day before, it can't be the medical assistant, it has to be a billing provider and it has to be the same date.”

Enos says these non-patient facing activities include:
  • Preparing to see the patient
  • Obtaining and reviewing separately obtained history
  • Ordering medications, tests, or procedures
  • Referring and communicating with other physicians
  • Documenting clinical information in the electronic or other health record
  • Independently interpreting results and communicating them to the patient, family, or caregiver
  • Care coordination

“There are so many things that they can just confirm, like the patient history and labs that were collected by their support staff,” she says. “Then when they review it on the day of the service before they see the patient, that could be another 20 minutes that is billable time toward the level of service. As well as after the patient leaves, any calls to physicians to put in place any coordination of care, documenting and updating the medical record itself is now billable time that never was counted before 2021.”

Enos also recommends making sure that a practice keep track of time when it comes to telehealth appointments.

“There are instances where a telemedicine visit results in advice to come into the office because the patient does need to be seen,” she says. “You can only bill one visit per patient per day, so it's just the office visit. The telemedicine visit is separately billed, but you can bill for total time spent on the day of the encounter. If you're using time, then you could add the time together for the telemedicine visit and the in-office visit.”

She notes that this is also a good reason to get your practice’s documentation in order, as properly documented activities are more likely to stand up to scrutiny from insurance companies.

Enos says that over the past year of audits she had seen some bullet statements which only listed the total time spent one or more of a list of the activities that count without a specific time accounting of time spent on each task.

“I would not want insurance companies to audit that I may have done one of the following,” she says. “That doesn't seem very provable.”


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Modifier 25: Are you using it correctly?

Q:Can you review the correct use of modifier 25?


A:The Centers for Medicare & Medicaid Services (CMS) continues to identify the potential overuse and misuse of Current Procedural Terminology (CPT®) code modifier 25. This issue has been raised multiple times over the years, so it is worth revisiting again.

To understand why modifier 25 is under this type of scrutiny, physicians need to understand how its use is defined. Simply put, modifier 25 is appended to an E/M code when a procedure and a separate and significant E/M service is performed by the same physician during the same session or on the same date. For example, an established patient comes to your office with a suspicious lesion and, based on your assessment, you decide to excise it. You wonder if you can report an E/M code with modifier 25 appended, as well as the minor procedure code for excising the lesion. The definition of what is “separate and significant” is at the heart of whether both an E/M with modifier 25 and a procedure code may be reported together.

Definition of Modifier 25


Medicare and CPT require that modifier 25 be used only on claims for E/M services and only when the E/M service is provided by the same physician on the same day as a global procedure or service. In addition, payment is made only if the physician indicates that the service is for a significant, separately identifiable E/M service that is above and beyond the usual preoperative and postoperative work required on the day of the procedure. The physician must appropriately and sufficiently document both the medically necessary E/M service and the procedure in the patient’s medical record to support the claim for these services, even though the documentation is not required to submit with the claim.



Significant and Separately Identifiable


What exactly does significant and separately identifiable mean? How do you know when you have performed this service and therefore need to document a significant and separately identifiable E/M service? It is important to note that the relative value unit (RVU) for each minor procedure includes pre-service work, intra-service time, as well as post-procedure time.

Reporting an E/M code and a procedure code when your evaluation is limited to assessing the specific problem (for example, an abscess) is essentially double billing for the pre-service evaluation. Your E/M must significantly exceed the pre-service evaluation already paid as part of the procedure for it to qualify as significant and separately identifiable. If it does not, only the procedure should be billed.

A different diagnosis code is not needed, and in some cases the diagnosis code for the E/M code and the procedure code will be the same. What must be documented is the history, exam, and decision-making process that includes attention to more than the patient’s targeted chief complaint that is the reason for the minor procedure.

Example of an encounter resulting in the reporting of both a procedure code and E/M code with modifier 25, with one diagnosis:A patient arrives at your office complaining of bright red blood from the rectum. You conduct a detailed history and physical exam including abdominal, rectal, and genitourinary examination. You then perform a diagnostic anoscopy. Your medical decision making is aided by the anoscopy findings but is based on the history and physical exam. Report the anoscopy and an appropriate E/M code with modifier 25. Only one diagnosis should be reported.

Example of an encounter resulting in only reporting a procedure code: A woman arrives at your office for a repeat injection of steroid at the base of her right thumb to relieve arthritis pain and swelling. She mentions that she has recently had the same pain on her left hand. After a focused exam of her left hand, you decide to perform a second injection. Report the injection code with modifier 59 and modifiers to indicate left thumb and right thumb as appropriate. No separate E/M code should be reported.


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Tuesday, February 22, 2022

The one trick to negotiating reimbursement rates

Last I checked my plumber charges me more than some physicians make for some services. It’s not to say that plumbers don’t work hard, but they certainly didn’t have to invest an inordinate amount of time and money to get specialized degrees. What happened within the last few years and, more importantly, what can you do?

The change in reimbursement has been quite dramatic. As someone who has negotiated hundreds of contracts, I’ve seen some shockingly low reimbursement rates from some of the payors. The fundamental reason that commercial reimbursement is constantly cut is because these organizations are often for-profit and publicly traded companies with stockholders that require consistent positive financial performance year-after-year. All of this is done at the expense of physicians.

What can a physician do? It may be time to negotiate your reimbursement rates.

Negotiating your reimbursement can be tough; you might think that the insurance company has all the negotiating power - but you might be surprised. Every practice that I’ve worked with has at least a handful of advantages to negotiating their contract.



One physician I knew was getting remarkably low reimbursement from one particular insurance company. After asking his provider representative for an increase, he was quickly denied - even though he was the only specialist in the area.

After I took the information and presented our argument in a way that the insurance company would respond, he was able to get a rate that was higher than what the other payors were reimbursing for the same services. This meant thousands of dollars to his bottom line.

The trick was to creatively craft the argument in a way that the insurance company would understand. After we had strategically conveyed the rationale behind the increase request, the insurance company couldn’t say no.

After negotiating as many contracts as I have, I’ve found that there a few simple strategies that work in your favor and can result in a favorable negotiation.


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