(already subscribe? log in).

Hospital’s Medicare billing examined

THIS STORY APPEARED IN
Boston Articles
February 04, 2012|By Liz Kowalczyk

Federal investigators have subpoenaed six years of records from Beth Israel Deaconess Medical Center as part of an investigation into whether the hospital overbilled Medicare by admitting patients for short stays who could have been treated less expensively as outpatients.

Beth Israel Deaconess received a subpoena from the office of the inspector general of the US Department of Health and Human Services and the US Department of Justice, in 2010, the hospital disclosed in financial statements over the last six months.

The Boston teachinghospital said it did not know whether it would have to pay a fine or settlement, or the potential amount, but acknowledged in its financial filings that the outcome of the investigation could harm profits.

“At this point we don’t have any details about their findings or how this will unfold,’’ hospital spokeswoman Judy Glasser said. “If there have been errors, we are committed to fixing them and to being completely responsive to any guidance from the government.’’

A spokeswoman for the inspector general did not return a call from the Globe, and a spokesman for the Justice Department declined to comment.

A patient who is treated in the emergency room or has a procedure like a cardiac catheterization may need to stay in the hospital for more than several hours. Hospitals can classify the patient as being in “observation’’ status, which is usually less than 24 hours but can be longer. The status means the patient is not sick enough to be admitted, but is too sick to go home.

If doctors decide the patient needs more intense or longer-term care, they can admit the patient to the hospital, which generally costs Medicare $5,000 more than an outpatient observation stay, according to the Health Care Compliance Association in Minnesota.

But when hospitals admit large numbers of patients for brief stays, like over one night, federal officials increasingly scrutinize whether those admissions are medically necessary or if they are simply an unnecessary cost that enhances hospital revenue, said several attorneys who specialize in health care law.

The problem, the attorneys said, is that Medicare’s guidance on when hospitals should observe patients and when they should admit them is unclear, leaving hospitals vulnerable to unintentional errors.

“It’s a hugely confusing area,’’ said Seattle lawyer Robert Homchick, who specializes in health care regulatory law.

Advertisement
Advertisement
|
|
|
|