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Office of Medicaid (MassHealth) - Review of Evaluation and Management Claims Paid to Resil Medical Associates, P.C.

April 24, 2017 · Office of Medicaid (MassHealth) · Read the full official report (PDF) ↗ · official site ↗

Published April 24, 2017 Audit covers January 1, 2011 – December 31, 2015 Under Suzanne M. Bump · 2011–2023

In plain English
The auditor found that Resil Medical Associates did not always bill MassHealth correctly and had problems with staff qualifications, supervision, and required nurse practitioner paperwork.
source
“RMA improperly billed MassHealth for approximately $17,346 of E/M services performed by nurse practitioners (NPs).”
Read the plain-English breakdown
What is this?

This is a Massachusetts State Auditor review of certain MassHealth payments made to Resil Medical Associates for patient office-visit services from 2011 through 2015.

“OSA has conducted an audit of selected evaluation and management (E/M) claims paid to Resil Medical Associates, P.C. (RMA) for the period January 1, 2011 through December 31, 2015.”
Why was it audited?

The auditor chose this area because MassHealth spends a large amount on these kinds of office-visit claims, and past audits found improper physician claims.

“Because of the significant amount of these expenditures, as well as prior OSA audits that identified unallowable physician claims for E/M services, OSA is continuing to audit this type of claim.”
Why it matters

Incorrect Medicaid billing can waste public money and weaken trust in MassHealth, a major public healthcare program.

“As with any government program, public confidence is essential to the success and continued support of the state’s Medicaid program.”
What's in it for me?

If you are a taxpayer or MassHealth member, this audit is about whether public healthcare dollars were spent properly and whether patients received care from appropriately qualified and supervised staff.

“This supervision is essential for ensuring that members receive quality care and for enabling non-independent NPs to obtain clinical guidance directly from an onsite physician if necessary.”
The bottom line

The auditor concluded that RMA did not submit all claims according to the required rules.

“Did RMA submit claims to MassHealth for evaluation and management (E/M) services in accordance with applicable laws, rules, and regulations?”
What happens next

The report recommends that RMA repay identified overpayments, fix its billing system and controls, ensure proper supervision, and create required arrangements for nurse practitioners.

“RMA should collaborate with MassHealth to repay the overpayment of approximately $17,346 that we identified.”
Why it's significant

MassHealth is a large public program, so even provider-level billing problems matter because Medicaid spending is a major part of the state budget.

“Medicaid expenditures represent approximately 39% of the Commonwealth’s total annual budget.”
Jargon, unpacked

“E/M” means evaluation and management, which are office or outpatient visits. “NP” means nurse practitioner. “Modifier codes” are billing codes that tell MassHealth who actually provided the service so the right payment rate is used.

“NPs are nationally certified, state-licensed medical professionals who can practice medicine as part of a healthcare team and in collaboration with physicians and other healthcare professionals.”
Identified in this audit - source-verified
$19,813

What the Auditor checked

What the Auditor found

RMA used registered nurses to perform high-complexity evaluation and management services.
licensing/inspectionspublic safetyinternal controls

Why it matters: Members may have received care below the level for which MassHealth paid, which could jeopardize their health and safety.

Standard: 244 CMR 3.01, 244 CMR 4.02, 244 CMR 4.05(3), and 244 CMR 4.04 ( Section 3.01 of Title 244 of the Code of Massachusetts Regulations; 244 CMR 4.02; 244 CMR 4.05(3); 244 CMR 4.04 )

4 recommendations
  • RMA should cease having registered nurses perform high-complexity evaluation and management services for members.
  • RMA should update its website to accurately reflect employee licenses.
  • RMA should reimburse the Commonwealth for $2,467 of improper payments.
  • RMA should work with MassHealth to identify additional amounts owed for instances when Dr. Resil and registered nurses worked in the same location.
Agency response & Auditor reply
Agency: "RMA did not knowingly hire an unlicensed Nurse Practitioner."
Auditor: "According to its response, RMA agrees with our finding that unlicensed employees performed E/M services before receiving the appropriate licensure."
RMA billed nurse practitioner services as physician services and received overpayments.
internal controlsrecordkeeping/documentationvendor oversight

Why it matters: MassHealth paid the higher physician rate, reducing funds available for additional services to members.

Standard: 101 CMR 317.04(3), 130 CMR 450.301(A), and 130 CMR 433.409(D) ( 101 CMR 317.04(3); 130 CMR 450.301(A); 130 CMR 433.409(D) )

4 recommendations
  • RMA should work with MassHealth to repay approximately $17,346.agency: agreed
  • RMA should modify eClinical so the actual provider information is recorded and used for billing.
  • RMA should implement internal controls to ensure claim accuracy, including provider identity and modifier codes.agency: already implemented
  • RMA should periodically review MassHealth billing requirements and ensure billing staff follow them.
Agency response & Auditor reply
Agency: "Conclusion: we agree to reimburse MassHealth of the extra 15% paid for services rendered by the Non-independent Nurse Practitioner during that time frame."
Auditor: "OSA disagrees with RMA’s response that its independent NPs, who work as salaried employees, defer their right to bill MassHealth with their provider identification numbers."
RMA did not always have a supervising physician onsite for non-independent nurse practitioners.
internal controlspublic safetylicensing/inspections

Why it matters: Members may not have received quality care supported by direct onsite physician guidance.

Standard: MassHealth All Provider Bulletin 235 ( MassHealth All Provider Bulletin 235 )

1 recommendation
  • RMA should ensure a physician is always present to personally supervise non-independent nurse practitioners serving members.agency: disagreed
Agency response & Auditor reply
Agency: "Thus I respectfully disagree with that notion and should not be financially penalized for that."
Auditor: "In its response, RMA disagrees that non-independent NPs need personal supervision from a collaborating physician when performing services."
RMA lacked required collaborative arrangements and prescriptive-practice guidelines for independent nurse practitioners.
recordkeeping/documentationinternal controlslicensing/inspections

Why it matters: RMA lacked documentation showing authorized services, procedures, and prescribing guidelines intended to ensure consistent and proper healthcare.

Standard: 130 CMR 433.433(C)(2), 244 CMR 4.07(2)(a), and 243 CMR 2.10(5)(a) ( 130 CMR 433.433(C)(2); 244 CMR 4.07(2)(a); 243 CMR 2.10(5)(a) )

2 recommendations
  • RMA should develop a collaborative arrangement for each independent nurse practitioner that details medical services and prescriptive practices.
  • RMA should establish policies and procedures to ensure independent nurse practitioners work within their licensure and not as physicians.
Agency response & Auditor reply
Auditor: "However, both MassHealth and Board of Registration in Medicine regulations require physicians and their NPs to enter into collaborative arrangements before NPs prescribe to MassHealth members."

Verified dollar findings

Improper payments identified $19,813

Money paid out that the audit found should not have been - overpayments, unallowable and nonreimbursable charges, improper claims.

$2,467 - improper payments
$17,346 - overpayment

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