Vol. XXXVI, Number 42
December 12, 2005

Michigan Health & Hospital Association

6215 West St. Joseph Highway Lansing, MI 48917

(517) 323-3443

Fax: (517) 323-0946

www.mha.org

IN THIS ISSUE

MHA Advocates on Capitol Hill
Michigan-Specific Conference on Medicare Part D Set for Wednesday
Successful Harvest Food Drives Completed
MSA Issues Proposed Policy for Outpatient Observation Services
JCAHO Announces Field Review
Policy Panel Discusses Legislation
Keystone: ICU Results Developed into DVD
MHA Winter Conference to Focus on Leadership
MHA HEALTH PAC Campaign Nears End
News to Know

MHA Advocates on Capitol Hill

Last week, representatives of the MHA and a number of Michigan hospitals traveled to Washington, DC, to make a final advocacy appeal on key health care funding issues in the federal budget reconciliation process and to address a number of hospital-specific policy matters. The MHA hosted a reception Monday evening that was well attended by Michigan congressional delegation staff, as well as Gov. Granholm’s Washington office staff. The MHA also led a series of legislative visits, including direct meetings with U.S. Reps. Mike Rogers (R-Brighton), Fred Upton (R-St. Joseph), Dave Camp (R-Midland) and Joe Schwarz (R-Battle Creek). Finally, the MHA participated in the American Hospital Association Federal Budget Advocacy Day with hospital leaders from across the country.

As the federal budget reconciliation process nears completion, the MHA is pressing hard to protect Michigan’s managed care provider tax program and the $280 million in annual funding it provides for the Michigan Medicaid program. The MHA is also advocating for an extension of the moratorium on specialty hospitals and a fix to the “75 percent rule” for rehabilitation services. Members with questions should contact Laura Appel at the MHA.

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Michigan-Specific Conference on Medicare Part D Set for Wednesday

The Centers for Medicare & Medicaid Services (CMS) will facilitate a conference call this week regarding the impact of the Medicare prescription drug benefit. Chief medical officer for CMS Region V, Susan Nedza, MD, MBA, FACEP, will discuss specific implications of the drug benefit plan as it relates to Michigan health care providers and the patients they serve.

The hour-long call will take place Wednesday at noon and can be accessed toll-free by calling (888) 730-9138 and using the pass code “Michigan.” As directed in an e-mail last week, members are encouraged to share this information with medical staffs, discharge planners, pharmacists and other health care providers who may be interested in participating.

The PowerPoint slides for this presentation may be accessed online and additional information is available on the CMS Web site. Members with questions should contact Kevin Downey at the MHA.

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Successful Harvest Food Drives Completed

Reports from a majority of participating members show that the MHA family has once again made great strides in helping the Food Bank Council of Michigan (FBCM) fight hunger statewide. More than 110 MHA-member organizations held food drives for the 2005 Michigan Harvest Gathering, resulting in contributions to FBCM-member food banks of nearly 284,000 pounds of groceries and more than $42,000. A list of participating health care organizations and the amounts they collected has been sent to members.

Bronson Healthcare Group, Kalamazoo, had a particularly successful campaign that encompassed Halloween festivities. According to “Chief Hobgoblin” Matt Lemmer, the system’s food drive donations of nearly 25,000 pounds last year inspired the project team to strive for even more. The team set a goal of 30,000 pounds, but Bronson’s 2005 Michigan Harvest Gathering food drive resulted in donations of 32,000 pounds of groceries and $96 to FBCM-member food bank Kalamazoo Loaves and Fishes.

Lemmer said a main campaign focus was the opportunity for the health system to lead in a different way and help heal people outside of the hospital. Although no prizes were offered, the system’s more than 4,000 employees took pride in “outgiving” fellow staff members in friendly competitions. To alleviate logistical difficulties experienced storing last year’s donations, the main hospital’s receiving dock staff volunteered their area as a central collection point. These employees weighed the food, loaded it on pallets, and packed it into a 24-foot truck rented especially for the food drive. Donations from off-site locations were picked up by the health system’s delivery truck.

Lemmer said that the food drive’s success is put in perspective by statistics from Kalamazoo Loaves and Fishes. Although the health system collected 32,000 pounds of groceries, the regional food bank distributed more than 77,000 pounds of food to needy Kalamazoo County families in November alone. Bronson’s future goal is to collect enough food to feed hungry residents for a full four weeks. For more information on Bronson’s successful 2005 campaign, contact Lemmer at (269) 341-6486.

Ten MHA members collected in excess of 10,000 pounds of groceries for the 2005 Michigan Harvest Gathering — four more than broke that milestone in 2004. Memorial Medical Center of West Michigan, Ludington, increased its 2004 donation by an incredible 86 percent to 10,684 pounds. Borgess Health Alliance, Kalamazoo, collected 13,325 pounds and $15, an increase of more than 38 percent. With 10,250 pounds, the food drive at Hackley Hospital, Muskegon, yielded 32 percent more than last year. Garden City Hospital collected 26,241 pounds, an increase of nearly 30 percent. Other facilities that donated more than 10,000 pounds include Marquette General Health System; Port Huron Hospital; South Haven Community Hospital; Spectrum Health, Grand Rapids; and Saint Joseph Mercy Health System, Ann Arbor. The MHA and the FBCM extend heartfelt thanks and congratulations to every participant in the 2005 Michigan Harvest Gathering. For more information, contact Linda Dicks at the MHA.

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MSA Issues Proposed Policy for Outpatient Observation Services

The Medical Services Administration (MSA) recently issued a proposed policy bulletin to expand Medicaid coverage of hospital outpatient observation services based on the final Medicaid budget for fiscal year 2006. Effective April 1, 2006, Medicaid intends to implement Medicare’s coverage policy relating to observation services. Claims for observation should be submitted with bill type 13x, using the following codes:

 
Revenue code: 762 — Observation Room
Procedure code: G0378 — Hospital Observation per Hour
G0379 — Direct Admit Hospital Observation
              (must be billed with procedure code G0378)
 

To qualify for Medicaid reimbursement under the proposed policy, observation services must:

  • meet the Medicare diagnoses requirements — one diagnosis on the claim must be related to chest pain, congestive heart failure, or asthma and be located in the admitting or primary diagnosis fields
  • have a minimum duration of eight hours
  • be included on a claim with an emergency department, clinic or critical care visit on the day before or day of observation services (G0378 only)
  • include no service with payment status “T” on the claim (“T” or “V” for G0379) occurring on or one day prior to the observation service date

Currently, coverage for Medicaid outpatient observation services is limited to two cardiac procedures, as Medicaid does not pay for observation services provided to outpatients in the emergency department who are determined by a physician to need observation care. The proposed policy expands coverage by allowing Medicaid reimbursement for any observation service that meets the new criteria. However, it is not meant to reclassify hospital inpatients to an outpatient observation status when they meet the McKesson InterQual® inpatient criteria.

A key concern with the proposed policy is its failure to cover observation services for infants and children, who represent a significant portion of the Medicaid population. The MHA will raise this and other concerns in its comment letter to the MSA regarding the proposed policy and encourages members to submit their comments to the MSA prior to the Jan. 2, 2006, deadline. Members are also encouraged to contact Vickie Seal at the MHA regarding specific concerns or questions.

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JCAHO Announces Field Review

On Nov. 30, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) announced the field review of the Candidate 2007 National Patient Safety Goals. This candidate set is a draft of goals open for comment. The Joint Commission first introduced its National Patient Safety Goals in January 2003. Each goal included specific, evidence-based requirements that identify opportunities for reducing risk to patients. An advisory group consisting of patient safety experts and health care professionals assists JCAHO in the identification and development of the goals and requirements.

For 2007, the advisory group is likely to recommend that several new goals be added to most of those identified for 2006. Two existing goals will be recast as requirements under a broad new goal on risk assessment, for which program-specific requirements have been drafted. Comments on the proposed patient safety standards must be returned to JCAHO by Jan. 8. For more information, contact Sam Watson at the MHA.

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Policy Panel Discusses Legislation

The MHA Legislative Policy Panel met recently to discuss several current state and federal legislative initiatives impacting Michigan hospitals. Tammy Lundstrom, MD, JD, senior vice president and chief quality/safety officer at the Detroit Medical Center, and Judene Bartley, vice president of Epidemiology Consulting Services in Lansing, discussed House Bill 5325, legislation mandating flu vaccines be offered to elderly patients admitted to Michigan hospitals. The panel recognized that most Michigan hospitals are already providing flu vaccine to elderly patients and recommended that the MHA support this legislation on the condition that amendments addressing vaccine shortages and a sunset provision are added.

The panel was briefed on the state House Republicans’ Medicaid Reform Plan. Soaring costs and increasing enrollment in the state Medicaid program concern state lawmakers, prompting the formation of a new task force chaired by Rep. Gary Newell (R-Saranac). In addition, the panel received updates on several pieces of state legislation, including the comparison of Medicaid and Medicare reimbursement rates in an annual report; the business tax relief and economic development proposal; and codifying the delegation of certain tasks involving the use of surgical instrumentation to unlicensed individuals who have been trained in surgical technology and surgical first assisting.

The panel received a regulatory update on the statewide trauma care system. The Trauma Care Commission, established in 2002 by former Gov. Engler, will soon offer its initial recommendations to the Michigan Department of Community Health on the rules governing the coordination of trauma care in Michigan. The panel was also informed of the progress of oral arguments before the Michigan Supreme Court on Wexford Medical Group v. City of Cadillac, a case involving the taxation of hospitals’ off-campus facilities.

In final action, the panel discussed the MHA’s involvement in public education efforts related to the Medicare prescription drug program and received an update on the MHA’s efforts to protect Michigan’s managed care provider tax program as the federal budget reconciliation process moves forward (see related article). For more information, contact Brian Peters at the MHA.

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Keystone: ICU Results Developed into DVD

Due to the success of the October Keystone: ICU conference and significant public attention, a DVD featuring the initiative’s latest results has been developed. Copies of the DVD were mailed last week to Keystone: ICU participants and plans are currently under way to make it accessible through the MHA Keystone Web site. Each DVD accompanied a toolkit that contained newspaper articles from statewide/national media coverage, a customizable viewpoint, a project participant listing and viewing instructions for how best to screen the video.

The MHA recommends the DVD be shown internally, not only to allow the participants to see their work in action, but also to update senior management, the executive board and others. This five-minute video should also be played for business and community leaders, civic groups, religious congregations, local media, and elected and appointed officials at scheduled or standing meetings.

For more tools, including fact sheets and project media coverage from throughout the state, visit the MHA Keystone Center online. Members with questions should contact Kevin Downey at the MHA.

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MHA Winter Conference to Focus on Leadership

The MHA Health Foundation Small & Rural Hospital Conference, scheduled for Feb. 22 and 23 at the Shanty Creek Resort – Cedar River Village in Bellaire, will focus on refining vision and leadership, grasping the forces shaping the future and seizing the opportunities. Attendees will learn how to crumble old systems and rebuild to achieve a vision; explore opportunities by thinking about health care delivery as a consumer market ripe for major breakthroughs; identify ways to involve key stakeholders in achieving goals; and think about how to design products and services that drive growth. Organizations interested in becoming a conference sponsor should contact Erin Steward to discuss the many benefits. The conference brochure and registration materials will be mailed at the end of December and will be posted on the MHA Web site. Contact Leigh Anne Jewison at the MHA with questions.

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MHA HEALTH PAC Campaign Nears End

With just three weeks remaining in the 2005 campaign, the MHA HEALTH PAC has raised $198,744 toward its 2005 campaign goal of $300,000. Sixty-two hospitals/health systems have met or exceeded their organizational political action committee goals. MHA-member hospitals are strongly encouraged to take the necessary steps to ensure their 2005 HEALTH PAC goals are reached or exceeded by Dec. 31.

Campaign contributors secure membership to one of the following clubs: Trustees’ Club ($1,500+), President’s Club ($1,000+), Chairman’s Circle ($500+), Capitol Club ($350+) and Century Club ($250+). The Volunteers’ Club recognizes members of the volunteer community who contribute to the campaign. More information on the campaign, goal achievers and club members is available on the HEALTH PAC Web site. Members with questions about the MHA HEALTH PAC should contact Lori Latham or Courtney Lawson at the MHA.

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  • The MHA Health Foundation educational program, Secure APC Revenue: 2006 APC and CPT/HCPCS Updates for your Outpatient Data Cycle will be held from 9 a.m. to 3 p.m. Tuesday at the Kellogg Hotel & Conference Center, East Lansing, and Wednesday at the Sheraton Hotel, Novi. For more information, contact Erin Steward at the MHA.
  • The MHA Hospitals for a Healthy Environment Committee scheduled for Wednesday has been canceled. For more information, contact Sherry Mirasola at the MHA.
  • The PHA Benefit Administration Committee will meet Thursday. For more information, contact Marilyn Litka-Klein at the MHA.

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MHA Members can also refer to these items in our Weekly Mailing:
 
©2005 by the Michigan Health & Hospital Association. All rights reserved. Materials may not be reproduced without permission.