90862 Redux?

My original post on the problems with the 90862 CPT code has turned out to be one of the most popular posts on this blog.  I decided to revisit that post in the context of the impending code changes the first of the year.  The headline in this weeks Clinical Psychiatry News says it all: "New E&M Coding Set to Go Into Effect Jan. 1".  The article encourages psychiatrists to learn the new system in the hope that they will be able to get more fair reimbursement in the future.  The explicit downside is that more documentation will be required.  In my own practice more complex E&M codes can require anywhere from two to four times as much time and effort to document with additional time to managed the case apart from additional telephone calls, lab review, and consultation.  The implicit downside is that despite the promise of more reasonable reimbursement that will actually take political action as stated: "Values might rise in 2014, after the professional societies have a chance to survey psychiatrists on the new codes and the RUC (Relative Value Update Committee) looks at revaluing those codes..."

For anyone reading this who does not have a knowledge of this coding system this template from the American Academy of Family Practice provides a good summary.  To give a general idea of the subjectivity of this entire system, I have been documenting and billing 15 and 30 minute 90862s at my current employer for over two years.  Our coding expert told me that all of these notes would meet criteria for 99214.  Actual time with the patient is roughly 20-30 minutes with 10-20 minutes added onto that for associated tasks (lab ordering, call to other doctor, associated paperwork, etc).  I have been billing like this for most of my career, except in a previous specialty clinic where I used E & M codes.

The interesting aspect of this coding system that I always come back to (and can't emphasize enough) is the near total subjectivity of it.  I have described my 90862 procedure and that usually results in a note of about 300 to 500 words.  When I review the notes of other psychiatrists, I often see the note condensed to 4 brief sentences.  The entire note can be less than 75 words.  It is often difficult to tell if an actual conversation occurred between a doctor and a patient.  I describe this to point out the huge variation in the documentation of clinical practice and there is good reason for it.   Compulsive documentation takes an incredible amount of time.  It is usually not possible for me to complete the documentation that I think is necessary during the regular work day and I know I am not alone.  I have called primary care physicians at 7 or 8 PM to find many of them still there trying to catch up on all of the paperwork and documentation from that day.  That is a lot of time investment because of a vague guideline.

The most interesting aspect of coding is how it has been used to intimidate physicians by both the government and the insurance industry.  Apart from satisfying billing requirements most physicians engaged in compulsive documentation are doing it because of the threat of a coding audit.  In that situation the actual notes are reviewed and somebody makes a decision about whether the documentation meets certain coding requirements for a particular bill.  If the decision is no - the physician involved could face massive financial repercussions.  Some insurance companies will look at 10 notes and on that basis calculate a rate of overcoding and multiply that rate by the total patient they cover in that practice and demand repayment.   Although this physician has apparently not been told why the FBI decided to close down her practice, the tactics described on her blog are the similar to those described in cases of alleged billing "fraud".  Keep in mind the only scientific study of this process showed that professional coders could agree that a document reflected a particular billing code at a rate no greater than chance.

Anyone who has read along to this point have probably picked up on the fact that I am not very hopeful that this is a major reform in psychiatric reimbursement.  This whole system was invented to control physician reimbursement and not improve it.  It is a system that looks like it may have some objectivity on the surface but beyond the surface it is pure politics.  The best example I can think of is that any insurance company can decide to reimburse physicians at any rate they want.  They may decide for example that "Dr. Dawson has been billing 90862s for decades, why would we want to suddenly reimburse him for 99214s?  We will just pay him the same regardless of what his coding expert or billing document says."  Just another inefficiency that physicians need to tolerate that detracts from the provision of medical care.

George Dawson, MD, DFAPA  

King MS, Lipsky MS, Sharp L. Expert agreement in Current Procedural Terminology evaluation and management coding. Arch Intern Med. 2002 Feb 11;162(3):316-20.

Confusion about Capitation versus Fee-For-Service versus National Health Care

This is from the Shrink Rap blog this morning the consensus is that capitated care is better than fee-for-service care.  What is wrong with that picture?

Starting out with the much maligned fee-for-service (FFS) -  most medical and psychiatric services are not delivered in that context.  You can safely say that FFS, disappeared a long time ago.  According to a 2012 Medscape survey of 24,216 physicians across 25 specialties only 4% worked in cash only or concierge style practices. That means that everyone else is subject to varying degrees of insurance company discounting.  From my years of providing inpatient care for example,  there is a standard DRG payment based on a global discharge or admission diagnosis.  For the most common psychosis DRGs the standard payment is $4,500 no matter how long a person is stays in the hospital.

The same thing happens on the outpatient side.  I have discussed this more extensively is a previous post.  Looking at the commonest outpatient billing code - actual reimbursement for providing services can be as little as $22.45 per visit.  In the case where bills are submitted with CPT codes (common to all of medicine) Medicare pays 50% of the usual and customary charge for psychiatry compared with 80% for the rest of Medicine.  A lot depends on contracting arrangements since a contract can limit a psychiatrist to billing only a 90862 code and the company can also decide that they disagree that services were provided and either deny payment or demand repayment of a significant amount of money based on a review of the documentation.

The business adaptation to this on the hospital and managed care side (if they own the hospital) is to hire case managers to get patients out of the hospital within 3 or 4 days.  Some of these systems have confabulated their own "guidelines" that allow them to do this that are totally independent of any professional standards.  So if you are a managed care business and you own the hospital you are winning at two levels - you already shift the risk to the providers and hospitals by the Medicare style DRG payment and you do it a second time by insisting that they go along with the business decision to discharge the patient from the hospital.

Strictly speaking, the examples of discounted fees are technically not capitation.  Discounted fees still allow for some elasticity within the system because there is still a fee paid per service event.  Capitated systems of care like behavioral health carve outs can be set up to pay a set fee for managing a specific population.  For example, a system of care is under contract for providing all services to a specific group of employees for a rate that is negotiated irrespective of actual patient visits.

The best way to understand capitated care is that it is designed to provide insurance companies a significant financial incentive for rationing care.  That incentive comes directly out of the total amount of money available for health care spending   Psychiatry, mental health, and addiction services were the easiest targets due to insitutionalized stigma, lack of a vocal constituency, and the political ineptness of psychiatrists.  It is anybody's guess about how much a managed care company can make for denying or rationing care but some estimates of the margins have been as high as 20-40%.

One thing is for certain.  Capitated care is not a comprehensive national health system.  It takes hundreds of billions of dollars out of the health care system and diverts it to CEOs and stockholders.  Contrary to the political opinion it does not contain the cost of health care inflation.  One of the readers of the Shrink Rap blog pointed out that in a national system of health care you might be able to get an expensive medication like aripiprazole but you would have to wait longer.  In our current system of capitated care if your managed care company decides - you will not be able to get it at all.

That is probably the best example of the difference.

George Dawson, MD, DFAPA

"The land of 10,000 90862s"

The title of this post is an inside joke for psychiatrists.  90862 is the billing code associated with a psychiatric visit that is commonly referred to as the "med check."  It is an example of what can happen to a profession when government bureaucrats and businesses run amok in determining what they think you do or what you should be doing when you provide patient care.

I first became aware of the political importance of this system in the 1990s, when I had to attend mandatory billing and coding seminars at my place of employment.   In those seminars I learned that the politicians and insurance companies were so desperate to use this arbitrary system that they told us we could go to federal prison for a long time if we submitted a "fraudulent" billing document.  The "fraudulent" document they were talking about was any bill connected to the document of a patient encounter that did not have enough bullet points to qualify for that level of billing.

That is an important concept so let me say it another way.  After every patient encounter, the physician needs to document a note about what happened and indicate a level of billing for that encounter.  When I first started training the note could be as little as one or two lines.  For example, at one point in my training I covered an entire surgical service with a team of doctors.  We could round on 25-30 patients with very complicated problems and write all of the documentation in about 2 hours.  The documentation was "Pain is well controlled, surgical site looks good, vital signs are stable."  We did not have to bother with any billing documents because a hospital billing specialist came by and confirmed that we had seen the patient and submitted the bill.

Somewhere  in the 1990s, a government initiative changed all of that.  The government decided that they needed a way to control the global budget for physician salaries and they decided to develop a system of codes for patient encounters that they assign relative values to and then multiply that by a certain number to set reimbursement for that code.  The entire system rests on the assumption that somebody can look at the description of a patient encounter as written in a note and audit the associated billing document.  It turns out that when this assumption was tested several years later - it was determined to be false, but that did not deter the federal government or the health insurance industry (see reference).

The 90862 is probably the most abused billing code in the psychiatric profession.  The interpretation of what constitutes an encounter that qualifies for this code varies from practice to practice and between organizations.  Patient experience varies from literally talking to a psychiatrist for 5 minutes with the goal of getting a prescription refill to a much richer encounter that includes a discussion of other current problems, additional medical diagnostic discussions and psychological advice.  In some cases, acute medical problems requiring emergency care have been identified in these sessions.  There is no doubt that a considerable amount of gaming occurs on the part of some clinicians and most insurance companies and government payers.

The only gaming possible by the clinician occurs at two levels.  The first is total time spent with the patient.  The folklore is that these are all 15 minute encounters.  Some clinicians insist on seeing patients in half hour blocks and others see 3 - 4 people per hour.  The second is total documentation.  You can literally do a few lines or you can write several paragraphs and stay after work just to do the documentation.  A lot depends on whether you think you will be audited and somebody will be making an arbitrary decision about whether your note qualifies for the charge that you assign to it.

There are myriad ways that a managed care company can game the system.  First of all, they can assign any level of reimbursement to any billing code that they want.  I quoted a New York Times article in another post as saying that a psychiatrist could see three patients for medications and get reimbursed at $50 per session, but the actual reimbursement can be less than half of that.  That same managed care company can also take any bills submitted for patient encounters with higher reimbursement levels and say: "we are only paying you for a 90862 no matter what you do."  If you happen to be working in an institutional setting, a managed care company can negotiate a per diem rate with your employer and not pay the 90862 billing at all.

Stated another way, a psychiatrist can see a patient with complex medical and psychiatric problems and get reimbursed at a level that might lead to them break even - to getting no reimbursement at all depending on the insurance company and contracting arrangements.  Within organizations the relative values for these codes are the basic way that physicians are manipulated to see more patients.  It is referred to as their "productivity" even though producing work for little or no reimbursement is not really productive activity.  The physician managers can demand that they see more and more patients to compensate for the poor or nonexistent rate of reimbursement by managed care companies.

Another artifact of this system is that procedures like surgeries, endoscopies, and angioplasties are reimbursed at a higher rates than a doctor talking with you and discussing the diagnosis and treatment.  That lead to a movement to reimburse the cognitive or nonproceduralist specialties at higher rates.  But given the amount of government payer and insurance company leverage it is impossible to make that happen.

Is there a solution to this problem that in effect makes physicians work impossibly harder to earn a professional salary?  The solution is as easy as considering how I pay my attorney, accountant, mechanic, plumber, electrician, and chimney sweep.  I pay them all by the hour.  In some cases there is an agreed fixed amount, but it is generally many times more than what I would get reimbursed for the lowest 90862 reimbursement.

Getting back to the title of this post, when I looked at the lowest current reimbursement for a 90862 and calculated how many of those bills would need to be submitted to make a professional wage, it came out to about 10,000 patient encounters per year.  Working 50 weeks per year that would mean seeing 40 established patients per day.  The only clinic where I have ever observed those numbers had three nurses rooming the patients and doing all of the documentation before they were briefly seen by a psychiatrist.

As I contemplated all of this I had the thought: "I am living in the 'Land of 10,000 lakes' - maybe we should just change that to the 'Land of 10,000 90862s.' "

George Dawson, MD

King MS, Lipsky MS, Sharp L. Expert agreement in Current Procedural Terminology evaluation and management coding. Arch Intern Med. 2002 Feb 11;162(3):316-20.

90862 Redux? An Update.

Knowledge Workers

Imagine working in an environment that is optimized for physicians. There are no obstacles to providing care for your patients. You receive adequate decision-support. Your work is valued and you are part of the team that gets you immediate support if you encounter problems outside of your expertise.  In the optimized environment you feel that you are working at a level consistent with your training and current capacity. That environment allows you to focus on your diagnosis and treatment of the patient with minimal time needed for documentation and coding and no time wasted responding to insurance companies and pharmacy benefit managers.

As I think about the problems we all encounter in our work environment on a daily basis I had the recent  thought that this is really a management problem.  Most of the management that physicians encounter is strictly focused on their so-called productivity.  That in turn is based on an RVU system that really has no research evidence and is clearly a political instrument used to adjust the global budget for physicians.   Current state-of-the-art management for physicians generally involves a manager telling them that they need to generate more RVUs every year.  Managers will also generally design benefits and salary packages that are competitive in order to reduce physician loss, but this is always in the larger context of increasing RVU productivity.   Internet searches on the subject of physician management generally bring back diverse topics like "problem doctors", “managing physician performance”, "disruptive behavior", “anger management”, and “alcoholism”, but nothing about a management plan that would be mutually beneficial for physicians, their patients and the businesses they work for.

In my research about employee management I encountered the work of the late Peter Drucker in the Harvard Business Review.  Drucker was widely recognized as a management guru with insights into how to manage personnel and information going into the 21st century. One of his key concepts was that of the "knowledge worker".   He discussed the evolution of managing workers from a time where the manager had typically worked all the jobs he was supervising and work output was more typically measured in quantity rather than quality. By contrast knowledge workers will generally know much more about their work than the manager.   Work quality is more characteristic than quantity.   Knowledge workers typically are the major asset of the corporation and attracting and retaining them is a corporate goal.   Physicians are clearly knowledge workers but they are currently being managed like production workers.

The mistakes made in managing physicians in general and psychiatrists in particular are too numerous to outline in this essay. The current payers and companies managing physicians have erected barriers to their physician-knowledge workers rather than optimizing their work environments. The end result has been an environment that actually restricts access to the most highly trained knowledge workers.   It does not take an expert in management to realize that this is not an efficient way to run a knowledge based business.   Would you restrict access to engineers and architects who are working on projects that could be best accomplished by those disciplines?   Would you replace the engineers and architects by general contractors or laborers?   I see this dynamic occurring constantly across clinical settings in Minnesota and it applies to any model that reduces psychiatric care to prescribing a limited formulary of drugs.

I think that there are basically three solutions.   The first is a partial but necessary step and that is telling everyone we know that we have been mismanaged and this is a real source of the so-called shortage of psychiatrists.  The second approach is addressing the issue of RVU based pay directly.   I will address the commonly used 90862 or medication management code.  As far as I can tell people completing this code generally fill out a limited template of information, ask about medication side effects, and record the patient's description of where they are in the longitudinal course of their symptoms and side effects.  Many managed care companies will ONLY reimburse psychiatrists for this stripped down intervention.    I would suggest that adding an AIMS evaluation or screen for metabolic syndrome, an in-depth probe into their current nonpsychiatric medications and how they interact with their current therapy, adding a brief psychotherapeutic intervention, case management discussions with other providers or family, and certainly any new acute medical or psychiatric problems addressed are all à la cart items that need to be assigned RVU status and added to the basic code.   Although there are more, these are just a few areas where psychiatrists add quality care to the prescription of medicines and managed care companies do not.  The final solution looks ahead to the future and the psychiatrist role in the medical home approach to integrated care. We currently have to decide where we fit in that model and make sure that we don't end up getting paid on an RVU basis while we are providing hours of consultation to primary care physicians every day.

Overall these are political problems at the legislative, bureaucratic and business levels.  It should be apparent to anyone in practice that when political pressure succeeds in dumbing down your profession – it necessarily impacts adversely on your work environment, compensation, and most importantly your ability to deliver quality care.