In the past week, I’ve noticed two different reports of instances where an individual has defrauded Medicare for millions of dollars through billing for Physical Therapy Services.
This guy in Trenton, NJ.
And this guy in Detroit.
Now, according to reports, the prevalence of this crime is growing. But what does Medicare know about opporunities for fraud within its system?
An Example: In May 2006, a report was issued by the The Department of Health and Human Services, Office of Inspector General regarding Medicare Billing for Physical Therapy by Physicians and the “incident to” rule.
Here are some excerpts from that report:
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“Physical therapy billed directly by physicians represented approximately $158 million out of a total of approximately $528 million for physical therapy claims billed to the Part B carriers and allowed by Medicare in the first 6 months of 2002. Medicare allows physicians to submit claims for physical therapy that they do not perform personally, as long as the services are an “integral, although incidental, part of the physicians’ personal professional services in the course of diagnosis or treatment of an injury or illness.”2 The total allowed for physicians’ physical therapy claims has increased from $353 million in 2002 to $509 million in 2004, and the number of physicians who billed for more than $1 million in physical therapy has more than doubled, from 15 to 38 in the same 2-year period.”
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“Under the “incident to” rule, licensed physical therapists need not perform the services, and Medicare currently does not require licensure or certification of staff that perform “incident to” physical therapy. However, in all other settings…Medicare requires that only licensed physical therapists can render physical therapy.”
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“78 percent of physical therapy rendered in physicians’ offices did not represent true physical therapy”
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“Ninety-one percent of physical therapy billed by physicians and allowed by Medicare during the first 6 months of 2002 did not meet program requirements, resulting in $136 million in improper payments.”
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“Because of inadequate documentation, reviewers had difficulty assessing the quality of the therapy services.”
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“One beneficiary in our sample received 15 months of physical therapy for lumbago and osteoarthritis, for which Medicare allowed $39,126. The beneficiary’s physician did not document a plan of care and did not establish medical necessity for the services. The physician, a general practitioner, billed physical therapy to Medicare for 672 patients in 2002, an average of 27 patients per day. In 2002, Medicare allowed $752,531 for this physician’s physical therapy claims.”
WOW!
And, the report’s conclusions and recommendations:
“…we have decided not to issue a report that would include formal recommendations to CMS. Instead, we are transmitting this summary of our review in the event that the information will be useful CMS’ s review of the physical therapy benefit and future considerations of the “incident to” rule.”
Translation: They did NOTHING!
If Medicare doesn’t act to reduce the opportunity for fraudulent billing, how can they ever expect not to have fraudulent billing. Granted, the instances in the news were not physicians, but the point of bringing up this report was to highlight the number and type of loopholes in this system that go unchecked. If you want to attract a mouse, put out some cheese!
I am glad they caught these criminals, however.
Labels: current press, health policy, physical therapy