PROPOSED RULES
SOCIAL AND HEALTH SERVICES
(Health and Recovery Services Administration)
Original Notice.
Preproposal statement of inquiry was filed as WSR 05-17-136.
Title of Rule and Other Identifying Information: Amending WAC 388-550-1100 Hospital coverage, 388-550-2600 Inpatient psychiatric services, and 388-550-2650 Base community psychiatric hospitalization payment method for Medicaid and non-Medicaid clients.
Hearing Location(s): Blake Office Park East, Rose Room, 4500 10th Avenue S.E., Lacey, WA 98503 (one block north of the intersection of Pacific Avenue S.E. and Alhadeff Lane. A map or directions are available at http://www1.dshs.wa.gov/msa/rpau/docket.html or by calling (360) 664-6097), on June 5, 2007, at 10:00 a.m.
Date of Intended Adoption: Not earlier than June 6, 2007.
Submit Written Comments to: DSHS Rules Coordinator, P.O. Box 45850, Olympia, WA 98504, delivery 4500 10th Avenue S.E., Lacey, WA 98503, e-mail schilse@dshs.wa.gov, fax (360) 664-6185, by 5:00 p.m. on June 5, 2007.
Assistance for Persons with Disabilities: Contact Stephanie Schiller by June 1, 2007, TTY (360) 664-6178 or (360) 664-6097 or by e-mail at schilse@dshs.wa.gov.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rules update and clarify information regarding the department's inpatient psychiatric services coverage (including adding applicable definitions), payment policy, and general policy for hospital care. The proposed rules also clarify how the department pays a hospital for covered dental-related services that are provided in the hospital's operating room. Also, effective for dates of admission on and after July 1, 2007, the base community psychiatric hospitalization payment method for Medicaid and state children's health insurance program (SCHIP) clients and non-Medicaid and non-SCHIP clients is no longer used. (A "non-Medicaid or non-SCHIP client" is defined as a client eligible under the general assistance-unemployable (GA-U) program, the Alcoholism and Drug Addiction Treatment and Support Act (ADATSA), the psychiatric indigent inpatient (PII) program, or other state-administered program, as determined by the department.)
Reasons Supporting Proposal: See above.
Statutory Authority for Adoption: RCW 74.08.090 and 74.09.500.
Statute Being Implemented: RCW 74.08.090 and 74.09.500.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of social and health services, governmental.
Name of Agency Personnel Responsible for Drafting: Kathy Sayre, P.O. Box 45504, Olympia, WA 98504-5504, (360) 725-1342; Implementation and Enforcement: Larry Linn, P.O. Box 45502, Olympia, WA 98504-5502, (360) 725-1856.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The department has determined that the proposed rule will not create more than minor costs for affected small businesses.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Larry Linn, P.O. Box 45502, Olympia, WA 98504-5502, phone (360) 725-1856, fax (360) 753-9152, e-mail linnld@dshs.wa.gov.
April 26, 2007
Stephanie E. Schiller
Rules Coordinator
3861.1 (a) Pays for the admission of an eligible medical
assistance client to a hospital only when the client's
attending physician orders admission and when the admission
and treatment provided ((meet the requirements of)):
(i) Are covered according to WAC 388-501-0050, 388-501-0060 and 388-501-0065;
(ii) Are medically necessary as defined in WAC 388-500-0005;
(iii) Are determined according to WAC 388-501-0165 when prior authorization is required;
(iv) Are authorized when required under this chapter; and
(v) Meet applicable state and federal requirements.
(b) For ((nonemergent)) hospital admissions, defines
"attending physician" ((means)) as the client's primary care
provider, or the primary provider of care to the client at the
time of ((hospitalization. For emergent admissions,
"attending physician" means the staff member who has hospital
admitting privileges and evaluates the client's medical
condition upon the client's arrival at the hospital))
admission.
(2) Medical record documentation of hospital services
must meet the requirements in WAC 388-502-0020(((1), Records
and reports -- Medical record system)).
(3) ((In areas where the choice of hospitals is limited
by managed care or selective contracting, the department is
not responsible for payment under fee-for-service for hospital
care and/or services:
(a) Provided to clients enrolled in an MAA managed care plan, unless the services are excluded from the health carrier's capitation contract with MAA and are covered under the medical assistance program; or)) The department:
(a) Pays for a hospital covered service provided to an eligible medical assistance client enrolled in a department managed care organization (MCO) plan, under the fee-for-service program if the service is excluded from the MCO's capitation contract with the department and meets prior authorization requirements. (See WAC 388-550-2600 for inpatient psychiatric services.)
(b) ((Received by a Medicaid-eligible)) Does not pay for
nonemergency services provided to a medical assistance client
from a nonparticipating hospital in a selective contracting
area (SCA) unless exclusions in WAC 388-550-4600 and
388-550-4700 apply. The department's selective contracting
program and selective contracting payment limitations end for
hospital claims with dates of admission before July 1, 2007.
(4) The department ((provides chemical-dependent pregnant
Medicaid-eligible clients)) pays up to twenty-six days of
inpatient hospital care for hospital-based detoxification,
medical stabilization, and drug treatment ((when:
(a) An alcoholism, drug addiction and treatment support act ADATSA assessment center verifies the need for the inpatient care; and
(b) The hospital chemical dependency treatment unit is certified by the division of alcohol and substance abuse)) for chemical dependent pregnant clients eligible under the chemical-using pregnant (CUP) women program.
See ((WAC 388-550-6250 for outpatient hospital services
for chemical-dependent pregnant Medicaid clients)) WAC 388-533-0701 through 0730.
(5) The department ((covers)) pays for inpatient hospital
detoxification of acute alcohol or other drug intoxication
((only in a hospital having a detoxification provider
agreement with MAA to perform these services)) when the
services are provided to an eligible client:
(a) In a detoxification unit in a hospital that has a detoxification provider agreement with the department to perform these services and the services are approved by the division of alcohol and substance abuse (DASA); or
(b) In an acute hospital and all of the following criteria are met:
(i) The hospital does not have a detoxification specific provider agreement with DASA;
(ii) The hospital provides the care in a medical unit;
(iii) Non-hospital based detoxification is not medically appropriate for the client;
(iv) The client does not require medically necessary inpatient psychiatric care and it is determined that an approval from a regional support network (RSN) or a mental health division (MHD) designee as an inpatient stay;
(v) The client's stay qualifies as an inpatient stay;
(vi) The client is not participating in the department's chemical-using pregnant (CUP) women program; and
(vii) The client's principal diagnosis meets the department's medical inpatient detoxification criteria listed in the department's published billing instructions.
(6) The department covers medically necessary
dental-related services provided to an eligible client((s)) in
a ((hospital setting for the care or treatment of teeth, jaws,
or structures directly supporting the teeth:
(a) If the procedure requires hospitalization; and
(b) A physician or dentist provides or directly supervises such services)) hospital-based dental clinic when the services:
(a) Are provided in accordance with chapter 388-535 WAC; and
(b) Are billed on the American Dental Association (ADA) or health care financing administration (HCFA) claim form.
(7) The department pays a hospital((s)) for covered
dental-related services ((provided in special care units when
the provisions in WAC 388-550-2900(13) are met)), including
oral and maxillofacial surgeries, that are provided in the
hospital's operating room, when:
(a) The covered dental-related services are medically necessary and provided in accordance with chapter 388-535 WAC;
(b) The covered dental-related services are billed on a UB claim form; and
(c) At least on of the following is true:
(i) The dental-related service(s) is provided to an eligible medical assistance client on an emergency basis;
(ii) The client is eligible under the division of developmental disability program;
(iii) The client is age eight or younger; or
(iv) The dental service is prior authorized by the department.
(8) ((All services are subject to review and approval as
stated in WAC 388-501-0050.
(9))) For inpatient voluntary or involuntary psychiatric
admissions, see WAC 388-550-2600 ((and chapter 246-318 WAC)).
[Statutory Authority: RCW 74.08.090 and 42 U.S.C. 1395x(v), 42 C.F.R. 447.271, .11303, and .2652. 01-16-142, § 388-550-1100, filed 7/31/01, effective 8/31/01. Statutory Authority: RCW 74.08.090. 01-02-075, § 388-550-1100, filed 12/29/00, effective 1/29/01. Statutory Authority: RCW 74.08.090, 74.09.730, 74.04.050, 70.01.010, 74.09.200, [74.09.]500, [74.09.]530 and 43.20B.020. 98-01-124, § 388-550-1100, filed 12/18/97, effective 1/18/98.]
(2) The following definitions and abbreviations and those found in WAC 388-550-0005 and 388-550-1050 apply to this section (where there is any discrepancy, this section prevails):
(a) "Authorization number" refers to a number that is required on a claim in order for a provider to be paid for providing psychiatric inpatient services to a medical assistance client. An authorization number:
(i) Is assigned when the certification process and administrative prior authorization process has occurred;
(ii) Identifies a specific request for the provision of psychiatric inpatient services to a medical assistance client;
(iii) Verifies when prior or retrospective authorization has occurred;
(iv) Will not be rescinded once assigned; and
(v) Does not guarantee payment.
(b) "Certification" means a clinical determination by a MHD designee that a client's need for a voluntary or involuntary inpatient psychiatric admission, length of stay extension, or transfer has been reviewed and, based on the information provided, meets the requirements for medical necessity for inpatient psychiatric care. The certification process occurs concurrently with the administrative prior authorization process.
(c) "I.D." See "Institution for Mental Diseases."
(d) "Institution for Mental Diseases (I.D.)" means a hospital, nursing facility, or other institution of more than sixteen beds that is primarily engaged in providing diagnosis, treatment, or care of persons with mental diseases, including medical attention, nursing care, and related services. The MHD designates whether a facility meets the definition for an I.D.
(e) "Involuntary admission" refer to chapters 71.05 and 71.34 RCW.
(f) "Mental health division (MHD)" is the unit within the department of social and health services (DSHS) authorized to contract for and monitor delivery of mental health programs. MHD is also known as the state mental health authority.
(g) "Mental health division designee" or "MHD designee" means a professional contact person authorized by MHD, who operates under the direction of a regional support network (RSN) or a prepaid inpatient health plan (PIHP).
(h) "PIHP" see "Prepaid inpatient health plan."
(i) "Prepaid inpatient health plan (PIHP)" see WAC 388-865-0300.
(j) "Prior authorization" means an administrative process by which hospital provides must obtain a MHD designee's certification for a client's inpatient psychiatric admission, length of stay extension, or transfer. The administrative prior authorization process occurs concurrently with the certification process.
(k) "Regional support network (RSN)" see WAC 388-865-0200.
(l) "Retrospective authorization" means a process by which hospital providers and hospital unit providers must obtain a MHD designee's certification after services have been initiated for a medical assistance client. This process is allowed only when circumstances beyond the control of the hospital or hospital unit provider prevented a prior authorization request.
(m) "RSN" see "regional support network."
(n) "Voluntary admission" refer to chapters 71.05 and 71.34 RCW.
(3) The following department of health (DOH)-licensed hospitals and hospital units are eligible to be paid for providing inpatient psychiatric services to eligible medical assistance clients, subject to the limitations listed:
(a) Medicare-certified distinct part psychiatric units;
(b) State-designated pediatric psychiatric units;
(c) Hospitals that provide active psychiatric treatment outside of a medicare-certified or state-designated psychiatric unit, under the supervision of a physician; and
(d) Free-standing psychiatric hospitals approved as an institution for mental diseases (I.D.).
(4) To be paid for a voluntary inpatient psychiatric admission:
(a) The hospital provider or hospital unit provider must meet the applicable general conditions of payment criteria in WAC 388-502-0100; and
(b) The voluntary inpatient psychiatric admission must meet the following:
(i) For a client eligible for medical assistance, the admission to voluntary inpatient psychiatric care must:
(A) Be medically necessary as defined in WAC 388-500-0005;
(B) Be ordered by an agent of the hospital who has the clinical or administrative authority to approve an admission;
(C) Be prior authorized and meet certification and prior authorization requirements as defined in subsection (2) of this section. See subsection (7) of this section for a voluntary inpatient psychiatric admission that was not prior authorized and requires retrospective authorization by the client's MHD designee; and
(D) Be verified by receipt of a certification form dated and signed by an MHD designee (see subsection (2) of this section). The form must document at least the following:
(I) Ambulatory care resources available in the community do not meet the treatment needs of the client;
(II) Proper treatment of the client's psychiatric condition requires services on an inpatient basis under the direction of a physician;
(III) The inpatient services can reasonably be expected to improve the client's level of functioning or prevent further regression of functioning;
(IV) The client has been diagnosed as having an emotional or behavioral disorder, or both, as defined in the current edition of the Diagnostic and Statistical Manual of the American Psychiatric Association; and
(V) For admission to long term inpatient psychiatric care, the client has been diagnosed with a severe psychiatric disorder that warrants extended care in the most intensive, restrictive setting.
(ii) For a client eligible for both medicare and a medical assistance program, the department pays secondary to medicare.
(iii) For a client eligible for both medicare and a medical assistance program and who has not exhausted medicare lifetime benefits, the hospital provider or hospital unit provider must notify the MHD designee of the client's admission if the dual eligibility status is known. The admission:
(A) Does not require prior authorization by a MHD designee; and
(B) Must be in accordance with medicare standards.
(iv) For a client eligible for both medicare and a medical assistance program who has exhausted medicare lifetime benefits, the admission must have prior authorization by a MHD designee.
(v) When a liable third party is identified (other than medicare) for a client eligible for a medical assistance program, the hospital provider or hospital unit provider must obtain a MHD designee's authorization for the admission.
(5) To be paid for an involuntary inpatient psychiatric admission:
(a) The involuntary inpatient psychiatric admission must be in accordance with the admission criteria specified in chapters 71.05 and 71.34 RCW; and
(b) The hospital provider or hospital unit provider:
(i) Must be certified by the MHD in accordance with chapter 388-865 WAC;
(ii) Must meet the applicable general conditions of payment criteria in WAC 388-502-0100; and
(iii) When submitting a claim, must include a completed and signed copy of Involuntary Treatment Act Patient Claim Information form (DSHS 13-628).
(6) To be paid for providing continued inpatient psychiatric services to a medical assistance client who has already been admitted, the hospital provider or hospital unit provider must request from a MHD designee within the time frames specified, certification and authorization as defined in subsection (2) of this section for any of the following circumstances:
(a) If the client converts from involuntary (legal) status to voluntary status, or from voluntary to involuntary (legal) status as described in chapter 71.05 or 71.34 RCW, the hospital provider or hospital unit provider must notify the MHD designee prior to the change of status;
(b) If an application is made for determination of a patient's medical assistance eligibility, the request for certification and prior authorization must be submitted by the close of the next business day;
(c) If there is a change in the client's principal ICD9-CM diagnosis to a mental disorder, the request for certification and prior authorization must be submitted within two business days of the change;
(d) If there is a request for a length of stay extension for the client, the request for certification and prior authorization must be submitted prior to the end of the initial allowed days of services (see subsections (10) and (11) of this section for payment methodology and payment limitations); and
(e) If the client is to be transferred from one community hospital to another community hospital for continued inpatient psychiatric care, the request for certification and prior authorization must be submitted prior to the transfer.
(7) A MHD designee has the authority to approve or deny a request for retrospective certification for a client's voluntary inpatient psychiatric admission, length of stay extension, or transfer that was not prior authorized. The MHD designee responds to the hospital unit within three working days of the request, in accordance with the requirements of this section, and bases an approval or denial:
(a) On the client's condition at the time of admission to the hospital or hospital unit if the request is for retrospective authorization of admission; or
(b) On the client's condition at the time of the end of the allowable day of service in that hospital or hospital unit if the request is for retrospective authorization for a length of stay extension or for a transfer.
(8) To be paid for a psychiatric inpatient admission of an eligible medical assistance client, the hospital provider or hospital unit provider must submit on the claim form the authorization (see subsection (2)(a) for definition of prior authorization and retrospective authorization).
(9) The department uses the payment methods described in WAC 388-550-2650 through 388-550-5600, as appropriate, to pay a hospital and hospital unit for providing psychiatric services to medical assistance clients, unless otherwise specified in this section.
(10) Covered days for a voluntary psychiatric admission are determined by a MHD designee utilizing MHD approved utilization review criteria.
(11) The number of paid days authorized for an involuntary psychiatric admission is limited to twenty days. If the length of stay exceeds twenty days, the hospital provider or hospital unit provider must request a length of stay extension prior to the twentieth day of service.
(12) The department pays the administrative day rate for any authorized days of voluntary inpatient psychiatric stay that meet the administrative day definition in WAC 388-550-1050.
(13) In order for a MHD designee to implement and participate in a medical assistance client's plan of care, a hospital provider or hospital unit provider must provide any clinical and cost of care information to the MHD designee upon request. This requirement applies to all medical assistance clients admitted for:
(a) Voluntary inpatient psychiatric services; and
(b) Involuntary inpatient psychiatric services, regardless of payment source.
(14) If the number of days billed exceeds the number of days authorized by the MHD designee for any claims paid, the department will recover any unauthorized days paid.
[Statutory Authority: RCW 74.08.090, 74.09.730, 74.04.050, 70.01.010, 74.09.200, [74.09.]500, [74.09.]530 and 43.20B.020. 98-01-124, § 388-550-2600, filed 12/18/97, effective 1/18/98.]
(a) The medicaid base community psychiatric hospital payment rate is a minimum per diem for claims for psychiatric services provided to medicaid and SCHIP covered patients, paid to hospitals that accept commitments under the involuntary treatment act (ITA).
(b) The non-medicaid base community psychiatric hospital payment rate is a minimum allowable per diem for claims for psychiatric services provided to indigent patients paid to hospitals that accept commitments under the ITA.
(2) For the purposes of this section, "allowable" means the calculated allowed amount for payment based on the payment method before adjustments, deductions, or add-ons.
(3) To be eligible for payment under the base community psychiatric hospitalization payment method:
(a) A client's inpatient psychiatric voluntary hospitalization must:
(i) Be medically necessary as defined in WAC 388-500-0005. In addition, the department considers medical necessity to be met when:
(A) Ambulatory care resources available in the community do not meet the treatment needs of the client;
(B) Proper treatment of the client's psychiatric condition requires services on an inpatient basis under the direction of a physician;
(C) The inpatient services can be reasonably expected to improve the client's condition or prevent further regression so that the services will no longer be needed; and
(D) The client, at the time of admission, is diagnosed as having an emotional/behavioral disturbance as a result of a mental disorder as defined in the current published Diagnostic and Statistical Manual of the American Psychiatric Association. The department does not consider detoxification to be psychiatric in nature.
(ii) Be approved by the professional in charge of the hospital or hospital unit.
(iii) Be authorized by the appropriate mental health division (MHD) designee prior to admission for covered diagnoses.
(iv) Meet the criteria in WAC 388-550-2600.
(b) A client's inpatient psychiatric involuntary hospitalization must:
(i) Be in accordance with the admission criteria in chapters 71.05 and 71.34 RCW.
(ii) Be certified by a MHD designee.
(iii) Be approved by the professional in charge of the hospital or hospital unit.
(iv) Be prior authorized by the regional support network (RSN) or its designee.
(v) Meet the criteria in WAC 388-550-2600.
(4) The provider requesting payment must complete the appropriate sections of the Involuntary Treatment Act patient claim information (form DSHS 13-628) in triplicate and route both the form and each claim form submitted for payment, to the county involuntary treatment office.
(5) Payment for all claims is based on covered days within a client's approved length of stay (LOS), subject to client eligibility and department-covered services.
(6) The medicaid base community psychiatric hospitalization payment rate applies only to a medicaid or SCHIP client admitted to a non-state-owned free-standing psychiatric hospital located in Washington state.
(7) The non-medicaid base community psychiatric hospitalization payment rate applies only to a non-medicaid or SCHIP client admitted to a hospital:
(a) Designated by the department as an ITA-certified hospital; or
(b) That has a department-certified ITA bed that was used to provide ITA services at the time of the non-medicaid or non-SCHIP admission.
(8) For inpatient hospital psychiatric services provided to eligible clients for dates of admission on and after July 1, 2005, through June 30, 2007, the department pays:
(a) A hospital's department of health (DOH)-certified distinct psychiatric unit as follows:
(i) For medicaid and SCHIP clients, inpatient hospital psychiatric services are paid using the department-specific non-diagnosis related group (DRG) payment method.
(ii) For non-medicaid and non-SCHIP clients, the allowable for inpatient hospital psychiatric services is the greater of:
(A) The state-((only))administered program DRG allowable
(including the high cost outlier allowable, if applicable), or
the department-specified non-DRG payment method if no relative
weight exists for the DRG in the department's payment system;
or
(B) The non-medicaid base community psychiatric hospitalization payment rate multiplied by the covered days.
(b) A hospital without a DOH-certified distinct psychiatric unit as follows:
(i) For medicaid and SCHIP clients, inpatient hospital psychiatric services are paid using:
(A) The DRG payment method; or
(B) The department-specified non-DRG payment method if no relative weight exists for the DRG in the department's payment system.
(ii) For non-medicaid and SCHIP clients, the allowable for inpatient hospital psychiatric services is the greater of:
(A) The state-((only))administered program DRG allowable
(including the high cost outlier allowable, if applicable), or
the department-specified non-DRG payment method if no relative
weight exists for the DRG in the department's payment system;
or
(B) The non-medicaid base community psychiatric hospitalization payment rate multiplied by the covered days.
(c) A non-state-owned free-standing psychiatric hospital as follows:
(i) For medicaid and SCHIP clients, inpatient hospital psychiatric services are paid using as the allowable, the greater of:
(A) The ratio of costs-to-charges (RCC) allowable; or
(B) The medicaid base community psychiatric hospitalization payment rate multiplied by covered days.
(ii) For non-medicaid and non-SCHIP clients, inpatient
hospital psychiatric services are paid the same as for
medicaid and SCHIP clients, except the base community
inpatient psychiatric hospital payment rate is the
non-medicaid rate, and the RCC allowable is the
state-((only))administered program RCC allowable.
(d) A hospital, or a distinct psychiatric unit of a hospital, that is participating in the certified public expenditure (CPE) payment program, as follows:
(i) For medicaid and SCHIP clients, inpatient hospital psychiatric services are paid using the methods identified in WAC 388-550-4650.
(ii) For non-medicaid and non-SCHIP clients, inpatient hospital psychiatric services are paid using the methods identified in WAC 388-550-4650 in conjunction with the non-medicaid base community psychiatric hospitalization payment rate multiplied by covered days.
(e) A hospital, or a distinct psychiatric unit of a hospital, that is participating in the critical access hospital (CAH) program, as follows:
(i) For medicaid and SCHIP clients, inpatient hospital psychiatric services are paid using the department-specified non-DRG payment method.
(ii) For non-medicaid non-SCHIP clients, inpatient hospital psychiatric services are paid using the department-specified non-DRG payment method.
[Statutory Authority: RCW 74.08.090, 74.09.500, and 2005 c 518, § 204, Part II. 07-06-043, § 388-550-2650, filed 3/1/07, effective 4/1/07.]