FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions

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FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions
FY 2022 Final Rule
A discussion on Rates and Quality

Dr. Sherita Castille
Clinical Pharmacist Partner
October 28, 2021
FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions
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Objectives

 Overview of CMS FY 2022 Finale Rule

 Review the hospice wage index & payment updates

 Review the aggregated cap amount for FY 2022

 Review revised Labor Share rate

 Discuss the finalized text changes to the addendum
 implemented on October 1, 2020

 Overview of Quality Reporting Changes
FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions
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                                Please Note

• Sherita Castille has no financial conflicts to
  disclose
• The views, information, and guidance in this
  webinar are those of the presenter
• The information may be incomplete and HPS
  does not make any guarantees or warranties
  concerning the information contained in this
  resource
• If expert assistance is required, please seek the
  services of CMS
FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions
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Seeing the Big Picture
     HOSPICE
     • Providing patient centered, cost-effective care utilizing an
       interdisciplinarian team approach

     • Balancing hospice services versus palliative services

     CMS

     • Providing consistent regulatory guidance for cost
       containment
     • Increase coverage transparency and quality of hospice
       providers
     HPS
     • Pain and symptom management consultations 24/7
     • General drug information guidance: availability, costs,
       cost-effective alternatives, adverse effects, etc.
     • Educational Resources: Pathways to Success
FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions
2022 Updates
FY 2022 Final Rule A discussion on Rates and Quality - Dr. Sherita Castille Clinical Pharmacist Partner - Hospice Pharmacy Solutions
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                                            Summary at a Glance
On August 4, 2021, the Federal Register published the Final Rule on Hospice
Wage Index, Payment Rates and Aggregate Cap Amount for Fiscal Year 2022.
These Regulations are effective on October 1, 2021
     • Rate increase of 2% for FY2022, effective October 1, 2021 – Economic impact of this rule is
       estimated to be 480 million in increased payment to Hospice for FY 2022

     • Updates to Labor shares of hospice payment rates and the Hospice Quality Reporting Program

     •    Clarity on text changes to the election statement addendum that was implemented on October 1,
         2020

     • The rule may permanent blanket waivers for Hospice agencies and were implemented during the
       COVID-19 public health emergency providing revisions to Hospice conditions of participation (CoPs)

     • Updated CAHPS to Consumer Assessment of Healthcare Providers and Systems (CAHPS) Star
       ratings and addressed further development of Hospice Outcome and Patient Evaluation (HOPE)
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                                           FY 2022 Hospice Payment Rates
                                           With Quality Reporting
Code   Description       FY 2021         SIA Budget      Wage Index        Labor Share     FY 2022    FY 2022
                       Payment rates      Neutrality   Standardization   Standardization   Hospice    Payment
                        *(Includes         Factor          Factor            Factor        Payment     Rates
                          rebase)                                                           Update

651      Routine          $199.25         X 1.0003        X 1.0001          X 0.9995       X 1.02     $ 203.40
       Home Care
       (Days 1-60)
651     Routine           $157.49         X 1.0005        X1.0009           X 0.9992       X 1.02     $160.74
       Home Care
       (Days 61+)
652     Continuous        $1,432.61                       X 1.0004          X 1.0006       X 1.02     $1,462.52
        Home Care      ($59.69/ hourly                                                                 ($60.94/
       Full Rate 24         rate)                                                                    hourly rate)
       hours of care
655      Inpatient        $461.09                         X 1.014           X 1.0059       X 1.02     $473.75
       Respite Care

656       General        $1,045.66                        X 1.0019          X 0.9997       X 1.02    $1,068.28
         Inpatient
           Care
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                                           FY 2022 Hospice Payment Rates
                                           Without Quality Reporting
Code   Description       FY 2021         SIA Budget      Wage Index        Labor Share     FY 2022    FY 2022
                       Payment rates      Neutrality   Standardization   Standardization   Hospice    Payment
                        *(Includes         Factor          Factor            Factor        Payment     Rates
                          rebase)                                                           Update

651      Routine          $199.25         X 1.0003        X 1.0001          X 0.9995       X 1.00     $ 199.41
       Home Care
       (Days 1-60)
651     Routine           $157.49         X 1.0005        X1.0009           X 0.9992       X 1.00     $157.58
       Home Care
       (Days 61+)
652     Continuous        $1,432.61                       X 1.0004          X 1.0006       X 1.00     $1,433.84
        Home Care      ($59.69/ hourly                                                                 ($59.97/
       Full Rate 24         rate)                                                                    hourly rate)
       hours of care
655      Inpatient        $461.09                         X 1.014           X 1.0059       X 1.00     $464.46
       Respite Care

656       General        $1,045.66                        X 1.0019          X 0.9997       X 1.00    $1,047.33
         Inpatient
           Care
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                           Hospice Cap for 2022

• The aggregate hospice cap amount for FY 2022 is $31,297.61
   • This amount is set by the Centers for Medicare and Medicaid
     services each year. It is the maximum amount that a hospice will
     be reimbursed for Medicare hospice service.
   • The GIP cap limits the number of days of inpatient care for which
     Medicare will pay to 20 percent of a hospice's total Medicare
     patient care days
   • If your overall per patient amount exceeds the annual cap amount
     the difference must be repaid.
   • If you have a significant number of patients who have long term
     stays seek the guidance of CMS.
Top 20 Principal Hospice                10

Diagnoses FY2019

       Hospice Diagnosis Trends
        G30.9 - Alzheimer's disease,
         unspecified
        G31.1 – Senile degeneration
         of brain not elsewhere
         classified
        J44.9 – chronic obstructive
         pulmonary disease,
         unspecified
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Hospice Length of Stay Trends
Fiscal Years 2016 to 2019
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                                           FY 2022 Hospice Payment Rates
                                           With Quality Reporting
Code   Description       FY 2021         SIA Budget      Wage Index        Labor Share     FY 2022    FY 2022
                       Payment rates      Neutrality   Standardization   Standardization   Hospice    Payment
                        *(Includes         Factor          Factor            Factor        Payment     Rates
                          rebase)                                                           Update

651      Routine          $199.25         X 1.0003        X 1.0001          X 0.9995       X 1.02     $ 203.40
       Home Care
       (Days 1-60)
651     Routine           $157.49         X 1.0005        X1.0009           X 0.9992       X 1.02     $160.74
       Home Care
       (Days 61+)
652     Continuous        $1,432.61                       X 1.0004          X 1.0006       X 1.02     $1,462.52
        Home Care      ($59.69/ hourly                                                                 ($60.94/
       Full Rate 24         rate)                                                                    hourly rate)
       hours of care
655      Inpatient        $461.09                         X 1.014           X 1.0059       X 1.02     $473.75
       Respite Care

656       General        $1,045.66                        X 1.0019          X 0.9997       X 1.02    $1,068.28
         Inpatient
           Care
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                                        Labor Share Updates for 2022
History: Did you know the last rebase for labor shares was in 1984? At the
time the benefit was calculated using the wage/non-wage proportions CMS
implemented in home health agency and skilled nursing facility cost.

        • Continuous Home Care (CHC) and Routine Home Care (RHC) were 68.71%

        • Inpatient Respite Care (IRC) and General Inpatient Care (GIP) were 54.13%

Goal: Rebase and revise LS cost based on the different levels of care. To
achieve this CMS evaluates 5 components that drive cost
        • Direct Salaries and Contract          • Overhead salaries
          cost
                                                • Overhead benefit cost
        • Direct patient benefit cost

        • Other patient care salaries
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Labor Share Updates for 2022
15

 CLIENT
PBM Training   Quality Reporting
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Addendum to the EOB
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                       Addendum Clarification

                        CMS 2022 Final Rule will allow Hospice to furnish the
                         addendum within 5 days from the date of a beneficiary
                         or representative requests , if the request is within 5
                         days from the date of a Hospice election
Centers for Medicare
                        For example, if the patient elects Hospice on
 &Medicaid Services     June 1st and request the addendum on
                        June 3rd , the Hospice would have until
                        June 8th to furnish the addendum.
                        If the addendum is requested as care is proceeding, the
                         addendum must be provided within three days. This
                         was changed from the 2021 hospice proposed rule of
                         72 hours.
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                       2022 Final Rule Updates - Refusal to Sign
                        “If a patient or representative refuses to sign the addendum, the
                         Hospice must document clearly in the medical record (and on the
                         addendum itself ) the reason the addendum is not signed in order
                         to mitigate a claim denial for this condition for payment. In such a
                         case, although the beneficiary has refused to sign the addendum,
Centers for Medicare     the ‘date furnished’ must still be within the required timeframe
 &Medicaid Services      (that is, within three or five days of the beneficiary or
                         representative requests, depending on when such a request was
                         made), and noted in the chart and on the addendum itself .”
                        CMS is clarified that if a non-Hospice provider requests the
                         addendum, rather than the beneficiary or representative, the non-
                         Hospice provider is not required to sign the addendum.”
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                       2022 Final CoP Updates – COVID 19 Waivers
                        Hospice changes were finalized to the hospice aide competency
                         evaluation standards were made permanent
                            Hospice aide competency test once performed by observing
Centers for Medicare           a patient can now be assessed with a pseudo-patient, a
 &Medicaid Services            person trained to participate in a role play situation or a
                               computer- based mannequin device instead of actual
                               patients

                             If a concern is identified Hospice will be allowed to complete
                              a competency evaluation for the deficient skill and or related
                              skills instead of completing a full evaluation
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How to Stay Protocol Perfect
Know what is on the quality menu

      o HIS – Hospice Item Set

      o CAHPS (with Star Ratings on Compare Care)

      o HCI – Hospice Care Index

      o HVLDL – Hospice Visits in the Last Days of Life

      o HOPE – Hospice Outcome and Patient Evaluation
        (Coming Soon!)
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                        Quality Reporting Then

 HQRP                          HIS                              CAHPS
                                                              Consumer Assessment
 Hospice Quality           Hospice Item Set                   of Healthcare Providers
Reporting Program
                                                                    & Systems

                    •   Patient level data collection   •   National Survey of family
                        tool developed by CMS               members or friends
                    •   Hospices are required to        •   Conducted monthly
                        submit an HIS Admission
                        and Discharge record for all
                        patients
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                                  The HQRP Life Cycle
                                  Annual Payment Update (APU) Calculations

 Year 1: Data collection and submission
 Year 2: Compliance determinations
 Fiscal Year (FY): APU in effect
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                               Quality Reporting Now

                                                                  Administrative           Administrative
HQRP                  HIS                 CAHPS                    Data Claims              Data Claims
                                                                      HCI                    HVLDL

   CMS is preparing for HQRP data to be publicly reported in January 2022. It will
   contain additional quality measures that capture care across the hospice stay,
   including a new measure called the Hospice Care Index. Additionally, the claims-based
   Hospice Visits in the Last Days of Life (HVLDL) measure will be collected.
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                                    Hospice Item Set
                                    FY 2022 Updates

 Seven measures from the                 Remember
  Comprehensive Assessment                 The threshold for HIS is 90%.
  Measure section was removed
                                           Timely submission alone
 Submission still required
                                            does not equal compliance.
 Removal of measures will be no
  earlier than May 2022                    CMS resource: Timeliness
 Hospices that do not report HIS           Compliance Threshold Fact
  data will not meet the                    Sheet
                                             https://orbit.texthelp.com/?file=https://www.cms.gov/fi
  requirements for compliance                les/document/timeliness-compliance-threshold-his-
                                             submissions-fact-sheetaugust2021.pdf
  with HQRP
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                                     Hospice Care Index
 Includes 10 indicators of quality that are calculated from claims data

 Continuous Home Care (CHC) or         Burdensome transitions (Type 2 )
  General Inpatient Provided (GIP)       live discharges from hospice
 Gaps in nursing visits                 followed by hospitalization with the
 Early live discharges                  patient dying in the hospital
 Late live discharges                  Per – beneficiary Medicare
 Burdensome transition (Type 1 )        spending
  live discharges from Hospice          Nurse care minutes per routine
  followed by hospitalization and        home care (RHC) day
  subsequent hospital readmission       Skill nursing minutes on weekends
                                        Visits near death
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                              HQRP Quality Measure Summary
           HIS
Comprehensive Assessment    The proportion of patients for whom hospice preformed all 7 care
 Measure at Admission and   processes as applicable.
        Discharge
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                              HQRP Quality Measure Summary
           HIS
Comprehensive Assessment    The proportion of patients for whom hospice preformed all 7 care
 Measure at Admission and   processes as applicable.
        Discharge

         HVLDL               The proportion of patients that have received in-person visits from
      Claims Based           Registered Nurse or Social Worker on at least 2 out of the 3 final days of life.
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                              HQRP Quality Measure Summary
           HIS
Comprehensive Assessment    The proportion of patients for whom hospice preformed all 7 care
 Measure at Admission and   processes as applicable.
        Discharge

         HVLDL               The proportion of patients that have received in-person visits from
      Claims Based           Registered Nurse or Social Worker on at least 2 out of the 3 final days of life.

           HCI               A single measure comprising of 10 indicators calculated from Medicare
      Claims Based           claims
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                                HQRP Quality Measure Summary
           HIS
Comprehensive Assessment      The proportion of patients for whom hospice preformed all 7 care
 Measure at Admission and     processes as applicable.
        Discharge

          HVLDL                The proportion of patients that have received in-person visits from
       Claims Based            Registered Nurse or Social Worker on at least 2 out of the 3 final days of life.

            HCI                A single measure comprising of 10 indicators calculated from Medicare
       Claims Based            claims

           CAHPS
Survey of family members or   All 8 CAHPS measures are endorsed under NFQ #2651
           friends
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Summary

Overview of CMS updates

Wage Index & Payment Rates

Hospice Cap Amounts

Rebase and Revised Labor Share

Addendum Clarification

Quality Reporting Changes
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THANK YOU
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