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[image: Your Daily Update] December 6th, 2011 Home health care

firms breaking rules, raking in Medicare dollars - Houston

Chronicle<http://ptmanagerblog.com/home-health-care-firms-breaking-rules-raking>

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Home health care firms breaking rules, raking in Medicare dollars

TERRI LANGFOR, HOUSTON CHRONICLE Copyright 2011 HOUSTON CHRONICLE. All

rights reserved. This material may not be published, broadcast, rewritten

or

redistributed.<http://www.chron.com/news/houston-texas/article/Home-health-care-\

firms-breaking-rules-raking-in-2342534.php#license-4edcc84543af4>

By TERRI LANGFORD, HOUSTON CHRONICLE Updated 10:11 p.m., Saturday, December

3, 2011

$1.25 billion: Medicare money paid to Houston area agencies over four years.

$334 million: Amount paid in 2010.

468: Number of companies in Houston region.

129: Number of companies paid at least $1 million in 2010.

289: Number of companies receiving at least $1 million between 2007 and

2010.

Source: Chronicle analysis of Centers for Medicare and Medicaid Services

data

American taxpayers spend tens of millions of dollars on Medicare

(Page 1 of 2)

The nation's

Medicare<http://www.chron.com/?controllerName=search & action=search & channel=news%\

2Fhouston-texas & search=1 & inlineLink=1 & query=%22Medicare%22>program

has dished out $1.25 billion for home-based health care in Houston

over four years - and yet nearly every agency that provides nurses,

therapists and drugs for the elderly and disabled has violated state and

federal standards, a Houston

Chronicle<http://www.chron.com/?controllerName=search & action=search & channel=news\

%2Fhouston-texas & search=1 & inlineLink=1 & query=%22Houston+Chronicle%22>investigati\

on

has found.

Still, little stops the flow of taxpayer dollars to the nearly 470

companies based in America's fourth largest city.

Dubbed " deficiencies " by the Texas

Department<http://www.chron.com/?controllerName=search & action=search & channel=new\

s%2Fhouston-texas & search=1 & inlineLink=1 & query=%22Texas+Department%22>of

Aging

and Disability

Services<http://www.chron.com/?controllerName=search & action=search & channel=news%\

2Fhouston-texas & search=1 & inlineLink=1 & query=%22Aging+and+Disability+Services%22>\

,

they include violations like failure to make sure drugs and treatments are

administered properly and failure to report abuse of a patient.

Federal authorities say not only are companies falling short on certain

standards of care, some also are bastions for potential fraud - its victims

patients and taxpayers.

Though federal authorities declined to provide details, citing ongoing

investigations, Assistant U.S. Attorney Justo

Mendez<http://www.chron.com/?controllerName=search & action=search & channel=news%2F\

houston-texas & search=1 & inlineLink=1 & query=%22Justo+Mendez%22>told

the Chronicle that some of the company billings in Houston are the

result of " fraudsters " who " bill for services not rendered. "

Earlier this year, Houston's Craig

O'Connor<http://www.chron.com/?controllerName=search & action=search & channel=news%\

2Fhouston-texas & search=1 & inlineLink=1 & query=%22Craig+O%27Connor%22>was

witness to the wiles of the industry.

His elderly mother, suffering from a poorly healed wound on her foot, was

sent home from the hospital with a recommendation to use a home health care

agency to help her recovery. Instead, he says his mother's convalescence

was turned upside down as workers from the recommended company made a

beeline to his mother's door.

" This was my first experience with Medicare, and I quickly became alarmed

about all the doctors and health aides who were practically falling all

over themselves to schedule house calls to see my mother, "

O'Connor recalled.

One of the " doctors " who showed up wasn't even really a doctor, he said.

Federal auditors repeatedly have noted the exploding and profitable growth

of home health care in the Lone Star State, where Medicare spending has

blown up to three times the national growth rate.

The Chronicle's examination of payment records showed that even in the tiny

town of Edinburg in South Texas, 27 home health care agencies have received

$331 million over the last four years.

Two months ago, a Chronicle investigation of the private ambulance business

found millions in Medicare dollars spent on questionable transports of

able-bodied patients to mental health clinics.

*Booming business*

Houston's County leads the nation in the number of nonemergency

ambulances, companies and Medicare billings with more than $62 million

coming to some 400 companies in 2009 alone.

And yet, the home health care industry is even larger - and richer: $384

million was paid to 468 Houston companies in 2010.

Like private ambulances, no one state agency is charged with determining

how much money is too much, or how many companies are too many. And

Medicare's direct contact with the companies that bill the mammoth

insurance agency for the elderly and disabled is minimal.

The Centers for Medicare and Medicaid Services, or CMS, delegates nearly

all of its authority to contractors, a mix of private companies and state

agencies. Those contractors, not the federal agency, decide what companies

qualify for Medicare and pay the patients' bills.

*'Termination track'*

In Texas, it's the state Department of Aging and

Disability<http://www.chron.com/?controllerName=search & action=search & channel=new\

s%2Fhouston-texas & search=1 & inlineLink=1 & query=%22Department+of+Aging+and+Disabil\

ity%22>Services,

or DADS, that does the licensing, inspecting and investigating of

home health agencies - a chore it is contracted to do for Medicare as well.

If the agency finds federal violations that endanger a patient's health,

the report is sent to CMS and a " termination track " clock begins. The

company has 90 days to correct the problems, with DADS in charge of

checking back.

Through all of this, however, no one from the $760-billion CMS ever sets an

eyeball on a home health agency in Houston, where 289 companies have

collected $1 million or more from 2007 through 2010.

Last year, 129 companies hit the $1 million Medicare mark.

When asked exactly how many agencies in Texas with federal violations end

up on Medicare's " termination " track, CMS' Dallas spokesman Bob

Moos<http://www.chron.com/?controllerName=search & action=search & channel=news%2Fho\

uston-texas & search=1 & inlineLink=1 & query=%22Bob+Moos%22>referred

the question back to Texas authorities.

" We're not aware of any Texas home health care providers on a … termination

track at the moment, but, frankly, DADS will have a better handle on this,

since it's the one that actually does the inspections, " Moos said.

Home health care agencies say they're being overly scrutinized because of

fraud in the industry, with nearly every agency getting dinged for

infractions that aren't that serious.

" I respect the home health industry's position on this, but we're not going

to let up on them, " said DADS Commissioner Chris

Traylor<http://www.chron.com/?controllerName=search & action=search & channel=news%2\

Fhouston-texas & search=1 & inlineLink=1 & query=%22Chris+Traylor%22>.

" Our job is to hold them accountable for any violations we find, and that

won't be changing. "

The hundreds of deficiencies run the gamut from the bureaucratic, like

missing paperwork, to the problematic: not reporting within 24 hours

knowledge of an act of abuse, neglect or exploitation by a worker; failing

to make sure a patient's care plan is reviewed by doctors; nurses or

therapy supervisors not making home visits when required; not checking

properly for Medicare eligibility; and lacking written plans to control

infection and disease.

But if no agency is about to be terminated and risk losing tens of

thousands, if not millions of dollars in Medicare money, why have an

inspection system?

" Our top priority is the health and safety of the clients, " said DADS

spokeswoman Cecilia

Fedorov<http://www.chron.com/?controllerName=search & action=search & channel=news%2\

Fhouston-texas & search=1 & inlineLink=1 & query=%22Cecilia+Fedorov%22>.

" Our investigations focus on the quality of care provided and when we find

that an agency is not in compliance with regulations, we require timely and

appropriate corrections. "

Last month, the U.S. Department of Health and Human Services' Office of

Inspector

General<http://www.chron.com/?controllerName=search & action=search & channel=news%2\

Fhouston-texas & search=1 & inlineLink=1 & query=%22Office+of+Inspector+General%22>rep\

orted

that contractors charged with detecting fraud have had a series of

problems that " affected their ability to identify potential fraud and

abuse " and track the collection of overpayments.

*Bad coordination?*

" The government has enough information that they should be able to find

this stuff. They ought to go look, " said

Hammon<http://www.chron.com/?controllerName=search & action=search & channel=news%2F\

houston-texas & search=1 & inlineLink=1 & query=%22+Hammon%22>,

director of clinical practice and regulatory affairs for the Texas

Association of Home Care & Hospice. " I think the big problem I see is how

the various government agencies coordinate. Each one says 'That's not what

I do' or 'I'm not funded.' "

Some health care agencies counter that they're made scapegoats by the

inspections as both state and federal agencies are pressured to do

something about the nation's soaring Medicare bills.

*'I go by the rules'*

Edna Lewin, administrator of The Trend Health Care

Services<http://www.chron.com/?controllerName=search & action=search & channel=news%\

2Fhouston-texas & search=1 & inlineLink=1 & query=%22The+Trend+Health+Care+Services%22\

>,

says violations do not mean home health agencies or their workers are

not safe.

The 32 " deficiencies " her company received in 2009 - the most by one

company in Houston - were all corrected.

" You need to know the story, " she said. " I live above-board. If I didn't, I

wouldn't be in business. "

Dorothy , a registered nurse who created her Lanoitan Home Health Care

of Texas in 1978, was cited for 21 deficiencies last year, all of which she

says were corrected immediately.

" If you look at my record, it's superb, " she said. " I think I'm getting the

flak because there's so much fraud in home health care. I refuse to be a

part of it. I'm old school. I go by the rules. "

In 2009, the General Accountability Office reported Medicare's spending on

home health care totaled $12.9 billion in 2006, up 44 percent in 2002.

It also zeroed in on several problems, some in Houston, including home

health care agencies' propensity to overstate a patients' condition in

order to get Medicare money. Nearly 700 patients deemed most severe " were

served by potentially fraudulent (home health care), " the audit stated.

Federal officials in Houston also are investigating kickback schemes and

billing for " services not rendered " but could not comment on specifics.

" Law enforcement's efforts alone will not stop this fraud, " said Elvis

McBride, who supervises the FBI's Health Care Fraud Task Force in Houston.

" It takes CMS or Medicare to put edits in place to prevent certain types of

payouts. It takes education (for Medicare patients). "

*Billing doubles*

Even before Houston's explosive growth in home health care, federal

auditors noted that not only had the number of people getting Medicare

benefits doubled, but so did the number of times agencies billed for a

visit to a patient: from 36 times to 73.

" I have a problem with the government not watching who is billing what, "

said Anita Bradberry, executive director of the Texas Association of Home

Care & Hospice. " It's not that home health is bad. Home health is the

solution to a lot of our health care problems. "

via

chron.com<http://www.chron.com/news/houston-texas/article/Home-health-care-firms\

-breaking-rules-raking-in-2342534.php>

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