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Miles & Peters assists hospitals in navigating through the complex state and federal regulatory environment. The firm provides representation for all aspects of facility operation and management, such as regulations involving licenses, certification, business transactions, contracts, labor and employment, and sales and acquisitions.

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CMS PROPOSES REVISIONS TO HOSPITAL CONDITIONS OF PARTICIPATION

CMS issued March 24 a proposed rule that would revise certain requirements in hospital conditions of participation (CoPs). The revisions focused on hospital CoPs for competition of history and physical examinations, authentication of verbal orders, securing medications, and completion of post anesthesia evaluations.

For more information go to www.cms.hhs.gov to read the proposed rule in the March 25 Federal Register , go to www.healthlawyers.org/docs.ask2005/70FR_15266.pdf.

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DHHS OIG APPROVES COST SAVINGS SHARING ARRANGEMENT BETWEEN SURGEONS AND HOSPITAL

 In Advisory Opinion No. 05-01 released on February 4, the DHHS Office of Inspector General (OIG) said a proposal by a hospital to share with a group of cardiac surgeons a percentage of the hospital’s cost savings arising from the surgeons’ implementation of cost reduction measures for certain surgical procedures could potentially generate prohibited remuneration under the Anti-Kickback Statute, but that it would not impose administrative sanctions in connection with the arrangement.

To read the Advisory Opinion, go to www.healthlawyers.org/docs/ask2005/AO_0501.pdf.

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CONGRESS SHOULD EXTEND SPECIALTY HOSPITAL MORATORIUM PENDING FURTHER REVIEW, MEDPAC ADVISES

 Congress should extend the current moratorium on the development of new specialty hospitals through January 1, 2007, the Medicare Payment Advisory Commission (MedPAC) recommended in its latest report on the issue. MedPAC said the extension is needed to allow further study on the effect of these limited service facilities. At the same time, MedPAC also recommended changes to the way Medicare reimburses hospitals for inpatient services “to improve the accuracy of the recommended changes to the way Medicare reimburses hospitals for inpatient services “to improve the accuracy of the payment system and thus reduce opportunities for hospitals to benefit from selection. Meanwhile, the House Ways and Means Subcommittee on Health and the Senate Finance Committee held hearing on the specialty hospital issue at which Senate Finance Committee Ranking Minority Member Max Baucus (D-MT) expressed concern that “when it comes to physician ownership of speciality hospitals, I’m not sure the playing field is level.”

For more information on the Senate finance Committee hearing, go to http://www.finance.senate.gov/sitepages/hearing030805.htm.

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OIG ADDRESSES GAIN-SHARING ARRANGEMENTS IN RECENT ADVISORY OPINIONS

In February 2005, the U.S. Department of Health and Human Services Office of Inspector General (OIG) released a series of Advisory Opinions that provide guidance to hospitals on structuring gain-sharing arrangements with physicians. The opinions mark the latest in a series of OIG pronouncements on gain-sharing over the last several years. While the opinions continue to express the OIG’s longstanding view that such arrangements could lead to reductions in care and allow hospitals to generate kickback type payments to physicians, the opinions also reveal that gain-sharing arrangements containing certain features will not be subject to enforcement action by the OIG.

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THE NEW OIG ENFORCEMENT GUIDANCE FOR HOSPITALS

On January 27, 2005, the United States Department of Health and Human Services (DHHS) Office of Inspector General (OIG) released its revised “Supplemental Compliance Program Guidance for Hospitals” (Guidance). The new Guidance supplements the OIG’s 1998 hospital compliance program guidance. Compliance officers, in-house counsel, and hospital management can use the Guidance to target their audit efforts, as well as to develop a better understanding of the OIG’s current interpretations of healthcare enforcement laws and regulations.

http://oig.hhs.gov/fraud/docs/complianceguidance/
012705HospSupplementalGuidance.pdf

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DOJ OFFERS GUIDANCE ON NONDISCRIMINATION AGAINST
LIMITED ENGLISH SPEAKERS

The Civil Rights Division of the U.S. Department of Justice issued guidance October 26 on what recipients of federal assistance-including hospitals-must do to ensure they are not discriminating against those with limited English proficiency.

The guidance is online at www.usdoj.gov/crt/cor/lep/Oct26Memorandum.htm.

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CMS PUBLISHES NATIONAL PROVIDER IDENTIFIER FINAL RULE

On January 23, 2004 CMS published the long awaited National Provider Identifier (NPT) final rule. This NPT final rule requires all health care organizations to use an assigned identifier for each health care provider when filing and processing electronic claims and other standard transactions.

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