January 15, 2018

CDI and Medical Necessity: Closing the Gap Could Prevent Denials

Medical policies are based off of evidence-based medicine. Without proper documentation, however, most providers struggle to get services or procedures covered for patients.

Exactly what is medical necessity? To many, it is the belief that a service or procedure is warranted or justified for a patient. Others view it as a way for health plans to deny coverage for a service.

The American Medical Association (AMA) defines medical necessity as “healthcare services or products that a prudent physician would provide to a patient for the purpose of preventing, diagnosing, or treating an illness, injury, disease or its symptoms in a manner that is (a) in accordance with generally accepted standards of medical practice; (b) clinically appropriate in terms of type, frequency, extent, site, and duration; and (c) not primarily for the economic benefit of the health plans and purchasers or for the convenience of the patient, treating physician, or other healthcare provider.” The “prudent physician” standard of medical necessity ensures that physicians are able to use their expertise and exercise discretion, consistent with good medical care, in determining the medical necessity of care to be provided each individual patient.

This is the standard many health plans adhere to and on which their typical payment policies are based. It’s also where we typically run into issues. Medical policies, at their cores, are based on evidence-based medicine. Without proper documentation, most providers struggle to get services or procedures covered for patients. This typically results in frustration and many phone calls to justify the services or procedures.

According to National Institutes of Health (NIH), evidence-based medicine (EBM) is the conscientious, explicit, judicious, and reasonable use of evidence in making decisions about the care of individual patients. EBM integrates clinical experience and patient values with the best available research information. It is a movement that aims to increase the use of high-quality clinical research in clinical decision-making.

EBM requires new skills of the clinician, including efficient literature-searching and the application of formal rules of evidence in evaluating clinical literature. The practice of evidence-based medicine is a process of lifelong, self-directed, problem-based learning, in which caring for one’s own patients creates the need for clinically important information about diagnoses, prognosis, therapy, and other clinical and healthcare issues.

When you pull these concepts together, this is how clinical indicators and polices are derived. Tailoring your clinical documentation to meet these criteria can help reduce administrative burdens and enhance the patient experience.

Most often, I see practices look at a policy and go straight to the covered diagnosis and procedural codes. This leads to a documentation fail.

Surgical practices are the most well-versed in clinical indicators, but they typically fail to tie them into the documentation. There are certain strategies you can employ to make this task more streamlined.

Let’s use cataracts as an example. Outside of your typical consent or treatment forms, you would want to make sure to use templates or documentation strategies that would capture the following for cataracts in the adult eye:

  • The type of cataract
  • Any ocular comorbidity, such as amblyopia, ARMD, diabetic retinopathy, glaucoma, strabismus, uveitis, etc.
  • High-risk characteristics such as anterior megalopia, corneal opacification, high hyperopia, high myopia, miotic pupil, posterior polar cataract, prior keratoplasty, psuedoexfoliation, etc.
  • Systemic comorbidities, hypertension, diabetes, heart disease, etc.
  • Testing performed with interpretation and report
  • Expected outcomes
  • Management plan
  • Counseling and referral

By building these into your standard documentation strategy, you will be able to support medical necessity, risk management, patient engagement, coding, and overall compliance. Utilizing the evidence-based nature of the guideline in your clinical documentation will enable you to improve and streamline your practice efficiencies.

For clinical documentation improvement (CDI) specialists, incorporating these into your teaching can help make it meaningful for a provider and help you gain buy-in and take any confusion out of the entire process.

Rhonda Buckholtz has more than 25 years of experience in healthcare, working in the management, reimbursement, billing, and coding sectors, in addition to being an instructor. She was responsible for all ICD-10 training and curriculum at AAPC. She has authored numerous articles for healthcare publications and has spoken at numerous national conferences for AAPC, AMA, HIMSS, AAO-HNS, AGA and ASOA. She is a past co-chair for the WEDI ICD-10 Implementation Workgroup, and current co-chair of the Advanced Payment Models Workgroup and has provided testimony ongoing for ICD-10 and standardization of data for NCVHS. Rhonda is on the board of ICD Monitor and the AAPC National Advisory Board. Rhonda spends her time as chief compliance officer and on practice optimization providing transformational services and revenue integrity for Ophthalmology practices. She was instrumental in developing the Certified Ophthalmology Professional Coder (COPC) exam and curriculum for the AAPC.

Related Stories

  • Is All Airway Protection Acute Respiratory Failure?
    Document it right on the front end; avoid fighting a denial on the back end I was recently asked about a post from Hospital Performance regarding acute respiratory failure and airway protection (https://soundphysicians.com/blog/2018/06/20/from-the-appeals-desk-acute-respiratory-failure-part-1-2/), and I wanted to expand on what…
  • The Controversy Continues: Medical Necessity versus MDM
    “Medical necessity” is a much-used but often-misunderstood concept. After our recent four-part series on the “Pitfalls of an Audit” and our last Talk Ten Tuesdays segment on the series, I had taken a position on medical decision-making (MDM) of the…
  • Advice for Coding and Documenting HIV
    National HIV Testing Day is June 27. Wednesday is National HIV Testing Day—a day designated to highlight the importance of testing in detecting, treating, and preventing human immunodeficiency virus (HIV) infection. This special day is designed to encourage people to get…