President’s letter

By: Barb Losi

I would like to thank the members, officers, directors, chairpersons and co-chairpersons for the assistance they have given me in accomplishing such a successful year. The educational hours of those attending our programs alone indicate the professional efforts of all those involved.

Congratulations to the newly elected officers and board of directors for the year 2001 to 2002. I wish you much success in the upcoming year, serving the member’s needs benefits not only them, but you too.

Officers are:

Lloyd E. Arakelian, CPA, FHFMA- President

Melvin M. Dyster, CPA, FHFMA - President-elect

Ronald Krawiec, FHFMA, CMCP - Secretary

Thomas R. Rybarczyk Treasurer

Board members for the term 2001 to 2003:

Debbie Cudzillo

Christopher Kalkhof, FACHE

Suzanne Roccisano

Robert Chiavetta, CPA

Serving their last year for the term of 2000 to 2002:

Robert Bragg

Jan M. Hayes

Susan Rudroff

Banquet

This year’s annual banquet will be on Friday, June 1st at the Niagara Club, Tiddledybrinks banquet room on 24 Buffalo Avenue. It’s located across from the bridge going to Goat Island over looking the upper rapids of the American Falls.

Welcome New Members

Allan J. Berecz

Director, Patient Accounts

Niagara Falls Memorial Medical Center

621 Tenth Street

Niagara Falls, NY 14301-1813

716/278-4512

716/278-4884 Fax

Jean H. Jurek

Project Director

Carolyn Cave Associates

8976 Amy Leigh Lane

Clarence Center, NY 14032

716/851-1513

716/841-1429 Fax

E. Anne Mason

Compliance Specialist

Catholic Health System

2157 Main Street

Buffalo, NY 14214-2692

716/862-1076

716/862-1349 Fax

Katherine A. Tomasulo

Manager-Customer Service

Kaleida Health

100 High Street – Hamlin 4

Buffalo, NY 14203

716/859-1547

716/859-1298 Fax

Transfer In Members

Teresa Marie Barrows

CPA Audit Manager

Deloitte & Touche LLP

50 Fountain Plaza, Suite 250

Buffalo, NY 14202-2212

716/843-7253

716/856-7760 Fax

Greg Martenson

Chief Financial Officer

HealthChoice

230 Schuyler St #7

Jamestown, NY 14701-7563

480/350-2210

Gregory S. Martin

Senior Financial Analyst

John Hopkins Health System

5300 Alpha Commons #300

Baltimore, MD 21224-2724

410/550-7186

410/550-1063

Federal Cost Report Filing Dates and Issues

Required filing of federal cost reports is on an annual basis and is on or before the last day of the fifth month following the close of the period covered by the cost report period. There have been significant changes to the hospital cost report due to the implementation of the Outpatient Prospective Payment System (OPPS), which became effective in August of 2000

The availability of the Provider Statistical and Reimbursement Report (PS&R) will not likely be until mid-summer and the federal cost report will probably not be due until August 31. It is hoped the PS&R will be produced and edited as soon as possible. The information has to be correct; production of the report with wrong data will cause inaccurate reimbursement settlements. If providers have the capability to tabulate the PS&R data they should proceed to do so and have this available for comparative proposes.

Institution Cost Report - NYS

The due date for the ICR is May 31, 2001. This may be extended if the federal cost report is to be due one or two months after that date. The Department of Health may elect to have filing of the ICR occur independently of the sequentially filing of the federal cost report if that report is substantially delayed.

The good news is Exhibit 37 – Trend Factor Weights Survey and Exhibit 38 – Trend Factor Labor Sub Weights Survey are being deleted. This information is no longer used and has been replaced by the Consumer Price Index. Credit was given to the “Western Region” work group in challenging the need for continuance reporting of certain exhibits.

The workgroup of reim-bursement specialists having to prepare the ICR will begin meeting again as soon as the software is distributed via the Health Provider Network (HPN). It will meet as frequently as the workgroup desires. As reporting is completed this year, members are urged to tabulate the hours it takes to complete the reporting, not only themselves but the demands upon other departments as well. Exhibits thought not to be useful should be identified and recommended to be deleted. Preferably not the entire report!

Successful Charge Master Educational Program

Our chapter, with the assistance of sponsorship funds, was able to bring to Western New York a nationally known expert on Charge Master Strategies. The meeting was held on March 8th with 93 persons attending. Evaluations of the meeting were very favorable and the highest ever recorded for our educational sessions.

Presenting was Rochelle A. Boyce Terebonne, BS, BA, RHIA, RHIT, CPC. Participants learned how to relate the charge master file as it applies to compliance, coding /billing and Ambulatory Payment Classification (APC’s). Material distributed was very valuable and was the current status of regulations. A subsequent distribution to the material was sent to participants for changes occurring shortly after the meeting date.

Members interested in researching the issue further should look up the article “Designing and Maintaining an Effective Charge Master”, written by Duane C. Abbey, PhD, CFP, page 50 in the March issue of the Healthcare Financial Management magazine.

Sponsorship Funds

Sponsorship program needs your help. It is substantially down from prior years. These funds enable the chapter to provide nationally known programs at remarkably low costs to the members. Without these funds, the cost of programs will increase. If you know of companies willing to contribute to educational needs of our chapter have them contact Mel Dyster at

887-4960 or . They will be acknowledged in the newsletters, routine communications and at every event held by the Chapter. For those events being specifically funded, special recognition will be given.

LMRP Revisions for April

Appearing in the Medicare News Update from Empire Medicare Services the contractor for Health Care Financing Administration are revisions to Local Medical Review Policies. The revisions apply to:

§  Allergy Immunotherapy (AL001E02)

§  Blood Glucose Testing

§  Bone Mass Measurement (YPF#66) (YRad#11)

§  Computerized Azial Topography (CT/CAT Scans) (RD003E02)

§  Urinalysis (YPF#124) (Ypath#29)

§  Vestibular Function Tests/Audio logic Services (AU001G01)

For further information obtain a copy of the April 2001 Medicare News Update in your billing department or on the web site: http://www.empiremedicare.com.

Non-member survey

The Chapter will be conducting a non-member survey verse a member survey. This is to obtain what their views are and what issues are important to them. It provides quality input to assist in providing services that will attract non-members to become members.

Helen M. Yerger Award

Our chapter has filed for recognition of the Helen M. Yerger Special Recognition Award for the immense effort put forth preparing members for Outpatient Prospective Payment System (OPPS), which became effective August 31, 2000.

Sessions held were:

o  May 3, 2000 - What’s Needed for July 1st

o  June 14, 2000 -APC’s: Legal, Implementation & Coding

o  March 8, 2001- Charge Master Strategies

o  Periodic weekly meetings of the Patient Financial Management Committee after the implementation date.

Meetings were designed to be informative and interactive. This was considered critical. Each weekly meeting included a review of what each facility was enacting to implement the OPPS. Recordings of AHA conference calls were also reviewed on what was occurring across the country.

Educational Hours reported to National HFMA

There are incentives and recognition awards for chapter activities. These include the Awards of Excellence for Education and the C. Henry Hottum Award for Educational Performance Improvement.

This year our Chapter is boarding on achieving the silver award for registrant hours per member of 12.88 or greater. As of the March 15, 2001 filing, we have earned 12.37. In our Region 2, omitting Puerto Rico we are the highest in NYS.

Registrant hours per member:

Central New York 3.13

Hudson Valley 7.45

Metropolitan NY 4.34

Northeastern NY 4.07

Rochester Regional 5.65

Western New York 12.37

Financial Results

With 18 facilities reporting the financial hardship on Western New York healthcare facilities continues. Operating losses totaling $50,900,000 has been recorded as compared to $57,600,000 last year. Net operating losses aggregate $34,400,000 as compared to $36,600,000 last year. Days in accounts receivable have grown to 71.4 compared to 68.3 of the previous year.

All this and the Commissioner of Health has openly stated that between 1995 and 1999, hospitals have achieved a cumulative $2.7 billion “profit” and that with these “profits” hospitals have the capacity to address problems facing them.

Yet in Syracuse, Crouse Hospital has filed for Chapter 11 bankruptcy protection and Rochester Genesee Memorial is closing because of financial hardship.

Annual Golf Outing

Mark your calendars for

July 27th and plan to attend the Annual Golf Outing in Stevensville, Ontario.

Editorial Policy

Opinions expressed in articles are those of the authors and do not necessarily reflect the view of the WNY Chapter, HFMA or Publications Committee. The HFMA and Publications Committee assume no responsibility for the accuracy or content of any articles published in the newsletter. Article submissions should be sent to:

Paul W. Sweet

WNY Healthcare Association

1876 Niagara Falls Boulevard

Tonawanda, NY 14150

716/695-0843

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