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Home health care stocks fall after Senate inquiry

Thu May 13, 2010 2:58 PM EDT
business, health, us, care, shares, senate-finance-committee, home-health-care
Tom Murphy, AP Business Writer
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INDIANAPOLIS — Shares of four home health care providers tumbled Thursday after the Senate Finance Committee raised questions about whether the companies have increased their number of patient visits out of medical necessity or in order to deliberately trigger higher Medicare reimbursements.

The committee sent letters to Amedisys Inc., Almost Family Inc., Gentiva Health Services Inc. and LHC Group Inc. asking for details about visits provided to patients, company guidelines and other information. The inquiry followed an analysis of Medicare data by The Wall Street Journal that showed that companies appeared to boost the number of visits they made to patients to 10 or above — the threshold at which Medicare reimburses providers an additional $2,200.

The letter, citing the Journal, noted that between 2000 and 2007 the number of patients Amedisys visited 10 times was three times higher than the number of people it visited 9 times.

Sen. Chuck Grassley, R-Iowa, said in a committee statement that companies need to make sure care is based on patient interests, not profit.

"So far, it appears that either the home health care reimbursement policy is flawed, some companies are gaming the system, or both," he said.

The committee also raised questions about an Amedisys fall risk assessment form. The first question on it asks if the respondent is 65 or older. "As 65 years is the age of eligibility for Medicare, the referral form raises concerns that the program may be taking advantage of Medicare payments in order to improve company profits," the letter to the companies said.

"Companies that work with Medicare should not be allowed to target seniors just because they have Medicare or adjust the way they care for patients simply to increase profits," said Sen. Max Baucus, D.-Mont., the committee's chair.

All four providers said they will cooperate with the Senate committee.

Almost Family CEO William Yarmuth said in a statement that his company's "Senior Advocacy" mission calls for it to offer care based only on patient needs and clinical conditions, "and we are confident that when our data is thoroughly reviewed, it will provide a much clearer picture than was portrayed in The Wall Street Journal article."

Amedisys said the WSJ article told "an incomplete story."

LHC said in a statement that all home care services, including therapy, "are dictated by an independent physician order." It also said the Journal assumed a static patient population from 2007, but the company's home health population grew nearly 47 percent in 2008 which dramatically changed the makeup of its top 20 patient diagnoses.

Shares of Almost Family fell $3.22, or 7.6 percent, to close at $39.37. Amedisys fell $4.48, or 8 percent, to $51.73; Gentiva was down $2.20, or 7.4 percent, to finish at $27.55; and LHC shares dropped 83 cents, or 2.3 percent, to $35.28.

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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PeoplesRep

As a resident in the State of Tennessee, this whole Medicare and Medicaid system is corrupt from the Top, down. Who suffers, the $8 per hour Caregiver and most importantly, the patient, who would rather stay in their own home, as opposed to being warehoused in a Nursing home.

As an overseer in my 96-year old grandmother's care, I found myself, nearly on a daily basis of "connecting-the-dots" for these licensed providers, meaning.., the physician, home health agency (yes, Amedisys), TennCare's R.N. Case Manager, hospital discharge planning, down to the Durable Medical Equipment providers. These professionals poorly communicate, if at all, about the changes in a patient's condition. No respect is given to the $8 an hour Caregiver's assessment; and the primary responsible family overseer, barely gets some respect; but only if their educational and communication skills are on par with these providers.

This article just typifies the routine practices of Home Health Agencies, hospitals (especially), DME providers down to physicians. Basically, for all of these service providers, it boils down to one thing.., capitalize upon any and every treatment modality for the patient "focused" condition, whether they need it or not; because its a "them (meaning.., Medicare & Medicaid) versus us" disposition.

Are these providers engaging in criminal activity or taking advantage of lapses in regulation? Yes and No. These providers are fighting for survival.., their jobs, and way of life, by any means necessary. Then who's to blame? Nepotistic States, the federal regulatory rule-makers, and the king-pins themselves, antiquated thinking, blasphemous, grandstanding and electorate point pander politicians! The politicians don't have a Dammn clue on how the day-to-day life-cycle of health care delivery is ran. For example, in the State of Tennessee, I applied for "HCB Waiver Program"about 2-years ago for my grandmother to get in-home personal attendant services, which is paid through the Medicaid program (subsidized by the federal government), if the applicant financially qualifies. It took about three months before she was approved. Part of the program also pays for minor home modifications, i.e., building a wheel chair ramp. About one month ago, nearly two years from application, TENN Care finally installed the wheel chair ramp. Now, one week ago, I had to make the painful decision to place my grandmother in the nursing home, because TENN Care only would provide a maximum of 7-hours of Caregiver service, 5-days a week.

But before then, each time my grandmother had a doctor's appointment, I had to meet her caregiver at home to literally pick my grandmother up, carry her up and down steps, to put her into the car. I'm 54-years old, with one bad knee. Complaining always went on deaf ears. You always got the typical story.., well, you know TENN Care, its a process. I contacted my federal representative, "Phil Roe," his office writes back and says its a State of TENN issue. Well, nobody's home at TENN Care. You contact their Patient Advocate, and you get a recorded message, and maybe a call-back in about a week.

We've got people on payrolls in the State of Tennessee (top tiered) professionals that are paper pushers, waiting on someone "up above in rank" to tell them what and when to do it, with no apparent authority to make on the spot decisions.

Here's another example of our fine system in the State of Tennessee. Durable Medical Equipment providers at times, deliver wrong size items, or not the product that you requested. You contact your TENN Care Case manager and report it (the family member or caregiver) does not have the authority to order DME products, it must be approved; you instruct your Case Manager to have the DME provider to pick the products up. However, you are informed that once the order is approved and delivered, the DME provider cannot take it back. As a result, I've got stored in my home, about twelve boxes of adult diapers and bed pads. For the sake of argument, let's just say one box of adult diapers with eight to one box is billed to MediCaid @ $14 x 8 = $112 per box (12) boxes equals $1,344 ! Now, can you imagine just how many other wrong purchase orders that I am told.., "can't be returned, once approved and ordered...? Remember the $8 per hour caregiver?

I got another one for you. What happens when a TennCare Case manager orders a $3,000 motorized recliner chair from an "unknown" DME provider, and the chair only works for about two years. You look everywhere on the chair to see who delivered it, but no stamp or marking of the vendor. You contact the TENN Care Case manager and inquire about the unknown DME provider, but she tells you, "it wasn't ordered on my watch; I have to get back with you on that, because it could be any number of TENN Care's DME providers. Well, glad I didn't hold my breath, I'm still waiting on an answer.

Nobody wants to connect the dots. Everyone in the food-chain is always waiting in the wings from a higher authority to tell them what to do. To maintain employment, and for fear of being "blacklisted" in their circle of comfort, no one will take personal responsibility to say, and do what is right. Our nation's leaders, both in public and private sectors, have successfully transformed our work force into a bunch of faceless followers, with no backbone.

I welcome all comments.

    Reply#1 - Tue May 18, 2010 8:13 AM EDT
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