Hospice Billing

Provisional Period of Enhanced Oversight for New Hospices

In recent years, CMS has reported a significant increase in fraudulent hospice billing practices, which cost the Medicare program millions of dollars annually. The CMS has initiated a period of enhanced oversight for new hospices in Arizona, California, Nevada, and Texas which aims to curb fraud, waste, and abuse within the Medicare system as a direct response to these findings. These states were chosen based on data indicating heightened vulnerabilities in fraud, waste, and abuse in hospice care.

The criteria defining a new hospice include:

  • Newly enrolled in the Medicare Program as of 07/13/2023.
  • Submitted a CHOW that meets the regulatory requirements under 42 CFR 489.18. Underwent a 100% ownership change that does not qualify under 42 CFR 489.18.
  • Reactivating after a period of deactivation.

Your hospice facility may be subject to this enhanced oversight if it fits any of the following conditions:

  • Received final approval for Medicare enrollment on or after 07/13/2023.
  • Began the enrollment or certification process before 07/13/2023, but has not yet received final approval from your MAC.
  • Obtained approval for a change of ownership request on or after 07/13/2023.

The enhanced oversight will include medical reviews, such as prepayment reviews, and can last from 30 days up to a year, depending on the findings of CMS review and audits.

The goal of this oversight is to ensure compliance and protect the integrity of Medicare services provided by hospice care facilities.

If you have questions, email ProvisionalPeriod@cms.hhs.gov.

If you feel you have been put on the PPEO in error, please contact your local MAC provider enrollment department.

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Posted 12/11/2024