Insight Article
Telemedicine – A Cost-Effective Alternative to Improve Patient Access
By Jeanne Chapdelaine, Director
February 2016
Health care services have traditionally been conducted through faceto-face exchange of information between provider and patient, but
advanced technology has changed how, when, and where patient
care can be delivered. For example, many patients prefer to
communicate with their provider online, patient portals allow patients
immediate access to their medical information, and providers can
collaborate about patients via telemedicine, which has become a
cost-effective alternative to face-to-face patient services.
The term “telemedicine” refers to the remote diagnosis and treatment
of patients by means of telecommunications technology. For
Medicare payment to occur, interactive audio and video
telecommunications must be used, permitting real-time
communication between the distant site physician/practitioner and
the Medicare beneficiary. Commercial payers are beginning to follow
Medicare payment guidelines and are also creating innovative ways
of paying for health care services outside the scope of a traditional
face-to-face encounter.
You will need to review your payer contracts
for the specific payment policies related to telehealth services.
To ensure Medicare coverage, however, a telehealth service must be:
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On the list of covered Medicare telehealth services (see
below).
Furnished via an interactive telecommunications system.
Furnished by a physician or other authorized practitioner.
Furnished to an eligible telehealth individual.
Furnished to an individual receiving the service in a
telehealth originating site and participating in the
telehealth visit.
When all of the above conditions are met, Medicare pays a facility
fee to the originating site (the location of the Medicare beneficiary at
the time the service is being furnished) and a separate payment to
the distant site practitioner (at the site where the physician or
practitioner providing the professional service is located at the time
the service is provided).
Medicare beneficiaries are eligible for telehealth services only if the
originating site is located in a rural Health Professional Shortage
Area (HPSA) located either outside of a Metropolitan Statistical Area
(MSA) or in a rural census tract or in a county outside of a MSA.
Entities that participate in a federal telemedicine demonstration
project approved by (or receiving funding from) the Secretary of the
Department of Health and Human Services qualify as originating
sites regardless of geographic location. Each calendar year, the
eligibility of an originating site is established based on the status of
the geographic area as of December 31 of the prior calendar year;
eligibility continues for the full calendar year.
© Wipfli LLP
Medicare eligible telehealth services include (see the complete list at
the link at the end of this article):
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Office or other outpatient services.
Outpatient mental health services.
Health and behavior assessment/intervention.
Outpatient substance abuse services.
Transitional care management services:
o CPT 99495 & 99496
Complex chronic care services for patients with multiple
chronic conditions under certain conditions:
o CPT 99487 & 99489
Prolonged service inpatient procedures:
o CPT 99356 & 99357
ESRD-related services for home dialysis:
o CPT 90963 – 90966
The above services may be billed (subject to state law) if they are
performed at the “distant site” by a physician, nurse practitioner (NP),
physician assistant (PA), certified nurse midwife (CNM), clinical
nurse specialist (CNS), clinical psychologist (CP), clinical social
worker (CSW), CRNA, or a registered dietician or nutritional
professional.
The opportunity for telemedicine services is growing rapidly, faster
than reimbursement at this point. For example, some new innovative
ways that telemedicine is being used include remote patient
monitoring for population management and remote intensive care
monitoring through eICU programs (e.g., early warning signs of
sepsis).
With the right tools and technology, many other opportunities
will be created for remote patient care services.
There are many benefits to providing services via telemedicine. It
mitigates access barriers related to distance, increases efficiency of
tertiary centers, keeps health care dollars in local communities, and
likely reduces health care costs. In addition, it can improve overall
quality of care by:
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Allowing patients to be seen more quickly and in a location
they can get to, particularly for specialty care.
Improving communication among providers.
Educating both the consultant and primary care provider.
Increasing satisfaction for the patient and the provider.
Increasing local perception of quality of care.
Coding and Documentation for Telehealth Services
The originating site (where the patient is) should report the HCPCS
code Q3014 (telehealth originating site facility fee) under type of
service 9 (other items or services) in the place of service 11 (office).
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Insight Article
This facility fee is a separately billable Part B service. For the
professional service (at the distant site), the CPT code for the
specific service provided would be reported, appended by the GT
modifier (via interactive audio and video telecommunications
system).
Strategies for Successful Implementation
In order to ensure an efficient implementation in your organization,
be sure to:
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Obtain institutional and administrative support for
telemedicine services.
Integrate with existing infrastructure for
documentation/coding/billing processes.
Start with low hanging fruit services where opportunity
exists to address specific patient needs that are not
currently being met.
Identify the outcomes you wish to measure and develop a
system to do so.
Develop (and share) quality metrics, demonstrating the
“win-win” for both sides.
Partner with policymakers and support further
enhancements to reimbursement for telemedicine services.
For more information, please refer to the most recent MedLearn
Matters article at:
https://www.cms.gov/Outreach-and-Education/Medicare-LearningNetwork-MLN/MLNProducts/downloads/TelehealthSrvcsfctsht.pdf
The 2016 list of eligible telehealth services can be found at:
ï‚· https://www.cms.gov/Medicare/Medicare-GeneralInformation/Telehealth/Telehealth-Codes.html
© Wipfli LLP
About the Author
Jeanne Chapdelaine, Director
With over 25 years of health care experience, Jeanne Chapdelaine is
the director of Wipfli LLP’s revenue optimization and integrity (ROI)
service line. She coordinates service delivery to health care clients
for their revenue capture processes, coding and documentation,
business office functions, service pricing, reimbursement, regulatory
compliance, and third-party payor contracts and provides a wide
range of related technical services to the firm’s clients. Jeanne helps
health care organizations by focusing on the issues that will have the
greatest financial impact.
Her national client mix ranges from small
rural practices to large health systems. She works well with
physicians, gaining their confidence and cooperation.
About Wipfli’s Health Care Industry Practice
Wipfli’s national health care practice has nearly 100 associates
dedicated to serving more than 1,800 clients in 46 states, including
integrated delivery systems, large community hospitals, critical access
and rural hospitals, physician practices, and senior living
organizations. Wipfli can advise in all areas of business, from finance
and operations to human resources, information technology, and
reimbursement.
For more information, visit www.wipfli.com/healthcare.
About Wipfli LLP
With more than 1,500 associates, 32 offices in the United States, and
2 offices in India, Wipfli LLP ranks among the top 25 accounting and
business consulting firms in the nation. For over 85 years, Wipfli has
provided private and publicly held companies with industry-focused
assurance, accounting, tax, and consulting services to help clients
overcome their business challenges today and plan for tomorrow. For
more information, visit www.wipfli.com.
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