Tag Archives: cap

Compliance with Conditions of Participation Necessary for Reinstatement of Terminated Medicare Billing Privileges or Revoked Medicare Provider Number and Participation Agreement

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

We have recently experienced an alarming increase in the number of Medicare providers receiving notices that their Medicare billing privileges are being terminated.  These include home health agencies (HHAs), independent diagnostic testing facilities (IDTFs), ambulance and emergency transport providers, physicians, pharmacies, durable medical equipment (DME) providers, medical groups, physical therapists and therapy providers.  In most cases, this is because the health care provider has failed to update its address with the Medicare Program.  To see a prior article we wrote on this, click here.

Most often this occurs when a site visit by the Medicare administrative contractor (MAC) (previously called the carrier or fiscal intermediary) arrives at the business location on file with Medicare and finds the provider’s business location has changed.  Other times the termination is because of a minor technical violation of Medicare rules, such as being closed when a site inspector shows up, failing to have hours of operation posted, failing to have a required insurance policy in place, failing to be open at the time the inspector shows up, or other similar reasons.

If the health provider does nothing to appeal the revocation, then there is a required waiting period of at least one year before it can even reapply to the Medicare Program.  The termination may also have extremely serious consequences regarding participation in the state Medicaid Program, licensure, other contracts, clinical privileges, participation on insurance provider panels and related businesses.

We recommend immediately retaining an experienced health attorney to help you prepare and file a corrective action plan (CAP), request for reconsideration of the decision and an appeal, if necessary.  We recommend that you include proof of currently meeting every required condition of participation (COP) for your health specialty, service or item.  We include copies of written policies adopted, new forms, new procedures, insurance policies, copies of CMS forms 855 that were previously submitted, and other documents that may be required by the COP.  Please see our prior blog/article on submitting CAPs.

For access to each of the conditions of participation (COP) and conditions for coverage (CFC), click on the following link, or cut and paste it into your internet browser:

http://www.cms.gov/Regulations-and-Guidance/Legislation/CFCsAndCoPs/index.html?redirect=/CFCsAndCoPs/

About the Author:  George F. Indest III, J.D., M.P.A., LL.M., is Board Certified by The Florida Bar in Health Law.  He is the President and Managing Partner of The Health Law Firm, which has a national practice.  Its main office is in the Orlando, Florida, area.  www.TheHealthLawFirm.com  The Health Law Firm, 1101 Douglas Ave., Altamonte Springs, FL 32714, Phone:  (407) 331-6620.

Alleged HIPAA Privacy Violations at the Center of a Recent Physician Group Settlement with HHS

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

A small physician group has reached a settlement with the United States Department of Health and Human Services (HHS) Office for Civil Rights (OCR) over alleged Health Insurance Portability and Accountability Act of 1996 (HIPAA) violations. The settlement was reached on April 17, 2012 and requires Phoenix Cardiac Surgery (PCS) to pay OCR $100,000 and enter into a one-year corrective action plan (CAP).

The Resolution Agreement and Corrective Action Plan can be viewed here.

HIPAA Complaint Against PCS Stemmed from Internet Calendar Postings

OCR’s investigation of PCS was launched in 2009 after a complaint was received. Click here to view a HIPAA complaint that you can file online. The complaint alleged that PSC had disclosed protected health information (PHI) on patients on the Internet. After investigating the complaint, the OCR alleged that PCS violated the HIPAA privacy and security rules. According to the OCR, PCS posted clinical and surgical appointments on a publicly accessible, Internet calendar. The OCR also alleged that PCS employees e-mailed protected health information to their personal e-mail accounts.

Furthermore, PCS allegedly did not have adequate administrative, physical and technical safeguards in place to protect patient data. The OCR alleged that PCS did not appoint a security officer as required by HIPAA or perform an accurate and thorough risk assessment, also required by HIPAA. The CAP required by the settlement will require PCS to implement policies to ensure full compliance with HIPAA’s privacy and security rules.

Are You In Compliance with HIPAA?

The Health Insurance Portability and Accountability Act of 1996, sometimes referred to as the Kennedy-Kassenbaum Act, was enacted into law as Public Law (P.L.) 104-191, 110 Stat. 1936. Among its many different provisions, it included basic minimums to ensure the privacy of personal medical information. Its main privacy provisions are codified in federal law in different sections of the U.S. Code.

Medical Practices Should Use Caution When Working With Electronic Health Information

This case provides a good example of the downside of information technology (IT). While electronic health information assists in increasing accessibility and efficiency, it can also increase a practice’s risk of violating HIPAA’s Privacy Rule and Security Rule.

All medical practices that utilize electronic health information need to ensure that they have effective IT security, education, policies and procedures in place to protect themselves from HIPAA’s violations.

Contact a Health Law Attorney Experienced in Defending HIPAA Complaints and Violations

The attorneys of The Health Law Firm represent physicians, medical groups, nursing homes, home health agencies, pharmacies, hospitals and other healthcare providers and institutions in investigating and defending alleged HIPAA complaints and violations and in preparing Corrective Action Plans (CAPs).

For more information about HIPAA violations, electronic health records or corrective action plans (CAPs) please visit our website at www.TheHealthLawFirm.com or call (407) 331-6620 or (850) 439-1001.

Sources Include:

HHS Press Office. “HHS Settles Case with Phoenix Cardiac Surgery for Lack of HIPAA Safeguards.” U.S. Department of Health and Human Services. (Apr. 17, 2012). Press Release. From
http://www.hhs.gov/news/press/2012pres/04/20120417a.html

Lewis, Nicole. “Online Calendar Mistakes Cost Doctors Group $100,000.” Information Week. (Apr. 23, 2012). From
http://www.informationweek.com/news/healthcare/security-privacy/232900727

Sterling, Robyn. “HHS Settlement for Lack of HIPAA Safeguards.” Proskauer Privacy Law Blog. (Apr. 25, 2012). From
http://www.jdsupra.com/post/documentViewer.aspx?fid=e548966a-d7eb-4f47-a0af-de15db487dbb/

About the Author:  George F. Indest III, J.D., M.P.A., LL.M., is Board Certified by The Florida Bar in Health Law.  He is the President and Managing Partner of The Health Law Firm, which has a national practice.  Its main office is in the Orlando, Florida, area.  www.TheHealthLawFirm.com  The Health Law Firm, 1101 Douglas Ave., Altamonte Springs, FL 32714, Phone:  (407) 331-6620.

Have You Received a Notice of Termination of Your Medicare Provider Number?

Have you received a notice of termination of your Medicare provider number? Medicare has been revoking the Medicare provider numbers of many different Medicare providers including physicians, medical groups, home health agencies (HHAs), pharmacies, and durable medical equipment (DME) providers, based on returned mail sent to old addresses which have not been updated or based on inspection team site visits to old addresses.

Often the termination is retroactive to a much earlier date the change or move may have been determined to have occurred. Even if the mailing address is correct or was changed, the physical address of the business must have been updated, as well. It is usually an incorrect or old physical address which causes this to occur.

The effect of this termination includes:

    1. You are prohibited from reapplying to Medicare for at least two (2) years.
    2. You may have to pay back any monies received from the Medicare Program since the effective date of the termination (often many months prior to the notification letter).
    3. Other auditing agents may be notified such as the Medicare Zone Program Integrity Contractors (ZPIC) and the state Medicare Fraud Control Unit (MFCU).
    4. You may no longer contract with Medicare or anyone who does.
    5. You may and probably will be terminated from the approved provider panels of health insurance companies with which you are currently contracted.
    6. You may and probably will be terminated from skilled nursing facilities (SNFs) and home health agencies (HHAs) with which you have contracts.
    7. You may and probably will have your clinical privileges terminated by hospitals or ambulatory surgical centers (ASCs) where you have them.

What you should not do includes:

  1. Don’t bother to write letters.
  2. Don’t bother to call the Centers for Medicare & Medicaid Services (CMS).
  3. Don’t bother to call the Medicare Administrative Contractor (or MAC) (previously called the “carrier” or “fiscal intermediary”).
  4. Don’t bother to file a new CMS Form 855 (application) or a CMS Form 855C (change).
  5. Don’t bother to start communicating with CMS or the MAC about your situation and what you need to do about it.
  6. Don’t bother to complete and file the short, one-page Corrective Action Plan (CAP) form that is on the CMS or Carrier/MAC website (unless you are close to the deadline and don’t have representation; then you must.)


What we recommend is:

  1. Immediately go into the Medicare Provider Enrollment, Chain and Ownership System (PECOS) and the National Plan & Provider Enumeration System (NPPES) NPI Registry and print out a copy of the existing information. Then update or correct any incorrect information on you or your company, if you can. Print out the information as it existed before and print out the information after you have corrected it. (Note: Medicare will act shortly after the letter to you to terminate your access to this, so it may be too late).
  2. Hire an experienced health attorney immediately to assist you in putting together and submitting a comprehensive Corrective Action Plan (CAP), a Request for Reconsideration (RFR) and a request for an Appeal Hearing.
  3. Note that there is a thirty (30) day deadline for submitting the CAP and a sixty (60) day deadline for requesting an appeal hearing. Do not miss these.
  4. Implement formal, written internal policies and procedures to prevent a recurrence of the type of error, oversight or event that caused the termination. Train your management and staff on these.


The CAP should address every element of the applicable conditions of participation (COP) contained in the Code of Federal Regulations (CFR). It should include and be supported by all relevant documents, including but not limited to:

  1. Documents showing how the error occurred or past efforts to comply.
  2. Surety bond guarantees and documents (where required).
  3. Insurance coverage documents showing current coverage (general liability, professional liability, vehicle/auto liability).
  4. Current licenses and permits.
  5. Certificates of good standing and latest annual reports for any corporation or limited liability company.
  6. Print-outs from PECOS/NPPES Registry discussed above.
  7. Accident reports, insurance claims, police reports, fire reports or other documentation showing why a relocation was required (if this was an issue).
  8. Certificates of compliance training for you and your staff, if available.
  9. Copies of policies and procedures that you have adopted to keep there from being a recurrence of the situation that led to the termination.
  10. An authorization form for your consultant or attorney to represent you in the matter.


All copies should be clear, legible, complete, straight, no corners cut off an no handwriting on them, to the greatest extent possible.


Everything should be professionally assembled, typed, indexed and labeled. It should include a table of contents or an index. Number every page. It should be submitted to the MAC (or the agency/address given in the termination letter) by two (2) reliable means that document both sending and receipt. Keep copies of everything, including postal receipts, airbills, Federal Express labels, courier receipts, etc. It must be received at the address given in the termination letter you received (usually MAC) by the deadline given above. Keep copies of online tracking reports and return receipts.

In most instances, should you show a legitimate reason for the error, show you are currently in compliance, and show what remedial measures you have taken to keep there from being a repeat, the MAC will accept your corrective action plan (CAP) and will reinstate your Medicare number, as things stand currently.