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HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

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Page 1: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

HEALTHCARE TRUSTEES OF NEW

YORK STATECompliance and Governance

Update

August 8, 2012

Page 2: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Realities Renewed Federal Interest in Governance Health Reform Brings Governance

Challenges State Government’s Reach May Exceed Its

Grasp Board Oversight of Issues is Expanding

Page 3: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

A Few of the Issues Executive Compensation OMIG Compliance Guidance Recovery Audit Contractor (RAC) and

Other Audits Expanded Surveillance Focus – Quality Conflicts of Interest Increased IRS Scrutiny

Page 4: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Executive Compensation Executive Branch Process Limits on Reimbursement, Compensation

and Use of State Revenue Very Expansive Reach

“Covered Executive” Definition “Related Entity” Definition

Hospitals are Not Focus But are Covered

Page 5: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Aggressive Government Audits Carried Out by Contractors

Often Paid on Contingency Basis

RACs, MACs, ZPICs, CERTs, Comprehensive Medicare Compliance – To Name a Few

Very Burdensome Document Demands Clinical Judgment Calls

Page 6: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Government Audits (cont) All-or-Nothing Recoveries Hundreds of Millions of $$ At Issue Post-Payment Reviews Pre-Payment Reviews Lengthy Appeals Process Comprehensive Medicare Audits – OIG

Internal Controls Process from Patient to Claim Submission

Page 7: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Office of Medicaid Inspector General (OMIG) Compliance

OMIG Now Organized by Teams Hospital Compliance Guidance - May ’12 Compliance Audits Will Increase as

“Gotcha” Decreases Document Request Includes Board Minutes Expectation of Broad Board Oversight Directors Interviewed During Audit

Page 8: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Governance and Quality Increased Regulatory Focus on Quality

Oversight Prompted by Feds; Implemented by State Focus on Full Board Awareness

Reports to Board Committee May Be Inadequate

Dovetails with OMIG Compliance Program Expectations

Page 9: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Conflicts of Interest Doing Business with Hospital Trustee Joint Venturing State – Attorney General, Governor Federal – IRS, Fraud Agencies Board Minutes Should Reflect

Transparency

Page 10: HEALTHCARE TRUSTEES OF NEW YORK STATE Compliance and Governance Update August 8, 2012

Internal Revenue Service Proposed Rules – Community Benefit

Reports Providing Charity Care Not Enough

Mandatory Reporting of Financial Arrangements – Directors With Each Other & With the Facility