NJSPS Monthly Newsletter
April, 2009

 

From the President
From the Statehouse
From the Legal Counsel
Important Grassroots Call to Action
 


FROM THE PRESIDENT...Hakan M. Kutlu, MD

Dear Friends & Colleagues:

It’s incredible how time flies (…a sure sign of age, no doubt) but a year has passed since our last annual meeting and my term draws to a close.  I look back upon this year and see a number of significant improvements which were made within the NJSPS. 

One of the biggest changes and driving factors in these improvements was our change in management… the added energy, enthusiasm and professionalism of B. Lynch Associates has taken our society “to the next level”.  We are much more actively involved with the NJ political scene and have our fingers on the pulse of the events so that we can not only react to proposed legislation but can be more proactive.  The planned formation of our political action committee will also aid in this endeavor. 

We have become more communicative with our members through this monthly newsletter that you are currently reading and have updated our website to be more interactive and provide useful, current information.  We have also offered top notch speakers from our specialty over the past year including Drs. Spinelli, Matarasso, Constantian, Young and Eaves and look forward to seeing Drs. Hall-Findley and Krizek on April 4th. 

One of our own – Rick D’Amico – just completed his term as ASPS president further adding to the standing of our state society. 

Our fiscal standing is stable and we look forward to having continued vendor support at our meetings as well as expanding our membership rolls with new members. 

I believe our state society is stronger and more relevant to its members than ever… I look forward to continuing to work with our incoming president Greg Borah in the future and thank the many members of the executive committee for their support over this past year.

2009 ANNUAL MEETING --- Saturday, April 4th

Elizabeth Hall - Findlay, MD, FRCSC from Banff Plastic Surgery will present two great talks:

1. Anatomy and Breast Aesthetics - Surgical Planning Principles
2. Breast Reduction Using the Medial Technique 

Thomas Krizek, MD from the University of South Florida will be the LoVerme Lecturer.

Don't Miss Out...Full brochure on www.njsocietyofplasticsurg.org

ALSO:  Concurrent program for clinical/administrative staff.

From the Statehouse...Beverly J. Lynch

The Legislature has recessed for its traditional budget break, and will reconvene in May. The only activity during the month of April will be conducted by the Senate and Assembly Budget Committees who will hear from all the Commissioners as they present their Department’s budgets.

During the month of March, I continued work on the patient safety legislation. You may recall, from past newsletters, that we testified on the Senate version, S-2471, in the Senate Health Committee. During that testimony, we voiced numerous concerns, particularly with the provision that prohibits payment to physicians who admit they caused one of the designated hospital-acquired conditions.

The Senate version was released from committee, and was poised for a full Senate vote. At the last minute, it was remanded back to the Senate Health Committee and, on March 10, and further amended to:

  1. add discoverability protection; and

  2. establish a collaboration between the Commissioners of Health and Senior Services and Banking and Insurance and the Director of the Division of Consumer Affairs in the Department of Law and Public Safety to develop standards for health care providers and third party payers to implement the billing prohibition provisions.

Following adoption of these additional amendments, S-2471 passed the full Senate on March 16, 38 to 0.

On March 9, the Assembly Health Committee had a “for discussion only” hearing on the measure on its version, A-3633. I have excerpted my testimony below which I delivered on the bill:

Thank you for the opportunity to speak on A-3633.

First, we're confused as to why the physicians were only recently included in the discussions -- that apparently took place over the course of a year - as this measure was drafted.

This is a major piece of legislation – with new standards not found in any other state in the nation – and far reaching negative implications for the medical community and the patients they serve.

We urge you to move slowly and deliberately as the bill progresses -- to make sure the intent of the legislators is in fact what the bill says.

We are very familiar with the Centers for Medicare and Medicaid Services and the work at the federal level to limit or eliminate payment to hospitals and physicians for so-called “never events” and hospital acquired conditions.

Our colleagues at the national level have been at the table with CMS working on these provisions.

There are currently three “never events” for which physicians are not paid for their Medicaid and Medicare patients. These include surgery on the wrong patient, wrong body part or wrong site.

We have no argument at all that these “never events” should rightly penalize the physician.

This bill seeks to expand this penalty – in the form of non-payment – to 8 other “hospital acquired conditions” currently found on the CMS list. Things like “falls and trauma” and “catheter-associated infections.”

The problem we have with this penalty is that it’s very difficult to attribute these “conditions” to the attending physician.

Physician payment for conditions outside the three “never events” is an area that is being explored by CMS and others, but it is not ready for prime time.

Physicians regularly attend “morbidity and mortality” conferences, usually weekly, where each physician discusses complications on his or her patients, most of which are inevitable. In effect he “admits” on many patients having had a part in the evolution of events that include the complication. Currently, the proceedings of M&M conferences are legally protected information. We are gravely concerned over how this bill will impact frank discussions of complications and adverse events after surgical procedures – which is a common and necessary part of good quality improvement in all hospitals.

Physician attribution is very difficult to assess in a hospital setting where so many staff have hands on responsibilities with the patient.

When this bill was heard in the Senate, the Senate Health Committee approved amendments that establish that physician will not be penalized unless he or she admits that the fault was theirs.

Does this bill impact physicians who are 100% responsible for the adverse event? What if he or she is only 10% at fault – and the hospital or staff is 90% at fault?

What about the ancillary physician support? If an orthopaedic surgeon admits to being 100% at fault for a fall following surgery, is the anesthesiologist or radiologist reimbursement affected?

This bill would not only prohibit payment to the attending physician who “caused” the hospital-acquired condition, it would also expand the non-payment to the private sector payers – not just Medicaid and Medicare.

This is also precedent setting legislation found no where else in the country.

We can’t give the private carriers -- who are already eager to find any reason to delay or halt physician payment – any new excuse to do so.

I know you agree that we need not penalize those who treat the most vulnerable, with the least access to preventive care.

And of course, we all know that the trial lawyers will be chomping to get their hands on any reporting so they can swoop in with med mal lawsuits. We understand there are amendments being prepared that provide safeguards on the discoverability of the reporting….this is critical so it doesn’t further exacerbate New Jersey’s tenuous medical liability environment.

We respectfully request that you continue to work with us on this important legislation to ensure that the “patient safety” legislation truly improves the care of patients. In its current form, we disagree.

Chairman Herbert Conaway, MD, and the members of his committee listened intently to the various testimony, and appeared, through their verbal responses and questions, to agree with many of the concerns we addressed. No official action on the bill was conducted. We will continue to work on this issue as the session continues.

Stay tuned.

Legal Report...Kern Augustine Conroy & Schoppmann, P.C.

Governor Corzine Signs Legislation Amending Facilities Licensing Law and Codey Law

Governor Jon Corzine today signed into law Senate Substitute for S787 (S787). The new law requires immediate attention by one-room surgical practices, existing licensed ambulatory surgery centers, and those planning to open a surgical center. The law contains important timeframes governing the ability to offer or continue to offer ambulatory surgery services.

The law revises the States Health Care Facilities Licensing law to require that single operating-room surgical practices that are operational as of today become registered with the Department of Health & Senior Services (DHSS) within one year of today, which means the deadline for registration is March 23, 2010. Registration must be renewed annually thereafter. A surgical practice that has not commenced operations as of today but which, no later than September 19, 2009, files its plans, specifications, and required documents with the municipality in which it will be located, must register with DHSS prior to commencing services.

The law prohibits DHSS, as of today, from issuing new registrations to surgical practices and new licenses to ASCs, with certain exceptions, including a surgical practice that is required to be registered and meets the laws registration requirements and timeframes set forth above.
The prohibition on new registrations does not apply to a transfer of ownership of an existing surgical practice if DHSS approves the qualification of the new owner(s) and approves the transfer. Exemption is also made in the case of a surgical practice which relocates the surgical practice, the relocation is within 20 miles of the surgical practices current location (or is a relocation to a Health Enterprise Zone), there is no expansion in the scope of services provided at the new location from that of the current location, and DHSS approves the relocation. Note that ASCs are subject to a similar licensure ban and exemptions, except that a new ASC that is owned by a hospital or a medical school or is owned jointly by a hospital and one or more other parties is exempt from the licensure ban.

S787 requires that all surgical practices, as a condition of registration, obtain certification from CMS as an ambulatory surgery center provider or accreditation from an accrediting body recognized by CMS. Thus, that process must be commenced immediately for those facilities that do not have one of the required credentials. Currently, there are four CMS approved national accreditation organizations for ASCs: the Joint Commission http://www.jointcommission.org/, the American Association for Accreditation of Ambulatory Surgery Facilities http://www.aaaasf.org/, the Accreditation Association for Ambulatory Health Care http://www.aaahc.org/, and the Healthcare Facilities Accreditation Program of the American Osteopathic Association http://www.hfap.org/.

All currently licensed ASCs also are required to obtain accreditation from a CMS-recognized accrediting body as a condition of DHSS licensure. Those facilities have until March 23, 2010, to comply with this requirement.

The DHSS is directed to issue regulations specifying the registration process for surgical practices and may charge a fee for the registration. S787 imposes specific reporting requirements for a registered surgical practice, including number of patients by payor, number of Medicaid-eligible and medically indigent patients, number of new patients accepted, and number of physicians, physician assistants, and advance practice nurses providing services at the surgical practice. The registrant must also submit the names and addresses of all owners of the surgical practice. Because surgical practices would be registered rather than licensed as an ambulatory care facility, they would not be subject to the states ambulatory care facility assessment (the gross receipts tax). What remains unclear with enactment of S787 is whether registration qualifies a surgical practice to bill a facility fee if it is accredited but not Medicare certified.

S787 provides that referrals to a registered surgical practice or licensed ASC by a physician owner are exempt from the states self-referral ban if the referring physician personally performs the procedure, remuneration to the physician owner is directly proportional to his or her ownership interest, all clinical decisions are made by practitioners (not by non-practitioner owners), and disclosure of financial interest is made to referred patients. Those requirements go into effect on the first day of the 12th month following today's enactment. In addition, the law provides that referrals made to a surgical practice or licensed ASC prior to today and those made during the twelve-month period after today are deemed to comply with the states self-referral law, but only if the referring practitioner personally performed the procedure and the surgical practice meets the definition of a surgical practice. The laws existing self-referral exemption for lithotripsy services and radiation therapy pursuant to an oncological protocol will now end except for those already holding a financial interest in such services as of today or who acquire such an interest by the first day of the twelfth month after enactment.

Persons with questions about the new law should contact Bob Conroy, at Kern Augustine Conroy & Schoppmann, P.C., 908-704-8585.

IMPORTANT Grassroots CALL TO ACTION

YOUR ACTION NEEDED NOW TO SAVE CRITICAL CLEFT FUNDING

Issue

The proposed FY 2010 NJ State budget includes a significant cut to the funding of cleft palate surgery.

Background

Since 1979, the State has worked with the New Jersey Federation of Cleft Craniofacial Programs provide services to children with special needs in a family centered, comprehensive and coordinated fashion. In the late 1980s, the Legislature and the NJ Department of Health and Human Services added a line item specific to cleft-craniofacial care in the state budget. Without that line item, the type of care provided to the children of New Jersey would be non-existent. The current line item is $707,000 and it is facing a proposed reduction of $36,000 for FY2010.

Action Needed

Your calls and emails are needed immediately to stop this critical budget cut. We are not asking for additional funds (even though the funding hasn’t been increased in years!). In light of the state’s fiscal situation, we are only asking that the funding be maintained.

Email or call today!

And the members of the Assembly Budget Committee

Assemblyman Louis D. Greenwald (D6) — Chair, AsmGreenwald@njleg.org; 856-435-1247
Assemblyman Gary S. Schaer (D36) — Vice Chair, AsmSchaer@njleg.org; 973-249-3665
Assemblyman John J. Burzichelli (D3); AsmBurzichelli@njleg.org; 856-251-9801
Assemblyman Joseph Cryan (D20); AsmCryan@njleg.org; 908-624-0880
Assemblyman Gordon M. Johnson (D37); AsmJohnson@njleg.org; 201-541-1118
Assemblywoman Nelida "Nellie" Pou (D35); AswPou@njleg.org; 973-247-1555
Assemblywoman Joan M. Quigley (D32); AswQuigley@njleg.org; 201-217-4614
Assemblyman Joseph R. Malone, III (R30); AsmMalone@njleg.org; 609-298-6250
Assemblywoman Alison Littell McHose (R24); AswMcHose@njleg.org; 973-300-0200
Assemblyman Declan J. O'Scanlon (R12); AsmOScanlon@njleg.org; 732-933-1591

and the members of the Senate Budget and Appropriations Committee

Senator Barbara Buono (D18) — Chair, SenBuono@njleg.org; 732-205-1372
Senator Paul A. Sarlo (D36) — Vice Chair, SenSarlo@njleg.org; 201-804-8118
Senator Stephen M. Sweeney (D3); SenSweeney@njleg.org; 856-251-9801
Senator Shirley K. Turner (D15); SenTurner@njleg.org; 609-530-3277
Senator M. Teresa Ruiz (D29); SenRuiz@njleg.org; 973-484-1000
Senator Brian P. Stack (D33); SenStack@njleg.org; 201-330-3233
Senator Joseph F. Vitale (D19); SenVitale@njleg.org; 732-855-7441
Senator Sandra B. Cunningham (D31); SenCunningham@njleg.org; 201-451-5100
Senator Dana L. Redd (D5); SenRedd@njleg.org; 609-292-5215
Senator Anthony R. Bucco (R25); SenBucco@njleg.org; 973-627-9700
Senator Philip E. Haines (R8); SenHaines@njleg.org; 609-654-1498
Senator Steven V. Oroho (R24); SenOroho@njleg.org; 973-300-0200
Senator Kevin J. O'Toole (R40); SenOToole@njleg.org; 973-237-1360
Senator Joseph Pennacchio (R26); SenPennacchio@njleg.org; 973-984-0922
Senator Marcia A. Karrow (R23); SenKarrow@njleg.org; 908-782-5127

Suggested message points

  • As a New Jersey Plastic Surgeon – and on behalf of our patients throughout the State -- we ask you to restore the $36,000 proposed cuts to the cleft-craniofacial program line item in the FY 2010 budget.

  • This program is critically important to the children who are born with cleft lips and palates and other craniofacial deformities and would otherwise go untreated.

  • This is especially needed as we face decreased reimbursement levels from third party carriers and further reductions in the types of services we can provide.

  • The technology and surgical techniques available to children with clefts in today’s world is limitless and enables the majority of these individuals to become tax paying and functional members of society.

  • The continued financial support from the Adminstration and Legislature is needed to maintain the programs now serving the residents of New Jersey.

The Legislature and the Administration is in the middle of budget debate and are determining the fate of this program today! Please make your calls or send your emails now.

Questions? Call Beverly Lynch, NJSPS, at 609-392-7553 or email blynch@blynchassociates.com

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