CMS Issues Clarification Regarding “Incident To” Services

Written and Reviewed by Reed Tinsley | May 16, 2008

From the Vinson Elkins law firm (www.velaw.com):

On May 2, 2008, in response to multiple inquiries, CMS issued a set of clarifying instructions regarding policies for services furnished incident to a physician or non-physician practitioner (NPP) service in the office setting. The clarifying instructions, issued in Change Request 5288, amend and add new material to Chapter 15 of the Medicare Benefit Policy Manual. Among the key points set forth in the clarification include:

  • When contractors are aware that a service is furnished by staff other than the supervising physician/NPP, contractors will not make payment for the service as “incident to” the physician/NPP service unless there is documentation in the medical record authorizing the service.
  • The medical record must also contain the name and professional identities of the persons who furnished the incident to services.
  • Contractors will apply the policies for incident to services furnished in the office setting only to services furnished in the identifiable boundary of an office or a single room.
  • When services are provided outside the office, e.g., in the home or in the SNF outside the boundaries of an office suite, the supervising physician or NPP must be in the same room as the patient and the staff furnishing the incident to service, providing the equivalent of personal supervision.

The full manual update can be found on the CMS website here. A provider education article can be found in the MLN Matters section of the CMS website here.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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