Managing H1N1 Employment and Leave Issues

With cases of the H1N1 Virus continuing to increase, employers' concerns about the H1N1 virus and seasonal flu are mounting.  Employers are facing workplace and leave issues and many are developing written H1N1 and contagious disease policies to help minimize the negative effects an influenza outbreak could have on their business. Anticipating many questions from employers, the Centers for Disease Control released Guidance for Businesses and Employers to Plan and Respond to the 2009-2010 Flu Season.

The H1N1 virus and other contagious diseases present a multitude of legal issues. Employers should begin to take proactive measures in anticipation of H1N1 or other temporary contagious diseases and pandemics such as:

  • Conduct a comprehensive review of employment policies, particularly those that pertain to employee leave, sick leave, paid time off and/or unpaid leave. 
  • Consider implementing policies such as an Influenza in the Work Place Policy, a Contagious Temporary Disease Policy, a Quarantine Policy and/or a Communicable Disease Policy. 
  • Develop and review with employees a best practices policy to avoid the spread of contagious diseases, such as H1N1.
  • Consider if it is necessary to mandate that employees, particularly in the health care field, provide proof of H1N1 vaccination for the 2009-2010 influenza season.

Perhaps the most important issue is ensuring that the employer is compliant with the Family Medical Leave Act when responding to an employee who has exhausted their paid leave and requests FMLA leave for an H1N1 illness. Employers need to be aware of and recognize that, in some cases, the H1N1 virus may be sufficiently serious to qualify for FMLA leave. Employers that have a blanket policy declaring H1N1 or other influenza illnesses as not qualifying for FMLA leave may be putting themselves at risk. 

As always, if you have any questions regarding this or any issues involving employment or labor matters, please contact Albert S. Lee at 412.594.5611 or alee@tuckerlaw.com, Katherine E. Koop, at 412.594.5508 or kkoop@tuckerlaw.com or any of the other Labor and Employment attorneys at Tucker Arensberg. 

The Labor & Employment Law Group at Tucker Arensberg, P.C. has a diverse client base of private and public employers. Some of the services offered by the Labor & Employment Law Group include advising employers on discharge and discipline of employees, unemployment compensation, wage and hour employment and separation/severance agreements, non-competition and confidentiality clauses, employment litigation, etc.

MGMA Comments to Baucus Proposed America's Healthy Future Act of 2009

 http://www.magnetmail.net/actions/email_web_version.cfm?recipient_id=89011577&message_id=825692&user_id=MGMA

Medical Staff Joint Commission Standards: MS.01.01.01 is the New MS.1.20

The Joint Commission has released a revised draft of Hospital Accreditation Standard MS.1.20, which was first proposed in June 2007 and intended to establish a balance of power between hospital administration and hospital medical staffs. Although originally scheduled to become effective January 1, 2009, the controversy and uproar accompanying the proposals in 2007 were so vehement that the Joint Commission withdrew MS.1.20, appointed a task force to review the concept, and replaced it with MS.01.01.01. The Allegheny County Medical Society published an article describing the development of MS.1.20 in its September 2008 Bulletin (“MS.1.20: Opportunity to Restore Medical Staff Governance and Establish Neutral Peer Review,” p. 424, available at www.acms.org). You can view a complete copy of the MS.01.01.01 working draft at www.medlawblog.com.

Now, MS.01.01.01 will replace MS.1.20 in attempting to establish this balance of power by proposing specific performance criteria for hospital medical staffs in three areas:

1.         medical staff bylaw’s content and approval process;

2.         medical staff governance; and

3.         credentialing, peer review and due process.

From a practical viewpoint, MS.01.01.01 is not drastically different from MS.1.20; some have said that the most significant change is the name. The purpose of this article is not to discuss the fine points of MS.01.01.01, but to remind and emphasize to physicians and medical staffs that the bylaw amendment process created by this new standard will require virtually every hospital to revisit and probably revise medical staff bylaws and procedures, and will therefore present a unique opportunity for physicians to define the purpose and authority of the organized medical staff. Some will view this as an opportunity to reestablish the intended function of medical staffs, while others may view this as the same opportunity to further concentrate the authority within hospital administration.

The structure of MS.01.01.01 is very similar to the structure of MS.1.20 and continues to operate in the three critical areas listed above.

Medical Staff Bylaws

The standard will define the composition of medical staff, the voting members of the medical staff and quorum requirements. The standard will require a process that prohibits unilateral amendment of the medical staff bylaws by either the medical staff or the hospital governing body. This process, which prohibits unilateral amendments, will make it absolutely crucial that the physicians “get it right now,” because future changes will not be possible without mutual agreement. This is your chance to define the playing field if, in fact, you believe it has become tilted.

Medical Staff Governance

Based largely on complaints from organized medicine, the Joint Commission perceives that existing governance structures concentrated too much power with the hospital administration and the Medical Executive Committee (MEC), creating entrenched physician leadership appointed by the hospital, either through employment or appointment to medical staff positions that—by definition in the bylaws—were members of the MEC. In fairness, I must note that some observers attribute this entrenchment less to the design of hospital administration and more to that law of nature stating that nature abhors a vacuum, with hospital affiliated physician leadership filling the void created by the apathy of the independent members of the medical staff. The standard will now mandate a process which:

(a)        defines the composition and authority of the MEC,

(b)        provides an avenue of direct access for the medical staff to the governing body when medical staff initiatives are blocked by the MEC, and

(c)        provides an agreed process for the election and removal of officers.

Credentialing and Due Process

Both MS.1.20 and MS.01.01.01 require a credentialing and fair hearing process in which the due process requirements are contained in the bylaws; that means they are subject to the “no unilateral amendment” restriction. The bylaws must contain standards for:
(a) appointment and reappointment of medical staff membership and clinical privileges, (b) suspension of clinical privileges and memberships, (c) the process for both investigation and fair hearings, and (d) the composition of the hearing committee.

Regardless of the detail and complexity of the fair hearing process, the most serious criticism of the investigation and hearing process is that, once started, it is a stacked deck against the target physician because of the rules of confidentiality that are perceived to comply to the investigative and the hearing processes. Setting aside the argument of whether state law provides the level of confidentiality often asserted by the hospitals, you must decide now whether that process will be codified in the medical staff bylaws.

As I suggested in the September 2008 article, I think the key to assuring fairness in the fair hearing process is not to seek to better or more rigidly defined rules, but to provide a system that assures fairness. I suggest that fairness is assured, not by rules, but by truth. I think it is a valid presumption that secret agendas, politics and personal grudges will be eliminated when the investigation and fair hearing are conducted in a transparent manner. I further believe that the best way to assure the transparency of the process is to both define the composition of the investigative and fair hearing committees and to allow the target physician to appoint either a voting member or an observer to those committees. This sole physician representative, whether voting or nonvoting, will not have the voting power to dictate the outcome of either the investigation or the fair hearing, but the physician representative will serve as a witness to the fairness of the process.

Conclusion

The American Medical Association (AMA) is represented on the Joint Commission MS.01.01.0 Task Force and is both reportedly and apparently in general agreement with the new standards. Assuming MS.01.01.01 is implemented substantially as proposed, physicians should actively participate in this unique opportunity to revisit medical staff structures in the hospitals at which they practice.

DMEPOS Accreditation Required September 30, 2009

The Centers for Medicare & Medicaid Services (CMS) reminds Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) suppliers enrolled with the National Supplier Clearinghouse (NSC) they are required to obtain accreditation by September 30, 2009. Without accreditation, DMEPOS suppliers' billing privileges will be revoked on or after October 1, 2009. Further, without accreditation, DMEPOS suppliers will not be eligible to participate in the Route 1 Rebid of the Medicare DMEPOS competitive bidding program.

http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0925.pdf

NYT Reports 564 Amendments to Baucus Bill Already

Please click here to read the article.

Employee Benefits Law Alert - "Summary Prospectus" Now May be Used

 

"Summary Prospectus" Now May Be Used

Under ERISA Section 404(c) in Lieu of Statutory Prospectus 

On September 8, 2009, the U.S. Department of Labor (the “DOL”) issued Field Assistance Bulletin 2009-03. This guidance states that a fiduciary may continue to satisfy ERISA Section 404(c)’s requirements by providing a mutual fund’s “summary prospectus” rather than the fund’s statutory prospectus. 

ERISA §404(c) protects fiduciaries from any loss that is the direct result of a participant’s investment decision. To receive protection, however, a fiduciary must meet several requirements. One broad requirement is that a participant or beneficiary must have access to sufficient information to make informed decisions with regard to the plan’s investment options. Prior to the DOL’s recent Field Assistance Bulletin, a mutual fund’s statutory prospectus had to be provided to participants in order to meet part of this requirement. 

However, in January of 2009, the Securities and Exchange Commission (the “SEC”) published a rule allowing a mutual fund to use a “summary prospectus” as an optional way of satisfying of it’s obligation to issue a statutory prospectus. In general, a summary prospectus is more streamlined and shorter than a statutory prospectus. In response to the SEC rule, the DOL issued guidance on September 8, 2009, in the form of the Field Assistance Bulletin 2009-03. The DOL made clear that a mutual fund’s summary prospectus may now be used to meet ERISA Section 404(c)’s requirements.  

If you have any questions, please contact Jonathan I. Grossman at 412.594.5574 or jgrossman@tuckerlaw.com.

******

Employee Benefits Law Group: The  Employee Benefits Law Group at Tucker Arensberg, P.C. has a diverse client base of private and public employers.  We are dedicated to working with our clients to resolve complicated legal issues in a practical, common-sense and cost-efficient manner.  In doing so, we routinely work with our clients to design, establish, implement, administer, and terminate many different types of employee benefit plans. Refer to http://www.tuckerlaw.com/practice/employee.html for more information on the Employee Benefits Law Group.

TAX ADVICE DISCLAIMER: Any federal tax advice contained in this communication (including attachments) was not intended or written to be used, and it cannot be used, by you for the purpose of (1) avoiding any penalty that may be imposed by the Internal Revenue Service or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein. If you would like such advice, please contact us.

MGMA Identifies Key Physician Healthcare Reform Issues In Baucus Bill

 

  • Replacing the scheduled 21.5 percent reduction in 2010 Medicare physician payments with a 0.5 percent increase;
  • Requiring that all eligible health professionals participate in Medicare’s Physician Quality Reporting Initiative by 2011;
  • Creating a 10 percent bonus payment for primary-care and general-surgery providers who practice in health professional shortage areas. Funding for this five-year bonus, to start in 2011, is offset by reducing payments for all other services;
  • Establishing the CMS Innovation Center, which would be required to test and evaluate patient-centered delivery and payment models, including payment incentives for physicians if they are deemed to appropriately order high-cost imaging services. The center would be exempt from budget-neutrality requirements for an initial testing period and would be required to consult outside experts and stakeholders;
  • Increasing the imaging utilization rate assumption for advanced imaging equipment from 50 percent to 65 percent for 2010 through 2013, which will result in lower practice-expense payments for the technical component of services using this equipment;
  • Creating a nonelected Medicare Commission to develop and submit proposals to Congress that extend Medicare solvency;
  • Simplifying healthcare administration by "accelerating the development, adoption and implementation of standard, consensus-based operating rules for four HIPAA* transactions: eligibility verification, claims status, payment/electronic funds transfer and remittance advice";
  • Expanding the Medicare physician feedback program in 2012 and, beginning in 2015, reduce payment by 5 percent if an aggregation of a physician’s resource use is at or above the 90th percentile of national utilization;
  • Allowing groups of providers, beginning 2012, to form accountable care organizations, improve quality of care and share in half of the savings achieved over a three-year period;
  • Requiring all individuals to obtain health insurance by 2013;
  • Requiring all employers with more than 50 full-time employees to pay a fee if they don’t offer health insurance, beginning in 2013;
  • Creating, no later than 2012 and expiring at the end of 2015, the Consumer Operated and Oriented Plan (CO-OP), comprising "nonprofit, member-run health insurance companies";
  • Establishing state-based health insurance exchanges beginning in 2010; and
  • Providing assistance to Medicare Part D beneficiaries when they reach the "doughnut hole" in benefit coverage

Senate Finance Committee Chairman Introduces Health Reform Bill

Senate Finance Committee Chairman Max Baucus (D-MT) has introduced the America's Healthy Future Act of 2009. It is scheduled for a full Committee markup on September 22, where Democrats hope to obtain more Republican support.

The bill offers initiatives that will help all Americans meet the requirement of having health coverage, such as the expansion of Medicaid and the creation of state co-operatives to provide consumers with options outside of private insurers. Employers would not be required to provide coverage to workers; however, employers who have 50 or more workers and do not offer coverage by 2013 will have to reimburse the government for every full-time worker receiving tax benefits through the government's health care exchange system.

The $856 billion to fund coverage will be obtained through initiatives such as reductions in Medicare and Medicaid spending; taxes on insurers offering high-cost, high-premium health plans; and fees on providers such as device manufacturers.

The bill offers various changes to the Medicare and Medicaid systems that are intended to increase efficiency, lower costs, and maintain a level of quality and care.

Health Care Quality Improvements

The bill directs the Secretary of Health and Human Services (HHS) to create a national strategic plan for improving the quality of care. The strategy will focus on goals such as reducing medical errors, maintaining hospital infection-control, addressing preventable hospital admissions, and an overall look at increasing efficiency and quality in the healthcare system.

In order to prioritize these strategies, the Secretary of HHS will seek the input of various stakeholders in the healthcare system including representatives of hospitals, physicians, credentialing and accrediting bodies, allied health professions, health plans, and other industries.


A copy of the Chairman's mark-up can be found here.

Source: NAMSS Blog
 

The Controversial E-Verify System

As of September 8, 2009, all federal contractors and subcontractors are now required to utilize the controversial E-Verify system to confirm an employees right to work legally in the United States.  In addition, those companies receiving stimulus funds will be required to implement E-Verify.  The controversy arises from the fact that the administration continues to expand the use of E-Verify without correcting the defects in the database system.  There is a belief that this faulty system will lead to discrimination against US workers who are perceived to be foreign born.  Please see the following Federal resources for guidance on E-Verify.

 
E-Verify User Manual (Click here to Download file
 
If you have any questions on E-Verify or I-9 Compliance, please do not hesitate to contact Piyush Seth for further information at 412-594-5640.

 

 

Medicare Consignment Closet Changes Delayed Until March 1, 2010

The new consignment closet billing and compliance rules reported in the Med Law Blog on August 17, 2009 and intended to be effective on September 8, 2009 have been delayed until March 1, 2010 by Transmittal 300

State Courts Continue to Limit Confidentiality of Peer Review Records

The Massachusetts Supreme Court ruled in Board of Registration in Medicine v. Hallmark Health Corp. that the Massachusetts licensing board would subpoena certain hospitals peer review records. 

In Director of Health Affairs Policy Planning, University of Connecticut v. Freedom of Information Commission, the Connecticut Supreme Court ruled that the state's freedom of information act contradicted the state's peer review confidentiality act and compelled disclosure of peer review records, although introduction into evidence in civil proceedings would still be prohibited. The court explicitly acknowledged that the decision could chill the operation of peer review proceedings, but stated the holding was compelled by the plain language of the statutes. Note that the holding applies only to government entities. 

Covenant Medical Center to Pay U.S. $4.5 Million to Resolve False Claims Act and Stark Law Allegations

The U.S. Department of Justice issued a press release on August 25, 2009 announcing a $4.5 million False Claims Act Settlement against an Iowa hospital, Covenant Medical Center. The False Claims Act liability allegations were based upon charges by the Attorney General that paying excessive compensation violated the Stark Law.

Based upon IRS 990 forms, the 5 highest paid physicians made between $635,000 to $2.1 million dollars. Two orthopedic surgeons made $2.1 million and $1 million in 2002, and a gastroenterologist was also paid $2.1 million.

Note the action was settled by the hospital, for making false claims for billing prohibited by the Stark Law.