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Government Affairs Home > Teaching Physicians > Teaching Physician Regulations

Teaching Physician Payment Regulations Under the Medicare Part B Program; Billing for the Services of Resident and Fellows in Their Own Name

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Background

The final rule for teaching physicians has been in effect since July 1, 1996. Periodic clarifications of the rule have been issued by HCFA in addition to the final Carrier Manual Instructions.

The Medicare program's final rule for teaching physicians replaced Intermediary Letter 372 Guidelines (IL-372) that were in effect for nearly 30 years. IL-372 specified the requirements for billing by teaching physicians when these services involved residents. The criteria for billing expressed in IL-372 were ambiguous and not well communicated by the Health Care Financing Administration (HCFA) and its local carriers relative to the requirements for the physical presence of the supervising teaching physician for visit and consultation services. However, the guidelines did specify the need for the presence of the teaching physician during major and complex surgical procedures. The AAMC considers the 1996 final rule to be new policy with a new set of requirements that are substantially different from the payment policy for teaching physicians expressed in IL-372 Guidelines. (A complete summary of the final rule is contained in a presidential memo #95-68, issued December 16, 1995 and additional clarifications issued on October 25, 1996, February 3, 1997, and February 9, 1998.)

The general rule, effective July 1, 1996, is as follows:

If a resident (or fellow) participates in a service furnished in a teaching setting, a Part B payment will be allowed only if the teaching physician is present to perform or observe the resident perform, the "key" portion of any service or procedure for which payment is sought. Each individual physician may determine the "key" portion of any service or procedure furnished. The "key" portion for a visit or consultation service is defined in CPT as including the activities of history, physical exam and medical decision-making. The "key" portion for a surgical or diagnostic procedure is self-defined by the physician.

The rule provides for an exception to the general physical presence requirement for low level visit services provided in certain primary care outpatient centers by residents being trained in the specialties of general internal medicine, family practice, gerontology, OBGYN and pediatrics.

Documentation Requirements

The teaching physician has special documentation instructions under the final rule. The teaching physician may substantiate any service billed to the Medicare program by writing or dictating a summary note of the services performed personally or directly observed. The teaching physician's note may be a summary note that confirms or revises the history of present illness, the exam, and the medical decision making activities, combined with the more detailed note of the resident. (See AAMC templates on how to structure an appropriate note for EM services.) For other services, such as a single surgical procedure and diagnostic tests, a simple attestation of physical presence of the teaching physician during the key portion of the procedure or test is all that is required. For overlapping, concurrent surgical procedures performed or observed by the teaching physician, however, he/she must provide a patient-specific personal note of the procedures billed.

Billing for the Services of Residents and Clinical Fellows "In Their Own Name"

The rule also addresses the circumstances for when it is appropriate to bill for the services of residents and clinical fellows "in their own name". A resident or fellow may bill for services they perform in their own name in only two situations: 1) when under in a moonlighting situation; and 2) if providing service in an unapproved training program, that is a program not approved by the ACGME or the ABMS.

(For complete details on these issues, link to the final Carrier Manual Instructions, issued May 1997 and the AAMC Memo #96-12 on the Billing for the Services of Clinical Fellows, issued March 10, 1996. For the complete text of the HCFA final rule for teaching physicians, see the Federal Register, volume 60, December 8, 1995 in text format and PDF format).

Administration Action

Various clarifications have been issued by HCFA since the final rule was published.

AAMC Action

AAMC staff have worked continuously to clarify the provisions of the final rule. These have been communicated to the membership via the internet and presidential memos.

Contacts

Denise Dodero, Associate Vice President
AAMC Health Care Affairs
ddodero@aamc.org
(202) 828-0493

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