TITLE 1.ADMINISTRATION

Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 371. MEDICAID FRAUD AND ABUSE PROGRAM INTEGRITY

Subchapter C. UTILIZATION REVIEW

1 TAC §§371.212 - 371.214

The Texas Health and Human Services Commission (HHSC) adopts amendments to Chapter 371, Medicaid Fraud and Abuse Program Integrity, Subchapter C, §371.212, concerning the Case Mix Classification System, §371.213, concerning the authority for on-site utilization review activities, and §371.214, concerning Texas Index for Level of Effort (TILE) assessments with changes to the proposed text as published in the April 27, 2001, issue of the Texas Register (26 TexReg 3090).

The amended rules are adopted, in part, to implement the utilization review function assigned to HHSC by Senate Bill 30, enacted by the 75th Legislature in 1997. These rules reflect the transfer of authority from the Texas Department of Human Services (TDHS) to HHSC. These rules also reflect a new process for utilization review of Medicaid hospice recipients residing in nursing facilities as required by Code of Federal Regulations, Title 42, Part 455 (concerning Medicaid Program Integrity) and Part 456 (concerning Utilization Control), and by the Human Resources Code, Title 2, §32.032 (concerning Prevention and Detection of Fraud).

HHSC received comments from the following organizations: Texas Health Care Association; Texas Association of Homes and Services for the Aging, and Texas Department of Human Services.

General Comment: One commenter inquired whether HHSC intended to continue to perform quality of care reviews for all children residing in nursing facilities regardless of payment source.

Response: HHSC intends to continue the reviews of all children. The language regarding these reviews was removed from the proposed §371.214 to allow for further study by HHSC staff. The language has been reinserted in §371.213.

Comment: The commenter observed that the reference in proposed §371.212(2)(D) to Chapter IV of 42 CFR Part 455 might be confusing and recommended deleting the reference.

Response: HHSC agrees and will delete the reference to Chapter IV.

Comment: Two commenters questioned the phrase in §371.212(3)(B)(i)(II)(-a-) that states "a description of the event or illness and the recipient's functional status before and after the event must be documented by nursing staff in the individual's clinical record or care plan". They stated that they had understood the intent of this section to be that the physical therapist could document the change in patient status in the nursing section of the clinical record. It was recommended that this phrase be changed to "a description of the event or illness and the recipient's functional status before and after the event must be documented in the nurse's section of the clinical record and/or care plan.

Response: HHSC disagrees about the intent of this language. The intent was to ensure that the change in the recipient's functional status was noted by a discipline other than physical therapy. Since nursing staff is responsible for completion of the Client Assessment Review and Evaluation (CARE) form, it is expected that nursing staff will document their observations in the clinical record or care plan. Consequently, HHSC does not believe this reference should be revised.

Comment: Concerning §371.212(3)(B)(ii)(V)(-b-), one commenter felt that it was unclear as to who submits the written monthly review if services were supervised or delivered by a licensed therapist.

Response: HHSC agrees and has added "by the licensed therapist" to the end of the item.

Comment: Concerning §371.212(3)(B)(iii), which relates to recipients in the rehabilitative/restorative therapies group, one commenter noted an error in an internal reference. Specifically, they recommended that the references should be to clauses (i), (i)(IV) and (V), and (ii) of subparagraph (B).

Response: HHSC agrees and has added the suggested language.

Comment: Concerning §371.212(7), three commenters noted that deleting the phrase "acting director of nurses" from the list of persons who are required to sign the CARE form suggests that in the absence of the director of nursing, only the facility nurse assessor is required to sign the form. Two commenters noted that by deleting this person, HHSC contradicted information in the proposal preamble.

Response: HHSC agrees with and appreciates the comment. The phrase "acting director of nurses" has been reinserted.

Comment: Two commenters observed that in §371.212 (7), the hospice nurse assessor is required to sign the CARE form indicating that to the best of their knowledge, the information submitted is accurate, but that the rule does not require the hospice nurse assessor to complete TILE training in order to learn how to complete the CARE form. The commenters expressed concern that a licensed nurse would be required to attest to the accuracy of the form, but might not understand the clinical values utilized. The commenters recommended changing the phrase "one of whom has received TILE training" to "both of whom have received TILE training".

Response: HHSC disagrees based on the fact that hospice nurse assessors are encouraged to complete the training. No changes to language were made.

Comment: Two commenters noted that the language in §371.212(7) requires the electronic version of the form to be signed and maintained by the nursing facility. They point out that at a stakeholder's meeting held on April 19, 2001, a working draft of the 3652-A instructions stated, "Retain a copy with the appropriate signatures for the nursing facility clinical records." The commenters state that the language in the instructions is acceptable because it is not common practice for nursing facilities to maintain copies of the electronically transmitted forms with the required signatures.

Response: HHSC feels that the language in the proposed §371.212(7) reflects current practice. As of the end of April, approximately 90% of CARE forms reviewed by HHSC Utilization Review nurse reviewers contained the required signatures. Additionally, the DHS contract with the nursing facility requires that 3652 electronic forms with the appropriate signatures be maintained (Section II, K). HHSC agrees that the language in the 3652-A instructions was not as specific as the rule or contract language and intends to correct that oversight prior to printing the instructions. No changes were made to the rule as a result of this comment.

Comment: Two commenters noted that the requirement in §371.214(a) for the nursing facility and hospice nurse assessors to jointly assess hospice recipients who are residing in nursing facilities might delay completion of the form. The commenters were concerned that the two nurses might not be able to easily coordinate their schedules to allow simultaneous assessment of the hospice recipient. The commenters suggested substituting language from §371.212(7) that requires the hospice nurse to sign the form and removing the word "jointly" from the second sentence in §371.214.

Response: HHSC never intended for both nurses to complete the assessment at the same time. Both nurses must assess the hospice recipient, and both must sign the Form 3652-A attesting to the accuracy of the assessment. The suggested substitution language from §371.212(7) removes the hospice nurse assessor's requirement to assess the patient, and therefore is unacceptable. HHSC agrees that the word "jointly" implied a simultaneous assessment and has removed that word.

Comment: Two commenters requested that §371.214(b) be clarified to express that the "one-time 60-day waiver" can be utilized each time a new Director of Nurses (DON) is hired by deleting the wording "one-time."

Response: HHSC agrees that the waiver can be requested each time a new DON is hired if the new DON hasn't completed the TILE training. However, deleting the wording "one-time" would allow a new DON to request multiple 60-day waivers. HHSC feels that the proposed language adequately describes the acceptable practice and has made no revision to the rule language.

Comment: In reference to §371-214(c)(1), two commenters requested that the nursing facility be given five days pre-notification instead of the current two day pre-notification. The commenters stated that more time is needed to assure that items that have been thinned from the medical record can be retrieved and made available.

Response: HHSC disagrees. The two-day pre-notification is a minimum and is routinely exceeded. Additionally, there are multiple DHS Nursing Facility Requirements for Licensure and Medicaid Certification that require maintenance of the file and/or disallow thinning of pertinent information from the clinical record. These include 40 TAC §19.1910 pertaining to Clinical Records, §19.1912, relating to Additional Clinical Record Service Requirements, and §19.801, concerning the Resident Assessment. No changes were made to the rule as a result of this comment.

Comment: Two commenters noted that §371.214(c)(1) states that "For routine visits, nurse reviewers must be given prompt access to all information and resources necessary to conduct the TILE review." The commenters point out that it is unreasonable to expect that all information will be immediately accessible for all patients reviewed. They suggest that the nurse reviewers should only have one to two charts at any given time and ask that "all information" be changed to "information."

Response: HHSC agrees in part. It would be unreasonable to expect that the totality of information on every patient be available at the start of the review. It is HHSC's expectation that the reviewers will have as much information as possible at the start of the review and that all information be made available as soon as possible, but definitely before the end of the review. Providing the nurse reviewers with only two charts at a time would hinder the review process and is not acceptable. HHSC agrees that the word "all" may imply an unrealistic expectation and has deleted it from the rule.

Comment: Two commenters stated that §371.214(c)(1) is inconsistent with case law. Namely, the use of Default TILE 212 without the ability to reimburse the nursing facility for lost funds conflicts with the decision made in Texas Department of Human Services v. Christian Care Centers, Inc; 826 S.W.2d 715 (Tex.App. - Austin 1992). The commenters state that once the review has been performed that the TILE rate should be modified and the payment should be made retroactive back to the date that the Default TILE 212 was implemented.

Response: HHSC agrees and has modified §371.214(c)(1) to state that once the review has been performed and the facility has demonstrated that a higher TILE classification is medically necessary, the higher TILE will be paid retroactive to the date that the Default 212 was implemented.

Comment: Two commenters asked that §371.214(c)(2) be expanded to allow nurse reviewers to use staff interviews and nursing observation to play a part in discussions of errors in TILE levels. They point out that §371.212(2)(A) states that nurse reviewers can use staff interviews and nursing observation to assign activities of daily living (ADL) scores and recommend that language be changed to allow this practice. It was recommended that "staff interviews and nursing observation" be added to the third sentence in this section.

Response: HHSC agrees. Observations and interviews are primarily used for validation of TILE level and to ensure that the residents are in fact residing in the facility. Since the TILE review is retrospective, the clinical record will contain documentation regarding patient status that may not be consistent with their current status. In some situations, however, patient observation and interviews may assist with determining prior level of care. Therefore, the next to last sentence in this paragraph has been changed to "Additional documentation, staff interviews and nursing observation to support nursing facility resident and hospice recipient assessments may be presented at any time during the review process or the exit conference, and adjustments may be made."

Comment: Two commenters suggested that the language in §371.214(c)(2)(A) be changed to clarify that the payment and recoupment may be made to either or both the nursing facility or hospice provider.

Response: HHSC agrees and has changed "nursing facility and hospice provider" to "nursing facility and/or hospice provider" in both places in that subchapter.

Comment: One commenter noted that the phrase "this title" §371.214(c)(4) is incorrect because it refers to Title 1, not Title 40, which contains the rules that regulate TDHS contract appeals. They suggested changing the reference to Title 40.

Response: HHSC agrees and has corrected the reference.

Comment: Two commenters asked that the error rate be clarified in §371.214(d). The commenters suggested that the 20% error rate be defined as 20% of the total patients reviewed and that each Form 3652-A should be limited to one error when calculating the error rate.

Response: HHSC responds that the procedure for calculating the 20% error rate has always been based on the total patients reviewed and has never included more than one error per form reviewed. No change was made as a result of this comment.

Comment: Two commenters requested that the language in §371.214(f) be changed from HHSC "will direct DHS to hold vendor payments" to "may direct".

Response: HHSC disagrees. In the given situation, HHSC will always direct DHS to hold vendor payments. Stating that this "may" occur would be misleading. Additionally, all language in this rule pertaining to HHSC directing DHS to make changes to vendor payments is phrased in the same manner.

These rule amendments are adopted under authority granted to HHSC by §531.033, Government Code, which authorizes the Commissioner of Health and Human Services to adopt rules necessary to implement HHSC's duties, and under §531.021(a), Government Code, which authorizes HHSC to administer federal medical assistance (Medicaid) program funds.

§371.212.Case Mix Classification System.

The case mix classification system is defined in terms of recipient condition, functional performance in activities of daily living (ADL), and level of staff intervention. The classification system is divided into four clinical categories, which are further subdivided based on ADL scores that measure functional performance for eating, transferring, and toileting. The combination of clinical categories and ADL measurements yields an array of 11 Texas Index for Level of Effort (TILE) case-mix classifications.

(1)

Assessment period. The information on the Client Assessment Review and Evaluation (CARE) form for assignment of a clinical category or ADL score must be based on the recipient's status in the facility during the four weeks immediately preceding the assessment date, except in any of the following instances:

(A)

If the recipient has experienced what appears to be a permanent change in clinical or functional status within the past four weeks, the nursing facility or the hospice provider can choose to complete a new assessment. Information in the new assessment shall be based on the recipient's current status.

(B)

If the recipient has been admitted or readmitted to a facility during the past four weeks, the assessment is based on the status since admission or readmission.

(C)

The condition or event that precipitates the need for rehabilitative therapy/restorative nursing may have occurred no more than six months prior to the assessment period. An admission or transfer into a facility could qualify as an event.

(2)

Documentation. The documentation in the clinical record must be descriptive and quantitative to allow the accurate completion of the CARE form items relating to the recipient's condition(s), treatment(s), and the ADLs of eating, transferring, and toileting.

(A)

In the absence of required facility documentation, the Texas Health and Human Services Commission (Commission) nurse reviewers will use available data, staff interviews, and nursing observation to assign ADL scores.

(B)

The required documentation must appear in the clinical record during the assessment period to qualify for a clinical category. Lack of documentation will result in a change to an assessment item for a clinical category.

(C)

Lack of, conflicting, or altered documentation could be the basis for an adjustment in TILE.

(D)

Suspected fraudulent documentation, such as falsified or fabricated medical records, may result in a referral for investigation to the Medicaid Program Integrity Division of the Commission, as required as part of the state's methods for identification, investigation and referral for fraud under the Texas Administrative Code, Title 40, Part 1, Chapter 79, Subchapter V (relating to Fraud or Abuse Involving Medical Providers) and Code of Federal Regulations, Title 42, Chapter IV, Part 455 (concerning Program Integrity: Medicaid).

(3)

Clinical categories. Each recipient is assigned to one of the following four clinical categories based on qualifying conditions or treatments.

(A)

The heavy-care group. To qualify for the heavy-care clinical group, a recipient must have at least one of the following conditions or be receiving at least one of the following treatments, with supporting documentation in the clinical record, and the recipient must have a total ADL score of at least six out of a possible nine.

(i)

Coma. Persistent unconsciousness and unresponsiveness from which a resident cannot be aroused must be documented in the assessment period.

(ii)

Quadriplegia. Neurologic disorder causing paralysis of the four extremities, excluding loss of movement caused solely by contractures. Paralysis is defined as loss of power of voluntary movement in a muscle through injury or disease of its nerve supply. A description of the recipient's functional abilities and limitations must be documented in the clinical record in the assessment period.

(iii)

Stage III or IV decubitus with physician-ordered decubitus care and/or wound dressings twice a day. Decubitus covered by eschar is considered Stage IV. Decubitus must be described and care/dressings must be documented in the assessment period.

(iv)

Non-oral administration of 60% or more of the recipient's nourishment. Times, amount, and types of feeding must be documented in the assessment period.

(v)

Daily oral or nasal suctioning, which must be documented daily in the assessment period.

(vi)

Daily tracheotomy care or suctioning, excluding self-care, which must be documented daily in the assessment period.

(B)

The rehabilitation/restorative group. To qualify for the rehabilitation/restorative clinical group, a recipient must receive TILE 202 restorative nursing care as follow-up to rehabilitation therapy. The TILE 202 restorative nursing and rehabilitation therapy must meet the following criteria with supporting documentation in the clinical record. For hospice recipients residing in nursing facilities rehabilitation or restorative nursing care is only applicable for conditions unrelated to the terminal illness.

(i)

The rehabilitation therapy must be:

(I)

physical or occupational therapy, ordered by a physician, and provided by a licensed therapist or by certified or licensed occupational or physical therapy assistants (COTA/LPTA) under the supervision of a licensed therapist. Positioning, splinting, decubitus ulcer care, and training nursing staff (as in a functional maintenance program) are excluded from the TILE 202, even if provided by an occupational therapist or physical therapist;

(II)

initiated due to an identifiable, documented event, i.e., an illness, injury or physical change or an exacerbation of a chronic illness in the past six months with an associated change in ADL functioning. An admission or transfer into a facility could qualify as an event. The functional change must be documented through one of the following:

(-a-)

a description of the event or illness and the recipient's functional status before and after the event must be documented by nursing staff in the individual's clinical record or care plan; or

(-b-)

completion of a Minimum Data Set 2.0 Significant Change with an updated care plan;

(III)

expected to result in the recipient's making significant, measurable, functional progress, which must be documented in the therapy goals;

(IV)

provided on a one-to-one basis three times per therapy week for at least two therapy weeks; and

(V)

reimbursed by Medicare, Medicaid rehabilitative services, or another third party payer.

(ii)

The TILE 202 restorative nursing must:

(I)

be provided as part of a restorative care plan, based upon the therapist's written plan of care and developed by the restorative team, which must include and be signed by the therapist and a registered nurse;

(II)

begin during the assessment period;

(III)

begin within 14 days of the therapist's written restorative plan of care;

(IV)

be provided for a minimum of 24 sessions within eight therapy weeks, and must continue as long as clinically indicated; and

(V)

be supported by a Restorative Nursing Care Program form, or similar form containing the same elements, which must document each restorative session and the recipient's response to the restorative plan through:

(-a-)

a weekly note by the nursing or therapy staff (as appropriate); and

(-b-)

a written monthly review by the licensed nursing staff or, if services were supervised or delivered by a licensed therapist, by the licensed therapist.

(iii)

A recipient will be considered to be properly classified in this clinical group if all criteria in clauses (i) and (ii) of this paragraph are met except clause (i)(IV) and (V) of this subparagraph, which must be met within three months of the date of assessment;

(C)

The clinically unstable group. To qualify for the clinically unstable group, a recipient must have at least one of the following conditions or receive one of the following treatments during the assessment period.

(i)

Recent amputation of arms, legs, or parts thereof in the six months preceding the assessment date. Date and site of amputation must be documented in the clinical record.

(ii)

Seizures, which occurred in the facility, in the assessment period. A description of the seizure and nursing interventions must be documented in the clinical record.

(iii)

Dehydration with documented intake/output monitoring (including frequency and amounts of output) on at least two shifts per day. Dehydration that was diagnosed, treated, and resolved outside the facility and is no longer symptomatic is excluded. The signs, symptoms, interventions, and measures taken to prevent recurrence must be documented in the assessment period.

(iv)

Acute, symptomatic urinary tract infection (UTI) with a documented intake and output (including frequency and amounts of output) on three shifts a day. UTIs that were diagnosed, treated and resolved outside the facility and are no longer symptomatic and UTIs identified by urinalysis alone are excluded. The signs, symptoms, interventions and measures taken to prevent recurrence must be documented in the assessment period.

(v)

Incontinence or a Foley catheter, with an individualized bowel or bladder rehabilitation program requiring staff intervention at least three times per day. The program must assess the cause of the incontinence and the rehabilitative potential, and document the interventions and outcomes. The care plan must include the individualized goals and approaches that reflect both the resident and nursing participation in the process. Frequency of staff intervention must be documented.

(vi)

Oxygen administration, which must be documented on a daily basis during the assessment period. One day of oxygen use is excluded from reimbursement as a daily oxygen charge.

(vii)

Respiratory therapy, ordered by a physician, performed by licensed nursing staff or a respiratory therapist, received at least three times per day, and documented in the assessment period. Respiratory therapy includes nebulizers, percussion, cupping, postural drainage, updrafts, and intermittent positive pressure breathing (IPPB) treatments, but excludes inhalers.

(viii)

Wound dressing applied to an open wound at least two times per day, excluding simple skin tears and closed abrasions. A description of the wound and the treatment, including frequency, must be documented in the assessment period.

(D)

The clinically stable group. This clinical group includes all recipients who do not qualify clinically for the heavy-care, rehabilitation/restorative, or clinically unstable group, and who have an ADL score between 3 and 9. The clinically stable group includes a mental/behavioral condition subgroup. A recipient qualifies for this subgroup if:

(i)

they have an ADL score of exactly three; and

(ii)

they have at least one of the following cognitive or behavioral characteristics:

(I)

incoherent/frequent disorientation requiring daily staff intervention. Orientation problems must be described in the clinical record in the assessment period, including the staff intervention required and its frequency; or

(II)

disruptive or aggressive behavior, requiring immediate staff intervention on a daily basis. The behaviors must be described in the clinical record, in the assessment period, including the frequency and the required staff intervention.

(4)

Computation of the ADL scale. The ADL scale is used to assess recipients' daily functional abilities in eating, transferring and toileting. The facility nurse assessors rate these activities with a value of one to five on the CARE form. The CARE form values are recoded by DHS into a three-point system. The recoding results in points that range from one to three for each item and totals from three to nine for all three items. A recipient's total points for all three ADLs are used to determine case-mix classifications within the clinical categories. The ADLs and their corresponding points on the TILE nine-point scale are:

(A)

Transferring, or the process of moving between positions, such as to or from a bed, a chair, or a standing position, but excluding to and from the toilet.

(i)

One TILE point is given for recipients rated as:

(I)

Independent; no staff assistance required, but recipient may use equipment such as railings, trapeze, etc.

(II)

Pro re nata (PRN); recipient requires PRN assistance for transfers.

(ii)

Two TILE points are given for recipients rated as "one to transfer"; requires one person continuously for physical or verbal assist on 60% or more of the transfers. When assistance is required and for what reason must be documented in the assessment period.

(iii)

Three TILE points are given for recipients rated as:

(I)

Two to transfer; requires assistance of two or more staff during the entire activity on 60% or more of the transfers. When assistance is required and for what reason must be documented in the assessment period.

(II)

Not Transferred; may be transferred to a stretcher or chair once a week or less, excluding transfers to bath or toilet.

(B)

Eating, including the use of an enteral or parenteral tube, but excluding tray set up and food preparation.

(i)

One TILE point is given for recipients rated as:

(I)

Independent or recipient has chosen not to receive nutrition.

(II)

Intermittent assistance; requires verbal or physical assistance less than 60% of the time.

(ii)

Two TILE points are given for recipients rated as:

(I)

Being trained to feed themselves. An assessment of the retraining potential and a description of the training program must be documented in the clinical record in the assessment period. The retraining program must include a minimum of training at two meals per day.

(II)

Requiring assistance to syringe or spoon-feed for 60% or more of the time. The type of assistance, when the assistance is required, and for what reason must be documented in the clinical record.

(iii)

Three TILE points are given for recipients rated as receiving non-oral feedings for 60% or more of the recipient's nutrition using a tube such as a naso-gastric tube, gastrostromy tube, percutaneous endoscopic gastrostromy tube, or administration of total parenteral nutrition via a central line. The frequency, amounts, routes, and times the non-oral feedings were administered must be documented in the clinical record.

(C)

Toileting, or the process of elimination including the use of a bedpan, urinal, bedside commode, or toilet, or ostomy or incontinent care.

(i)

One TILE point is given for recipients rated as:

(I)

Independent, including the use of special equipment or performing of own incontinent care, self-catheterization, ostomy care.

(II)

Requires assistance but can be left alone for privacy. Assistance may include transferring on and off the commode, cleansing after elimination, adjusting clothing, or washing hands.

(ii)

Two TILE points are given for recipients rated as incontinent or having an indwelling catheter, including staff-administered ostomy care, incontinence care using protective padding, incontinence briefs, changing clothes, or a propped urinal. A description of what staff are required to do 60% or more of the time must be documented in the clinical record.

(iii)

Three TILE points will be given for recipients rated as:

(I)

Requiring physical or verbal assist or supervision during entire toileting process, excluding incontinent care, and cannot be left alone. The functional, medical, or behavioral reason the recipient cannot be left alone must be documented in the clinical record in the assessment period.

(II)

Receiving scheduled toileting by the staff every two hours during waking hours, or more often if needed by the resident, as incontinence management. Recipient does not initiate process and stays dry 60% or more of the time as the result of staff-initiated scheduled toileting. A description of staff actions and whether the resident was wet or dry each time he/she was taken to the toilet must be documented in the clinical record in the assessment period. Recipients who receive in and out catheterization by the staff two or more times each day are included in this category.

(5)

Special cases. A recipient who qualifies for more than one of the 11 TILE case-mix groups is classified in the group with the highest case-mix index and associated per diem rate. If a provider incorrectly or incompletely reports data necessary for TILE determination, the recipient is temporarily classified in the Default TILE 212 group until the data are corrected as provided by §371.214 of this title.

(6)

Case-mix classifications. Case-mix classifications are determined by the clinical group in combination with the ADL score as follows:

(A)

TILE 201; heavy care and an ADL score of 8-9;

(B)

TILE 203; heavy care and an ADL score of 6-7;

(C)

TILE 202; rehabilitation and an ADL score of at least 3;

(D)

TILE 204; clinically unstable and an ADL score of 7-9;

(E)

TILE 205; clinically stable and an ADL score of 7-9;

(F)

TILE 206; clinically unstable and an ADL score of 4-6;

(G)

TILE 207; clinically stable and an ADL score of 5-6;

(H)

TILE 208; clinically unstable and an ADL score of 3;

(I)

TILE 209; clinically stable and an ADL score of 4;

(J)

TILE 210; clinically stable, an ADL score of exactly 3, and includes a mental/behavioral subcategory;

(K)

TILE 211; clinically stable and an ADL score of 3;

(L)

Default TILE 212 ; provider incorrectly or incompletely reports data necessary for TILE determination or if the facility fails to cooperate fully with nurse reviewers as provided by §371.214 of this title.

(7)

Required signatures. The Texas Nursing Facility CARE form must be signed by the director of nurses or the acting director of nurses and the facility nurse assessor, one of whom has received TILE training, as required by §371.214 of this title (relating to Texas Index for Level of Effort (TILE) Assessments). If the form is completed for a hospice recipient residing in the nursing facility, the form must also be signed by a hospice nurse assessor. These signatures certify the information claimed is accurate and complete and subject to penalties for falsification, as provided in 42 Code of Federal Regulations, Part 1003. A copy of the electronically transmitted form with the required signatures must be maintained by the nursing facility.

§371.213.Utilization Review and Control Activities Performed by Texas Health and Human Services Commission (Commission).

(a)

According to state law and the state plan requirements, the Texas Health and Human Services Commission (Commission) staff conducts required on-site activities related to utilization review. These activities include the review of all children residing in nursing facilities for quality of care regardless of payment source.

(b)

Facility staff must cooperate with and fully support the Commission staff during on-site reviews and facilitate personal contact with and observation of each resident and the review of each resident's clinical records.

§371.214.Texas Index for Level of Effort (TILE) Assessments.

(a)

Nursing facility nurse assessors assess recipients for TILE determination by completing Texas Nursing Facility Client Assessment, Review, and Evaluation (CARE) forms. The nursing facility and hospice nurse assessors assess hospice recipients who are residing in nursing facilities for TILE determination by completing the Texas Nursing Facility CARE forms. Hospice recipients residing in nursing facilities must have all eligibility forms submitted prior to Texas Department of Human Services (DHS) paying nursing facility room and board to the hospice provider. These assessments establish TILE classifications as described in paragraphs (1)-(8) of this subsection. Nursing facility nurse assessors must complete and pass the Texas Health and Human Services Commission (Commission) TILE training course with a minimum score of 70%. The nurse's license number will be registered with the National Heritage Insurance Company (NHIC). Hospice nurse assessors may complete the Commission's Texas TILE training course.

(1)

Preadmission assessments do not establish a TILE classification.

(2)

Admissions assessments establish TILE classifications as follows:

(A)

If the nursing facility resident has not previously attained a permanent medical necessity or if an individual is simultaneously admitted to a nursing facility as a hospice recipient, the nurse assessor submits an admission assessment within 20 calendar days of admission, as provided in the Texas Administrative Code (TAC), Title 40, Part 1, Chapter 19, Subchapter Y, §19.2403 (relating to Utilization Review Process). The admission assessment establishes a medical necessity (MN) and a TILE classification for 180 days.

(B)

If the nursing facility resident has previously attained a permanent MN, the admission assessment is completed on an abbreviated form, which sets TILE only.

(3)

One medical necessity review (MNR) is required 180 days after the effective date of the admission assessment. If the MNR indicates an MN for nursing facility care, DHS will notify the facility of the permanent MN. This notification becomes a part of the resident's permanent medical record. A permanent MN will be lost only if a resident is discharged to home for over 30 days. The MNR may also establish a new TILE classification.

(4)

After the establishment of permanent MN, residents with a 211 TILE require no further assessment unless there is a change in their condition. All other TILE levels require a review every 180 days.

(5)

If a recipient's medical condition changes to the extent that he qualifies for a different TILE, an off-cycle assessment may be submitted. If a nursing facility resident becomes a hospice recipient, an off-cycle assessment must be submitted. Only two off-cycle assessments for any one nursing facility resident or hospice recipient residing in a nursing facility are permitted per calendar year, one from January through June and one from July through December. The off-cycle assessment for a nursing facility resident that becomes a hospice recipient is not included in the two allowable off-cycle assessments. The assessment sets a new schedule for submission of forms if permanent MN has been achieved. Before permanent MN, the assessment will not set a new schedule for submission of forms.

(6)

A new CARE form may be submitted for the purpose of correcting errors previously made in the assessment portion of the form (Items 30, 31, and 50-99). The submission of the correction does not change the schedule for submission of forms or necessarily change the TILE group. Corrections must be submitted within 60 days from the date of assessment on the incorrect form. The Commission will not accept requests for changes submitted:

(A)

over 60 days from the date of assessment on the incorrect form; or

(B)

after notification of an on-site review date.

(7)

If a recipient experiences a significant change related to mental illness, mental retardation, and/or a related condition that indicates that the recipient might benefit from specialized services, a request for a recipient Preadmission Screening and Resident Review (PASARR) must be submitted to the local DHS' PASARR office using a CARE form.

(8)

A facility may submit a request for retroactive payment in the following instances:

(A)

when a facility provides care for a recipient for a period of time not covered by an effective MN determination at admission or by assessment CARE forms as provided in TAC, Title 40, Part 1, Chapter 19, Subchapter Y, §19.2413 (relating to Reconsideration of Medical Necessity Determination and Effective Dates); or

(B)

if a recipient is found to be otherwise eligible for Medicaid for the three months prior to the month of his date of application for Medicaid assistance as provided in TAC, Title 40, Part 1, Chapter 19, Subchapter Y, §19.2408 (relating to Retroactive Medical Necessity Determinations).

(C)

The effective date for a retroactive payment for a hospice recipient may not be prior to June 1, 2001.

(b)

Nursing facilities with new directors of nurses, nurse managers and nurse assessors may request a one time 60-day waiver to complete the TILE assessments. At the end of the 60-day waiver period, the nursing facility director of nurses, nurse manager and nurse assessor must complete and pass the Commission TILE training course with a minimum score of 70%. The Commission assumes cost for the initial TILE training course. The facility or individual shall assume the cost of any additional required training and testing for the same individual.

(c)

Review and appeal of case-mix assessments. Commission nurse reviewers conduct desk reviews and in-depth, on-site reviews of Texas Nursing Facility CARE forms completed by nursing facility and hospice staff to verify TILE and medical necessity information. The assessment forms and the entire medical record of a minimum of ten Medicaid recipients, excluding TILE 211, will be reviewed. Forms expired over 12 months will not be reviewed.

(1)

Commission nurse reviewers will notify nursing facilities and hospice providers a minimum of two working days prior to routine on-site visits. They will be given information regarding the recipients whose medical records will be reviewed, the time period covered by the review and the accommodations necessary for the review. No notice is required for facilities whose last two on-site visits resulted in corrective action; visits for investigation of TILE issues, including suspected fraud; or visits requested by another state agency. For routine onsite visits, nurse reviewers must be given prompt access to information and resources necessary to conduct the TILE review. Failure to do so may result in the nursing facility being classified in the Default TILE 212 until the visit can be conducted. Once the visit is conducted and the facility demonstrates the medical necessity of a higher TILE classification, the default TILE 212 will be released retroactive to the date of the event that prompted the default. A default TILE will not be applied in the event of unforeseen environmental conditions.

(2)

When a Commission nurse reviewer determines that the TILE classification is not substantiated and/or does not accurately reflect the recipient's status, the reviewer will discuss the error and give the provider an opportunity to submit additional documentation to support the item claimed. An exit conference is held with the nursing facility staff following the review. Hospice staff may attend if hospice recipients are reviewed. Additional documentation, staff interviews and nursing observation to support nursing facility resident and hospice recipient assessments may be presented at any time during the review process or the exit conference, and adjustments may be made. The nursing facility administrator and hospice provider are given formal notification of all TILE changes within 15 working days of the exit conference.

(A)

At the direction of the Commission, DHS recoups funds previously paid to the nursing facility and/or hospice provider under incorrect TILE classification. At the direction of the Commission, DHS pays the nursing facility and/or the hospice provider any increase due to a change in TILE classification.

(B)

The change in TILE classification and per diem rate is effective retroactively to the "effective date" of the assessment reviewed.

(3)

If a Commission nurse reviewer and a facility or hospice nurse assessor are unable to agree about an assessment, either provider may submit a reconsideration request to the Commission's state office nurse specialist.

(A)

The request for the reconsideration and all documentation supporting the requested changes must be received by the state office nurse specialist within 15 days of receipt of formal notification of TILE changes.

(B)

The state office nurse will review all material submitted by the provider and all information collected during the Utilization Review.

(C)

The TILE classification and associated per diem rate specified by the Commission nurse reviewer remain in effect during the reconsideration period.

(D)

If the reconsideration establishes that the Commission has changed a TILE classification in error, the Commission will direct DHS to correct the error retroactively.

(4)

If the provider disagrees with the findings of the state office nurse specialist, the provider may initiate a formal appeal, as stated in Title 40, Chapter 79, Subchapter Q (relating to Contract Appeals Process) by submitting a request to the Director, Hearings Department, Mail Code W-613, Texas Department of Human Services, P.O. Box 149030, Austin, Texas 78714-9030 within 15 days of receipt of notification of the results of the reconsideration.

(A)

The TILE classification and associated per diem rate specified by the state office nurse specialist remain in effect during the formal contract appeal.

(B)

If the contract appeal process establishes that the Commission has changed a TILE classification in error, the Commission will direct DHS to correct the error retroactively.

(d)

TILE error rates on the assessment forms reviewed which exceed 20% may result in a facility's undergoing a monitoring period.

(1)

During the monitoring period, nursing facilities may not submit Texas Nursing Facility CARE forms to NHIC either electronically or by mail. All Texas Nursing Facility CARE forms, which include both nursing facility residents and hospice recipients residing in nursing facilities, must be submitted to the Commission nurse reviewers.

(2)

The length of the monitoring period is 60 days. If accuracy of forms is still at an unacceptable level at the end of 60 days, the Commission may give a one-time, 30-day extension, if the facility has shown an attempt to improve their accuracy. If forms are not accurate at the end of 90 days, the Commission places the facility on compliance.

(e)

Compliance may result when a facility has a 20% or greater error rate on the current assessment forms reviewed and one of the following: a 20% or greater error rate by the end of a monitoring period; lack of documentation regarding key assessment items; a history of noncompliance; or medical records that contain alterations in areas designed to lower the TILE level and increase the payment.

(1)

Within a 30 to 45-day compliance period, facilities must complete new Texas Nursing Facility CARE forms on all recipients not in the original review.

(2)

During the compliance period, facilities may not submit Texas Nursing Facility CARE forms to NHIC either electronically or by mail. All Texas Nursing Facility CARE forms, which include both nursing facility residents and hospice recipients residing in nursing facilities, must be submitted to Commission nurse reviewers.

(f)

If a facility has a 20% or greater error rate by the end of the compliance period, the Commission will direct DHS to hold vendor payments to the facility until the facility has less than a 20% error rate. A decision to place a facility on vendor hold will be made by UR staff in state office.

(g)

The nursing facility nurse assessor and the director of nurses must complete and pass the Commission TILE training course with a minimum score of 70% within 60 days of the beginning of the compliance period or vendor hold. If a score of 70% or higher is not achieved by the director of nurses or facility nurse assessor, the nursing facility will remain on corrective action until such time as the acceptable score of 70% is achieved.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 25, 2001.

TRD-200103613

Marina S. Henderson

Executive Deputy Commissioner

Texas Health and Human Services Commission

Effective date: July 15, 2001

Proposal publication date: April 27, 2001

For further information, please call: (512) 424-6576