TITLE 1.ADMINISTRATION

Part 15. TEXAS HEALTH AND HUMAN SERVICES COMMISSION

Chapter 354. MEDICAID HEALTH SERVICES

Subchapter A. PURCHASED HEALTH SERVICES

30. DISEASE MANAGEMENT

1 TAC §354.1391

The Texas Health and Human Services Commission (HHSC) proposes to amend Chapter 354, Medicaid Health Services by adding a new division to the existing subchapters. HHSC adds Division 30, Disease Management §354.1391, concerning Conditions for Participation. Chapter 354 describes the benefits and provider requirements of the Texas medical assistance (Medicaid) program. The new division added at §354.1391, Conditions for Participation, outlines the requirements for entities that wish to contract with HHSC to provide disease management services to recipients of Medicaid. The proposed section is required to satisfy the requirements of House Bill 727, 78th Legislature, regular session (2003), which mandates that HHSC, by rule, shall prescribe the minimum requirements that a provider of a disease management program must meet to be eligible to receive a contract.

Tom Suehs, Deputy Commissioner for Financial Services, has determined that during the first 5-year period the proposed rule is in effect there will be no fiscal impact to state government. The proposed rule will not result in any fiscal implications for local health and human services agencies. Local governments will not incur additional costs.

Mr. Suehs has also determined that there will be no effect on small businesses or micro businesses to comply with the new rule as proposed as they will not be required to alter their business practices as a result of the rule. There are no anticipated economic costs to persons who are required to comply with the proposed rule. There is no anticipated negative impact on local employment.

Dena Stoner, Associate Medicaid and CHIP director for Program Innovation, has determined that for each year of the first five years the section is in effect, the public will benefit from the adoption of the section. The anticipated public benefit, as a result of enforcing the section, will be the establishment of minimum program requirements for providers of disease management services, and to ensure Medicaid recipients obtain consistent, quality health service interventions.

HHSC has determined that the proposed rule is not a "major environmental rule" as defined by §2001.0225 of the Texas Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environment exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. The proposed rule is not specifically intended to protect the environment or reduce risks to human health from environment exposure.

HHSC has determined that the proposed rule does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under §2007.043 of the Government Code.

Written comments on the proposal may be submitted to Geri Willems, Program Analyst, at P.O. Box 13247 Mail Code H-100, Austin, Texas 78711-3247, by fax to 512-424-6665, or by e-mail to geri.willems@hhsc.state.tx.us within 30 days of publication of this proposal in the Texas Register . A public hearing is scheduled for February 17, 2004 from 9:00 a.m. to 11:00 a.m. (central time) in the Public Hearing Room of the Brown Heatly State Office Building, 4900 North Lamar, Austin, Texas. Persons requiring further information, special assistance, or accommodations should contact Linda Williams at (512) 424-6646.

The new rule is proposed under the Texas Government Code, §531.033, which provides the Commissioner of HHSC with broad rulemaking authority; the Human Resources Code, §32.021, and the Texas Government Code, §531.021(a), which provides the Health and Human Services Commission (HHSC) with the authority to administer the federal medical assistance (Medicaid) program in Texas.

The proposed rule affects the Human Resources Code, Chapter 32, and the Texas Government Code, Chapter 531. No other statutes, articles, or codes are affected by the proposed new rule.

§354.1391.Conditions for Participation.

In addition to the general requirements for contractors listed in Chapter 391, Purchase of Goods and Services by Health and Human Services Agencies and Chapter 392, Procurements by the Health and Human Services Commission, disease management companies must meet all of the following program requirements to be considered for a contract with the state. Entities who wish to contract with the Health and Human Services Commission (HHSC) to provide disease management services must meet the following conditions:

(1) Have an appropriate method for using HHSC healthcare data to identify targeted disease populations;

(2) Have an evidence-based healthcare practice guideline with minimum standards of care and clinical outcomes for each targeted disease;

(3) Have collaborative healthcare practice models in place to include HHSC's contracted physicians, support service providers, and existing community resources;

(4) Ensure that a recipient's primary care physician (PCP) and other appropriate specialty physicians, or registered nurses, advance practice nurses, or physician assistants become directly involved in the disease management program through which the recipient receives services;

(5) Have patient self-care management education materials and methods appropriate to each targeted disease population that demonstrate cultural competency;

(6) Have service provider education materials and methods appropriate to each targeted disease population;

(7) Have process and outcome measurements, evaluations, and management systems based on standardized best practice guidelines;

(8) Have routine reporting processes that are proven to properly support disease management goals;

(9) Have demonstrable, measurable, and successful experience in disease management for the targeted disease populations;

(10) Provide access to 24 hour-a-day, seven days-per-week nurse call center;

(11) Have the ability to guarantee program savings; and

(12) Meet applicable federal and state laws and regulations governing the participation of providers in the Medicaid program.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400357

Steve Aragón

General Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: February 29, 2004

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


Chapter 355. MEDICAID REIMBURSEMENT RATES

Subchapter J. PURCHASED HEALTH SERVICES

4. MEDICAID HOSPITAL SERVICES

1 TAC §355.8069

The Health and Human Services Commission (HHSC) proposes to amend §355.8069, concerning the reimbursement methodology for supplemental payments to certain rural public hospitals. The proposed amendment eliminates the aggregate limit on supplemental inpatient payments to non-state government owned or operated rural public hospitals. The purpose of the supplemental payment is to recognize the unique role that rural public hospitals play in the Texas healthcare delivery system for the Medicaid population. As a result, the proposed amendment will implement changes to ensure that Medicaid payments are commensurate with Medicare payments and/or payment principles.

Tom Suehs, Chief Financial Officer, has determined that for the first five years the proposed rules are in effect, there will be fiscal implications to state and local governments as a result of enforcing or administering the proposed amendment. The fiscal implications to state health and human services agencies will be negligible as a result of enforcing or administering this amendment. Local governments will incur additional cost to administer this section, however, additional revenues will offset any such costs which are estimated to be minimal. Additional revenues to local governments are estimated to be $8,743,960 in State Fiscal Year 2004; $9,972,960 in State Fiscal Year 2005; $9,468,000 in State Fiscal Year 2006; $9,468,000 in State Fiscal Year 2007; and $9,468,000.

David Palmer, Director of Ratesetting and Actuarial Services, has determined that for each year of the first five years the proposed sections are in effect, the public benefit anticipated as a result of enforcing the proposed sections will be to provide HHSC with greater flexibility in allocating supplemental payments to rural public hospitals within appropriated funds for the 2004-2005 biennium. There is no anticipated impact on small businesses and micro-businesses to comply with the sections as proposed as they will not be required to alter their business practices as a result of the sections. There are no anticipated economic costs to persons who are required to comply with the proposed sections. There is no anticipated impact on local employment.

HHSC has determined that these proposed rule is not "a major environmental rule" as defined by §2001.0225 of the Texas Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risk to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. The proposed rule is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

HHSC has determined that the proposed rule does not restrict or limit an owner's right to their property that would otherwise exist in the absence of governmental action and therefore does not constitute a taking under §2007.043, Government Code.

Written comments on the proposal may be submitted to Mr. Scott Reasonover, Rate Analysis Department, Texas Health and Human Services Commission, 1100 W. 49th Street, Austin, Texas 78756, within 30 days of publication of this proposal in the Texas Register . In addition, a public hearing concerning the proposed rules will be held Thursday, February 19, 2004 at 10:00 a.m. in the public hearing room at the Texas Health and Human Services Commission, 11209 Metric Blvd., Building H, Austin, Texas 78758. To comply with federal regulations, a copy of the proposed rule is being sent to each Texas Department of Human Services (DHS) office where it will be available for public review upon request.

The amendment is proposed under the Texas Government Code, §531.033, which provides the commissioner of HHSC with broad rulemaking authority; the Human Resources Code, §32.021, and the Texas Government Code, §531.021(a), which provide HHSC with the authority to administer the federal medical assistance (Medicaid) program in Texas; and the Texas Government Code, §531.021(b), which provides HHSC with the authority to propose and adopt rules governing the determination of Medicaid reimbursements.

The proposed rule affects the Human Resources Code, Chapter 32 and the Texas Government Code, Chapter 531.

§355.8069.Supplemental Payments to Certain Rural Public Hospitals.

Notwithstanding other provisions of this subchapter and subject to the availability of funds, supplemental payments are available under this section for inpatient hospital services provided by certain rural public hospitals.

(1) For purposes of this section, "rural public hospital" means a public hospital affiliated with a city, county, hospital authority, or hospital district located in a county of less than 100,000 population based on the most recent federal decennial census.

(2) State funding for supplemental payments authorized under this section is limited to and obtained through intergovernmental transfers of city, county, hospital authority, or hospital district funds. Inpatient [ The ] supplemental payments described in this section are made in accordance with the applicable regulations regarding the Medicaid upper limit provisions codified at 42 C.F.R. §447.272 . [ and do not exceed $35,000,000 per state fiscal year. ]

(3) The amount of supplemental payments and fee-for-service Medicaid inpatient payments (including DRG and TEFRA inpatient cost settlements) the hospital receives in a state fiscal year may not exceed Medicaid inpatient billed charges for inpatient services provided by the hospital to fee-for-service Medicaid recipients in accordance with 42 C.F.R. §447.271.

(4) Supplemental payments are made to two groups of rural public hospitals:

(A) Rural public hospitals that have a deficit between fee-for-service Medicaid billed charges and fee-for-service Medicaid payments (including supplemental payments) which is greater than one percent of the total deficit between fee-for-service Medicaid billed charges and fee-for-service Medicaid payments (including supplemental payments) for all rural public hospitals. Medicaid billed charges and payments are based on a 12-consecutive-month period of fee-for-service claims data selected by HHSC.

(B) All other rural public hospitals that have a deficit between fee-for-service Medicaid billed charges and fee-for-service Medicaid payments (including supplemental payments). Medicaid billed charges and payments are based on a 12-consecutive-month period of fee-for-service claims data selected by HHSC.

(5) Supplemental payments are made quarterly to eligible rural public hospitals.

(A) For hospitals eligible for payments according to paragraph (4)(A) of this section, the amount of the quarterly supplemental payments is one-fourth of:

(i) The amount determined by multiplying the current state fiscal year Federal Medical Assistance Percentage (FMAP) by the deficit between fee-for-service Medicaid billed charges and fee-for-service Medicaid payments (including supplemental payments); and

(ii) The hospital's pro rata share of the amount available to be distributed after subtracting payments to hospitals according to clause (i) of this subparagraph.

(B) For hospitals eligible for payments according to paragraph (4)(B) of this section, the amount of the quarterly supplemental payments is one-fourth of the hospital's pro rata share of the amount available to be distributed after subtracting payments to hospitals according to subparagraph (A)(i) of this paragraph.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400358

Steve Aragón

General Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: February 29, 2004

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


Chapter 371. MEDICAID FRAUD AND ABUSE PROGRAM INTEGRITY

Subchapter C. UTILIZATION REVIEW

1 TAC §371.206

The Health and Human Services Commission (HHSC) proposes to amend Chapter 371, concerning Medicaid Fraud and Abuse Program Integrity, Subchapter C, concerning Utilization Review, §371.206, concerning Denials and Recoupments for Texas Medical Review Program (TMRP), Tax Equity and Fiscal Responsibility Act (TEFRA), and LoneSTAR Select II Contracted Hospitals.

The proposed amendment is to revise the time limit for a hospital to rebill a claim, as an outpatient claim, from the current 180 days to 95 days. The proposed amendment is prompted by the Texas Medicaid program transition from a health insuring agent arrangement to a fiscal agent arrangement and the differences in the federal claims payment guidelines associated with each. Compliance with claim filing deadlines associated with the fiscal agent arrangement necessitates a change in this rule.

Tom Suehs, Deputy Commissioner for Financial Services, has determined that for the first five year period the proposed amendment is in effect, there are no foreseeable implications relating to costs or revenues of state or local governments as a result of enforcing or administering the amended rule.

Mr. Suehs has also determined that for each year of the first five years the proposed amended rule is in effect, the public benefit anticipated as a result of enforcing the amended rule will be that HHSC's rules are consistent with the claims filing deadlines associated with the fiscal agent arrangement.

The proposed amendment will not result in additional costs to persons required to comply with the rule. The rule amendment does not have any anticipated adverse effect on small or micro-businesses. The rule amendment will not negatively affect local employment.

The HHSC has determined that the proposed rule amendment is not a "major environmental rule" as defined by §2001.0225, Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed rule amendment is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

HHSC has determined that the proposed amendment does not restrict or limit owners' rights to their property that would otherwise exist in the absence of governmental action and, therefore, does not constitute a taking as defined in §2007.043, Government Code. The proposed rule amendment is administrative and does not impose any new regulatory requirements. The proposed rule amendment is reasonably taken to fulfill requirements of state law.

Comments on the proposed amendment may be submitted in writing to Dan McCullough, Hospital Utilization Review Manager, Texas Health and Human Services Commission, P.O. Box 13247, Austin, Texas, 78711-3247, or by e-mail to dan.mccullough@hhsc.state.tx.us. Comments will be accepted for 30 days following publication of this proposal in the Texas Register .

The amendment is proposed under authority granted to HHSC by §531.033 Government Code, which authorizes the Executive 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.

The proposed amendment affects Chapter 32 of the Human Resources Code.

§371.206.Denials and Recoupments for Texas Medical Review Program (TMRP), Tax Equity and Fiscal Responsibility Act (TEFRA), and LoneSTAR Select II Contracted Hospitals.

(a) Reviews conducted under the Texas Medical Review Program (TMRP), Tax Equity and Fiscal Responsibility Act (TEFRA), and LoneSTAR Select II Contracting programs may result in denials of claims. The Texas Health and Human Services Commission (Commission) will notify the hospital in writing of the denial decision, and instruct the claims administrator to recoup payment. If a hospital claim is denied for lack of medical necessity or for being provided in an inappropriate setting, the Commission will consider for denial physician claims associated with the hospital admission or service when such claims can be identified and are deemed to be the result of inappropriate admission orders. Types of denials are:

(1) Admission and days of stay denials. A physician consultant under contract with the Commission makes all decisions regarding medical necessity, cause of readmission, and appropriateness of setting.

(2) Technical denials. The Commission will issue a technical denial when a hospital fails to make the complete medical record available for review within specified time frames. These services may not be rebilled on an outpatient basis.

(A) For on-site reviews, if the complete medical record is not made available during the on-site review, the Commission will issue a preliminary technical denial at that time. The hospital is allowed sixty calendar days from the date of the exit conference to provide the complete medical record to the Commission. If the complete medical record is not received by the Commission within this time frame, the Commission will issue a final technical denial. If the Commission requests a copy of the medical record in writing, and the copy is not received within the specified time frame, the Commission will issue a preliminary technical denial by certified mail or fax machine. The hospital has sixty calendar days from the date of the notice to submit the complete medical record. If the complete medical record is not received by the Commission within this time frame, the Commission will issue a final technical denial.

(B) For mail-in reviews, the Commission will request copies of medical records in writing. If the Commission does not receive the complete medical record within the specified time frame, the Commission will issue a preliminary technical denial by certified mail or fax machine. The hospital has sixty calendar days from the date of the notice to submit the complete medical record. If the Commission does not receive the complete medical record within this specified time frame, the Commission will issue a final technical denial.

(3) Readmission denial. If it is determined that the services provided in the second or subsequent admissions were the direct result of a premature discharge or should have been provided in the first or previous admission, the Commission will deny the admission in question

(4) Day outlier denial. If it is determined that any days qualifying as outlier days during the admission were not medically necessary, the Commission will deny those days.

(5) Cost outlier denial. If it is determined that services delivered were not medically necessary, not ordered by a physician, not rendered or billed appropriately, or not substantiated in the medical record, the Commission will deny those services.

(b) When an admission denial or day of stay denial is issued, the Commission will direct the claims administrator to recoup payment. If a hospital claim is denied for lack of medical necessity or for being provided in an inappropriate setting, the Commission will consider for denial physician claims associated with the hospital admission or service when such claims can be identified and are deemed to be the result of inappropriate admission orders. The Commission will make an exception in the case of TMRP hospitals if the patient was originally placed in observation, and the hospital has been notified by the Commission that they may submit a revised outpatient claim solely for medically necessary outpatient services provided during the observation period. A physician's order for observation must be present in the physician's orders to document that the patient was originally placed in outpatient observation. The hospital must submit the revised outpatient claim and a copy of the Commission's notification letter to the claims administrator at the address indicated in the notification letter. The claims administrator must receive the outpatient claim and copy of the notification letter within ninety-five [ one hundred eighty ] calendar days of the date of the notification letter. The claims administrator may consider payment for the medically necessary services provided during the twenty-four hour observation period. The hospital may provide observation services in any part of the hospital where a patient can be assessed, monitored and treated.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400359

Steve Aragón

General Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: February 29, 2004

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


1 TAC §§371.212 - 371.214

The Health and Human Services Commission (HHSC) proposes to amend Chapter 371, Medicaid Fraud and Abuse Program Integrity, Subchapter C, Utilization Review, §371.212, Case Mix Classification System, §371.213, Utilization Review and Control Activities Performed by Texas Department of Human Services, concerning the authority for on-site utilization review activities, and §371.214, Texas Index for Level of Effort (TILE) Assessments.

The 75th Legislature, Regular Session, 1997, through Senate Bill 30, directed the transfer of Utilization Assessment and Review and all its powers, duties, functions, and programs from the Texas Department of Human Services (TDHS) to HHSC, effective September 1, 1997. Rules were officially transferred in March 2000, without language change, from Title 40 of this code to Title 1. One of the functions transferred was the case mix review of nursing facilities. "Case mix" refers to a method of classifying recipients based on their resource and service needs and determining a payment rate based on that classification.

HHSC's Utilization Review (UR) staff has been evaluating the current process since the transfer of the case mix review function to HHSC in 1997. UR staff has determined that these proposed rule amendments are needed to increase the UR staff's effectiveness in the identification, prevention, and elimination of fraud, abuse, waste, and neglect, as well as the enforcement of applicable laws and rules. In addition, the proposed rule amendments add or delete language in order to clarify requirements, correct grammar and spelling, eliminate outdated terms, and reflect current terminology.

These proposed amendments to the case mix rules were developed in conjunction with a work group consisting of representatives from the Texas Health Care Association, the Texas Association of Homes and Services for the Aging, the Texas-New Mexico Hospice Association, New Bell General Services, National Heritage Insurance Company, and state health and human services agencies.

Proposed §371.212 generally describes the case mix classification system and facility documentation requirements, gives direction on completing the Client Assessment Review and Evaluation (CARE) form, and gives definitions of the various clinical categories necessary to establish a Texas Index for Level of Effort (TILE) assessment. Under the proposed rules, there are changes in the Rehabilitation/Restorative requirements, oxygen administration requirements, respiratory therapy requirements, wound dressing requirements, training in reference to feeding, signature requirements, and the word "permanent" was replaced with "significant", including the definition of that term.

Proposed §371.213 deletes specific language in regard to the quality of care review of children. HHSC staff determined that there is no longer a need to conduct quality of care reviews on children in nursing facilities, because there are multiple agencies currently conducting these reviews, i.e., DHS, PASSAR, MHMR, etc.

Proposed §371.214 generally describes and provides direction for the completion of the TILE assessment. Under the proposed rules, there are changes in the process for conducting routine TILE reviews, the reconsideration process, the TILE training requirements for providers, and the corrective action process. Also, language in reference to the Default TILE 212 is deleted.

Tom Suehs, Deputy Commissioner for Financial Services, has determined that for each year of the first five years the proposed rules are in effect, the public will benefit from adoption of the rules by the resulting clarification of the criteria that govern the routine case mix review process.

Tom Suehs, Deputy Commissioner for Financial Services, has also determined that for each year of the first five years the proposed rules are in effect the proposed rules will have a positive fiscal impact to on state government. The estimated cost savings to the state agency will be approximately $56,000.00 due to the shifting of the financial responsibility for TILE training from the state to the Nursing Facility Providers. Enforcing or administering the amended rules does not have foreseeable implications relating to costs or revenues of state or local governments, other than the cost savings to the state noted above Small and Micro-business Impact Analysis

The proposed rules may result in additional costs to persons required to comply with the rules. The rules may have an adverse effect on small or micro-businesses. That adverse effect would be a result of shifting the financial responsibility for TILE training from the state to the Nursing Facility Providers, including those Providers that are small and micro businesses. Pursuant to Section 2006.002 of the Government Code, HHSC considered the measures that could be taken to reduce the adverse impact on micro or small businesses. It is not feasible for HHSC to exempt micro or small businesses from all or part of the rules or to establish separate compliance or reporting requirements for small or micro businesses. However, to reduce the anticipated adverse effect, HHSC eliminated the requirement that nursing facility staff take the TILE training during the corrective action process and, in practical effect, reduced the number of nursing facility staff required to take the TILE training. The proposed rules could result in only slightly increased cost or even a cost neutral situation for the providers who are small or micro businesses in that fewer staff have to take TILE training and have to take it less frequently than under the previous rules. The cost of compliance for small or micro businesses per each employee would be roughly the same as the cost of compliance for the largest Nursing Facility Providers affected by the proposed rules. It is not anticipated that the proposed rules will have a negative effect on local employment.

The Commission has determined that none of the proposed rules is a "major environmental rule," as defined by §2001.0225, Government Code. "Major environmental rule" is defined to mean a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. None of the proposed rules is specifically intended to protect the environment or reduce risks to human health from environmental exposure.

HHSC has determined that the proposed rules do not restrict or limit an owner's right to their property that would otherwise exist in the absence of government action and, therefore, do not constitute a taking as defined in Texas Government Code §2007.002. The majority of the proposed rules are administrative and do not impose any new regulatory requirements. The proposed rules are reasonably taken to fulfill requirements of state law.

Comments on the proposed rules may be submitted in writing to Sandra Brown, Nursing Facility Manager, Utilization Review, Texas Health and Human Services Commission, P.O. Box 13247, Austin, Texas 78711-3247, or by e-mail to Sandra.Brown@hhsc.state.tx.us. Comments will be accepted for 30 days following publication of this proposal in the Texas Register .

The amendments are proposed 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 section 531.021(a), Government Code, which authorizes HHSC to administer federal medical assistance (Medicaid) program funds.

The proposed rules affect Chapter 32 of the Human Resources Code.

§371.212.Case Mix Classification System.

The case mix classification system is defined in terms of the recipient's [ 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 . The [ ,except in any of the ] following instances are exceptions to the four week assessment period :

(A) If the recipient has experienced what appears to be a significant [ 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. "Significant change" as used here means a major decline or improvement in the resident's status that will not normally resolve itself without further intervention by staff or by implementing standard disease related clinical interventions, and requires review of the plan of care. 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 the date of admission or readmission to the nursing facility, until the date the assessment is completed .

(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 or HHSC ) nurse reviewers may [ 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 may [ could ] be the basis for an adjustment in TILE. The adjustment would be made based on a review of the available clinical record documentation, and, if necessary, staff interviews and observation of the recipient.

(D) Suspected fraudulent documentation, such as [ falsified or fabricated ] medical records that appear to have been altered, falsified, or fabricated, will [ , may ] result in a referral for investigation to the Office of Inspector General's (OIG) Medicaid Program Integrity (MPI) Division Health and Human Services Commission. This referral will be made [ 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 recipient [ 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. A recipient who receives rehabilitation and restorative care must be able to participate and/or follow instructions from the therapist and/or nursing staff, in order to maintain or improve on goals achieved during PT or OT.

(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 a [ an identifiable, ] documented event, i.e., an illness, traumatic injury or [ physical change or ] an exacerbation /significant improvement of a chronic medical condition [ illness ] in the past six months , which resulted in a visible change in the individual's ability to physically perform ADLs. The event and change in ADL functioning must be documented in the clinical record [ 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 , and/or other healthcare professionals in addition to the therapist, before the rehab services are initiated [ 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, and this [ 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 (therapy week: a seven-day period beginning the day of the first therapy treatment); and

(V) reimbursable [ 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 at discharge from skilled therapy, must be [ and ] developed by the restorative team, and [ , which must include and be ] signed by the therapist and a registered nurse;

(II) begin during the assessment period ; the restorative care sessions provided under Medicare will not count towards the required restorative care sessions for Medicaid ;

(III) begin within 14 days of the therapist's written restorative plan of care, which must be provided to the commission nurse reviewer(s) upon request ;

(IV) be provided for a minimum of 24 sessions within eight therapy weeks, which can be provided no more than two sessions per day, no less than four 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 are [ 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 subparagraph [ paragraph ] are met except clause (ii) [ (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) Amputation [ Recent amputation ] of arm(s), leg(s), [ 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, during [ in ] the assessment period. A description of the seizures [ 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 and [ , ] 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 and [ , ] treated [ and resolved ] outside the facility and are no longer symptomatic or [ and ] UTIs identified by routine urinalysis or urinalysis for culture and sensitivity alone are excluded. The signs, symptoms and [ , ] 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 state [ 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 recipient's [ resident ] and nursing participation in the process. Frequency of staff intervention must be documented.

(vi) Oxygen administration, [ which ] must be documented every day for a minimum of two weeks, including the method of administration, [ 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 for a minimum of two weeks, 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 by nursing to an open wound at least two times per day for a minimum of two weeks , 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. Recipients qualify [ 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 assistance [ 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. Documentation must support that facility staff provided retraining 60% or more of the time to facilitate the recipients' involvement in self performance of eating. 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, gastrostomy [ gastrostromy ] tube, percutaneous endoscopic gastrostomy [ 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 is [ 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 recipient [ 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 recipient [ 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 must be certified as having received, and passed, Commission-approved [ 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. Physicians' signatures must be present on all required Purpose Codes. A physician may delegate task(s) to a physician assistant, nurse practitioner, or clinical nurse specialist who is not an employee of the facility but who is working in collaboration with a physician. Services must be provided in the context of applicable state laws, rules, and regulations governing the practice of physician assistants, nurse practitioners, and clinical nurse specialists.

(A) 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.

(B) CARE forms that do not have the required signatures on the copies maintained in the facility or that cannot be located will be considered to be invalid assessments. The first time a facility is found to be out of compliance with this requirement, the recipient's TILE for the assessment period covered at the time of the review, will count towards the overall error rate for the onsite review. Subsequent findings of non-compliance with these requirements during the next review may result in a default 212 for the effective period of the invalid assessment. If the default 212 is implemented, the facility will be able to submit a reconsideration for the default 212.

(C) CARE forms submitted with the license number of a former employee or an expired nursing license number may result in the implementation of a default 212 for the effective period of the invalid assessment. If the default 212 is implemented, the facility will be able to submit a reconsideration for the default 212. The provider(s) and employee(s) involved may be referred to the Commission' s Office of Inspector General with a recommendation for an investigation of the facility, and a referral of the nurses to the Board of Nurse Examiners.

§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 and/or interview of each resident, and the review of each resident's clinical records.

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

(a) Texas Index for Level of Effort (TILE) Assessment and Client Assessment Review and Evaluation (CARE) form completion. TILE assessments are primarily based on the nursing facility nurse assessor's (FNA) evaluation of the recipient. This evaluation may also be supplemented by staff interviews and documentation in the medical record. TILE assessments are documented on the CARE form, and must be signed by the FNA that completed the assessment. [ Nursing facility nurse assessors assess recipients for TILE determination by completing the Texas Nursing Facility Client Assessment, Review and Evaluation (CARE) forms. The nursing facility and hospice nurse assessors assess hospice patients 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)- (9) [ (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) If the nursing facility recipient is also a hospice recipient, the following must be completed before the Texas Department of Human Services (DHS) will reimburse nursing facility room and board to the hospice provider:

(A) The hospice nurse assessor must also evaluate the hospice recipient and either:

(i) sign the CARE form completed by the nursing facility assessor to indicate complete agreement with the assessment; or

(ii) request the nursing facility assessor to complete a new CARE form based on a joint assessment, and then sign to indicate complete agreement with the assessment..

(B) The hospice provider must submit the Texas Medicaid Hospice Program Recipient Election/Cancellation/Discharge Notice (Form 3071), and the TDHS Medicaid/Medicare Hospice Program Physician Certification of Terminal Illness (Form 3074) forms to the DHS, Provider Claims Services Department.

(2) [ (1) ] Preadmission assessments do not establish a TILE classification.

(3) [ (2) ] Admissions assessments establish TILE classifications as follows:

(A) If the nursing facility recipient [ 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 begins the [ establishes a ] medical necessity (MN) process, and [ a ] TILE classification for 180 days.

(B) If the nursing facility recipient [ resident ] has previously attained [ a ] permanent MN, an [ the admission ] assessment with a purpose code 4 is completed [ on an abbreviated form ], which sets TILE only.

(4) [ (3) ] Medical [ One medical ] necessity review (MNR) is required 180 days after the effective date of the admission assessment. Nursing facilities can submit the renewal form up to 45 days prior to the expiration date of the current form. MN is established by completing an assessment with a purpose code 3. 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. The permanent MN will be lost if a recipient is discharged to home over 30 days.

(5) [ (4) ] After the establishment of permanent MN, recipients 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.

(6) [ (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 recipient [ resident ] becomes a hospice recipient or terminates hospice services , an off-cycle assessment must be submitted. Only two off-cycle assessments for any one nursing facility recipient [ 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 recipient [ resident ] that becomes a hospice recipient or terminates hospice services 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.

(7) [ (6) ] A new corrected CARE form and supportive documentation 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. The new corrected CARE form and the supportive documentation [ Corrections ] must be submitted within 60 days from the date of the assessment that contained error(s) [ on the incorrect form ]. The Commission will not accept requests for changes submitted:

(A) over 60 days from the date of the assessment that contained the error(s) [ on the incorrect form ];or

(B) on previously submitted forms with the same assessment date [ after notification of an on-site review date ].

(8) [ (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 Recipient [ Resident ] Review (PASARR) must be submitted to the local DHS' PASARR office using a CARE form.

(9) [ (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) TILE training. Nursing facility directors of nursing and nurse assessors must complete and pass the Texas Health and Human Services Commission (Commission) approved TILE training course with a minimum score of 70% in order for the nurse's license number to be registered with the Medicaid Claims Administrator (MCA). The TILE training certification will be effective for a two-year period. Currently certified TILE nurses will be granted a one year grace period from the effective date of the rule. Nursing facilities with new directors of nurses or [ , nurse manager 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, or [ , nurse manager and ] nurse assessor must have completed and passed [ complete and pass ] the Commission's approved [ Commission ] TILE training course with a minimum score of 70%. The hospice nurse assessors may complete the Commission's approved TILE training course, either on-line or by correspondence. Providers are required to pay $30.00 each time they register to take the on-line TILE training course. The correspondence course will continue to be available for a $30.00 fee plus an additional $10.00 handling fee. [ 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 conduct unannounced [ notify nursing facilities and hospice providers a minimum of two working days prior to routine ] on-site visits. The decisions regarding the validation of a claimed TILE, will be based on documentation that is presented to the nurse reviewers during the on-site visit. Forms expired over 12 months will not be routinely reviewed. [ 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 all on-site [ 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 information for the assessment period [ documentation ] to support the item claimed. An exit conference is held with the nursing facility staff following the review. Hospice staff are encouraged to [ may ] attend if hospice recipients are reviewed. The nursing facility and hospice staff may submit for consideration, additional [ Additional documentation, staff interviews and nursing observation to support nursing facility resident and hospice recipient assessments may be presented ] information for the assessment period , at any time during the review process or the exit conference[ , and adjustments may be made ]. The Commission gives the nursing facility administrator and hospice provider [ are given ] formal written notification of all TILE changes within 15 [ working ] days of the exit conference.

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

(B) The changes [ change ] in TILE classification and per diem rate are retroactive [ is effective retroactively ] to the "effective date" of the assessment reviewed.

(3) If the nursing facility and/or hospice provider disagrees with the Commission's TILE classification , [ a Commission nurse reviewer and a facility or hospice nurse assessor are unable to agree about an assessment, ] either , or both, provider(s) [ provider ] may submit a reconsideration request to the Commission [ Commission's state office nurse specialist ].

(A) The request for [ the ] reconsideration and all documentation supporting the requested changes must be received by the Commission [ the state office nurse specialist ] within 15 days of the facility's receipt of formal notification of TILE changes.

(B) Commission staff [ 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 remains [ 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 reconsideration determination [ findings of the state office nurse specialist ], the provider may request [ 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 the facility's receipt of notification of the results of the reconsideration.

(A) The TILE classification and associated per diem rate specified in the reconsideration determination remains [ by the state office nurse specialist remain ] in effect during the formal [ contract ] appeal.

(B) If the formal [ 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) Error rate. The error rate for a TILE review is determined by dividing the number of forms with an identified TILE decrease by the total number of forms reviewed .

(1) Frequency of on-site TILE reviews may be determined by the accuracy of the assessment and error rate history. Nursing facilities whose TILE error rates are below 25% may be visited less frequently, but within 16 month intervals. TILE error rates of 25% or higher, may require a return visit within 7 months [ on the assessment forms reviewed which exceeds 20% may result in a facility's undergoing a monitoring period ].

(2) If the TILE error rate is 20% or higher on the return visit, the Commission may direct DHS to hold vendor payment to the facility, including pass through funds to hospice providers until the facility's error rate is below 20%. During a vendor payment hold, facilities may not submit CARE forms to the MCA either electronically or by mail. All CARE forms and supportive documentation, which includes both NF recipients and hospice recipients, must be submitted to HHSC.

(3) Corrective action plan. For hospice providers, deficient practice in documentation may result in a corrective action plan.

[ (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 proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400360

Steve Aragón

General Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: February 29, 2004

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