BREAKING: Problems Plague Latest CMS TKA Memo

Errors persist in another communication on a key knee procedure.

Sixteen days after the original MLN Matters publication titled “Total Knee Arthroplasty (TKA) Removal from the Medicare Inpatient-Only (IPO) List and Application of the 2-Midnight Rule” was released, it was reissued today with clarifications. If you’re not aware why it was rescinded in the first place, read my Jan. 11 article here.

  1. Unfortunately, there continue to be issues in the newest version.  In the first cited case, the patient undergoes an elective TKA and is placed into observation after receiving routine post-operative care. This should be held up as an example of incorrect placement into observation, not passed off as an appropriate first point in the case summary. There is no reason for observation here! It even states in the “rationale for approval” section of this case that there were no intraoperative complications, so we know that’s not what could have supported observation. When the patient started having issues, the morning of post-op day one, then placement of an observation order was appropriate. Later in the day, when it was clear that the patient’s condition would require continued hospitalization past a second midnight, we all agree that a change to inpatient was then appropriate, as well.

    Conversely, there’s the consideration of this patient’s past medical history. While we don’t have a lot of details, diabetes mellitus (depending on the level of control), arrhythmia, sleep apnea, and possibly chronic opioid use giving her chronic pain all might place this patient square in the category of “high risk” from the start. Perhaps she was appropriate for inpatient status solely based on that? Or is this a clue from the Centers for Medicare & Medicaid Services (CMS) that none of that past medical history qualifies a patient as high risk? We just don’t know.

  2. In the second case, the patient was placed into inpatient status due to the development of post-operative bradycardia. But in the first version of the MLN Matters publication, this same patient was mentioned in the third-referenced case, and he was placed into inpatient status from the get-go due to his “extensive cardiac history.” My complaint at that time was that we didn’t receive strong guidance about what specifically qualified the patient as high risk, warranting inpatient status. Now, it looks like the patient isn’t considered high risk at all because he didn’t fit the criteria for inpatient care until the post-op bradycardia developed. What are we supposed to think now?

    Let’s also consider the idea of admitting a patient into inpatient status solely for bradycardia, even with a cardiac history. If this situation happened on post-op day one and a second midnight was anticipated/planned due to the need for continued monitoring/management in the hospital setting, then of course, inpatient care would be appropriate. But, on post-op day zero? Who’s to say that this patient’s rhythm wouldn’t normalize by the following day? Why would two midnights be anticipated immediately? I don’t think a scenario like this can reasonably be assessed to require at least two midnights of care. If CMS feels it can, does that mean every patient admitted from the emergency department with bradycardia and a cardiac history should be placed into inpatient status? Because CMS feels the admitting provider should reasonably anticipate two midnights? I can’t imagine that’s the case.

  3. I said this before, and I want to emphasize it again: the third case is extremely misleading, and does not jibe with the direction about determination of status as initially given in the 2018 Outpatient Prospective Payment System (OPPS) Final Rule, when TKAs came off (IPO) list, reading that “CMS continues its longstanding recognition that the decision to admit a patient as an inpatient is a complex medical decision, based on the physician’s clinical expectation of how long hospital care is anticipated to be necessary, considering the individual beneficiary’s unique clinical circumstances.” The emphasis is on how long hospital care is anticipated to be necessary. If determination of status for TKAs (or in any other scenario, when considering the case-by-case exception) also can involve “unique clinical circumstances,” then this guidance should be reworded as “CMS continues its longstanding recognition that the decision to admit a patient as an inpatient is a complex medical decision, based on the physician’s clinical expectation of how long hospital care is anticipated to be necessary or based on consideration of the individual beneficiary’s unique clinical circumstances.”

Will we see a third version of this MLN matters? Unfortunately, I doubt it. Does this MLN Matters help us at all with the topic at hand? Nope, not as far as I’m concerned.

Click here to view the latest version of Total Knee Arthroplasty (TKA) Removal from the Medicare Inpatient-Only (IPO) List and Application of the 2-Midnight Rule.

Program Note:
Listen to R. Phillip Baker, MD report on this developing story on Monitor Monday, Jan. 28, 10-10:30 a.m. EST.  

Facebook
Twitter
LinkedIn

Juliet Ugarte Hopkins, MD, ACPA-C

Juliet B. Ugarte Hopkins, MD, ACPA-C is Medical Director of Phoenix Medical Management, Inc., Immediate Past President of the American College of Physician Advisors, and CEO of Velvet Hammer Physician Advising LLC. Dr. Ugarte Hopkins practiced as a pediatric hospitalist for a decade and then developed the physician advisor role for case management, utilization, and clinical documentation at a three-hospital health system where she worked for nearly another decade. She is a member of the RACmonitor editorial board, author, and national speaker.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

The Cost of Ignoring Risk Adjustment: How HCCs Impact Revenue & Compliance

The Cost of Ignoring Risk Adjustment: How HCCs Impact Revenue & Compliance

Stop revenue leakage and boost hospital performance by mastering risk adjustment and HCCs. This essential webcast with expert Cheryl Ericson, RN, MS, CCDS, CDIP, will reveal how inaccurate patient acuity documentation leads to lost reimbursements through penalties from poor quality scores. Learn the critical differences between HCCs and traditional CCs/MCCs, adapt your CDI workflows, and ensure accurate payments in Medicare Advantage and value-based care models. Perfect for HIM leaders, coders, and CDI professionals.  Don’t miss this chance to protect your hospital’s revenue and reputation!

May 29, 2025
I050825

Mastering ICD-10-CM Coding for Diabetes and it’s Complications: Avoiding Denials & Ensuring Compliance

Struggling with ICD-10-CM coding for diabetes and complications? This expert-led webcast clarifies complex combination codes, documentation gaps, and sequencing rules to reduce denials and ensure compliance. Dr. Angela Comfort will provide actionable strategies to accurately link diabetes to complications, improve provider documentation, and optimize reimbursement—helping coders, CDI specialists, and HIM leaders minimize audit risks and strengthen revenue integrity. Don’t miss this chance to master diabetes coding with real-world case studies, key takeaways, and live Q&A!

May 8, 2025
2025 Coding Clinic Webcast Series

2025 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover critical guidance. HIM coding expert, Kay Piper, RHIA, CDIP, CCS, provides an interactive review on important information in each of the AHA’s 2025 ICD-10-CM/PCS Quarterly Coding Clinics in easy-to-access on-demand webcasts, available shortly after each official publication.

April 14, 2025

Trending News

Featured Webcasts

Medicare Advantage 2026: Navigating New Rules, Denial Protections & SDoH Shifts

Medicare Advantage 2026: Navigating New Rules, Denial Protections & SDoH Shifts

Stay ahead of Medicare Advantage’s 2025-2026 regulatory changes in this critical webcast featuring expert Tiffany Ferguson, LMSW, CMAC, ACM. Learn how new CMS rules limit MA plan denials, protect hospitals from retroactive claim reopenings, and modify Two-Midnight Rule enforcement—plus key insights on omitted SDoH mandates and heightened readmission scrutiny. Discover actionable strategies to safeguard revenue, ensure compliance, and adapt to evolving health equity priorities before the June 2025 deadline. Essential for hospitals, revenue cycle teams, and compliance professionals navigating MA’s shifting landscape.

May 28, 2025
Navigating the 3-Day & 1-Day Payment Window: Compliance, Billing, and Revenue Protection

Navigating the 3-Day & 1-Day Payment Window: Compliance, Billing, and Revenue Protection

Struggling with CMS’s 3-Day Payment Window? Join compliance expert Michael G. Calahan, PA, MBA, CCO, to master billing restrictions for pre-admission and inter-facility services. Learn how to avoid audit risks, optimize revenue cycle workflows, and ensure compliance across departments. Critical for C-suite leaders, providers, coders, revenue cycle teams, and compliance teams—this webcast delivers actionable strategies to protect reimbursements and meet federal regulations.

May 15, 2025
Audit-Proof Your Wound Care Procedures: Expert Insights on Compliance and Risk Mitigation

Audit-Proof Your Wound Care Procedures: Expert Insights on Compliance and Risk Mitigation

Providers face increasing Medicare audits when using skin substitute grafts, leaving many unprepared for claim denials and financial liabilities. Join veteran healthcare attorney Andrew B. Wachler, Esq., in this essential webcast and master the Medicare audit process, learn best practices for compliant billing and documentation, and mitigate fraud and abuse risks. With actionable insights and a live Q&A session, you’ll gain the tools to defend your practice and ensure compliance in this rapidly evolving landscape.

April 17, 2025
Utilization Review Essentials: What Every Professional Needs to Know About Medicare

Utilization Review Essentials: What Every Professional Needs to Know About Medicare

Dr. Ronald Hirsch dives into the basics of Medicare for clinicians to be successful as utilization review professionals. He’ll break down what Medicare does and doesn’t pay for, what services it provides and how hospitals get paid for providing those services – including both inpatient and outpatient. Learn how claims are prepared and how much patients must pay for their care. By attending our webcast, you will gain a new understanding of these issues and be better equipped to talk to patients, to their medical staff, and to their administrative team.

March 20, 2025

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24