News Alert: CMS Stance on Total Knee Replacement Sparks Protests from Surgeons

Orthopedic surgeons are upset with various interpretations of regulations on total knee replacement coming from CMS.

The saga of determining the proper status for Medicare total knee replacement (TKR) patients continues.

As many people know, you do not want to upset a surgeon. And it appears that the Centers for Medicare & Medicaid Services (CMS) did just that. In fact, I’d say that CMS upset every orthopedic surgeon in the country, because a letter was sent to Seema Verma, the CMS administrator, signed by the American Academy of Orthopedic Surgery (AAOS), the American Association of Hip and Knee Surgeons, The Knee Society, The Hip Society, and 35 other state and regional orthopedic societies. In that letter, they were very clear that they are not happy with the many interpretations of the regulation and the resultant confusion of the 34,000 orthopedic surgeons they represent.

Stephen Sokolyk, MD at Texas Health Resources, explained the problem well: he works with orthopedists who only do hip and knee replacement. That means until this year every surgery they did was inpatient-only. So when he tried to explain that the change means that the status of a knee replacement patient would now be viewed the same way they’d view a fracture of the arm needing surgery, the doctors found it “humorous,” because they don’t treat fractures. So he had to keep it as simple as possible.

But as we all know, the regulations are far from simple and the answers given on the recent Open Door Forum (ODF) did nothing to clarify that. The AAOS has asked CMS to develop clear criteria for status, and AAOS continues with their position that outpatient TKR procedure would be appropriate only for carefully selected patients who are in excellent health, with no or limited medical comorbidities, and who have sufficient caregiver support.

The AAOS is also calling on CMS to intervene with the Medicare Advantage plans and their inconsistent status determinations. The AAOS is very concerned with the impact that this change has on the bundled payment programs, as this will have significant adverse financial effects on both physicians and hospitals, as I laid out in a past RACmonitor article, and AAOS made several proposals to alleviate that. It appears CMS is at least listening to them. In the letter, AAOS references that they have had several teleconferences with CMS while the rest of us have had to rely on the one ODF and a lot of speculation.

It was also reported that a CMS medical officer spoke at a recent American Health Lawyers Association meeting. Marjory Cannon, MD, a CMS medical officer in the division of Beneficiary Healthcare Improvement and Safety, addressed the rumors that because of the removal of TKR from the inpatient-only list there will be an increase in denials of claims.“I wanted to dispel that misconception,” Dr. Cannon reportedly told attendees.

That statement reassures me that CMS is well aware that this remains a big mess and they are not going to take any audit action until things settle down and get sorted out.

I think all this gives more support to the stance advocated in my past RACmonitor article and webcast, and what you will be hearing if you attend the upcoming webcast with Mary Beth Pace and Jeff Pilger, MD.

While I talk the talk, Ms. Pace and Dr. Pilger walk the walk. And you can learn the walk too.

Facebook
Twitter
LinkedIn

Ronald Hirsch, MD, FACP, ACPA-C, CHCQM, CHRI

Ronald Hirsch, MD, is vice president of the Regulations and Education Group at R1 Physician Advisory Services. Dr. Hirsch’s career in medicine includes many clinical leadership roles at healthcare organizations ranging from acute-care hospitals and home health agencies to long-term care facilities and group medical practices. In addition to serving as a medical director of case management and medical necessity reviewer throughout his career, Dr. Hirsch has delivered numerous peer lectures on case management best practices and is a published author on the topic. He is a member of the Credentials Council and Government Affairs Committee of the American College of Physician Advisors, on the advisory board of the National Association of Healthcare Revenue Integrity, a member of the American Case Management Association, and a Fellow of the American College of Physicians. Dr. Hirsch is a member of the RACmonitor editorial board and is regular panelist on Monitor Mondays. The opinions expressed are those of the author and do not necessarily reflect the views, policies, or opinions of R1 RCM, Inc. or R1 Physician Advisory Services (R1 PAS).

Related Stories

Leave a Reply

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

Featured Webcasts

AI, Audits, and the Future of the Revenue Cycle

Artificial intelligence is rapidly transforming healthcare revenue cycle operations, from coding and auditing to compliance and denials. Join industry leaders Pam Warren (MaineHealth) and Raemarie Jimenez (AAPC) for a live fireside chat exploring how AI is changing workflows, workforce roles, payer-provider dynamics, and compliance risk—and what organizations should be doing now to prepare.

June 17, 2026

Trending News

Featured Webcasts

Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules – Part 2

Medicare regulations are complex and even seasoned professionals struggle to apply them consistently. Due to overwhelming demand, Dr. Hirsch returns for Part 2 of Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules to answer even more of Medicare’s most misunderstood questions, covering inpatient status, observation, SNF access, Medicare Advantage denials, and more. Join Dr. Hirsch as he provides clear, referenced answers to real-world questions submitted by your peers, helping you navigate Medicare compliance with confidence and clarity.

June 18, 2026

Reengineering Utilization Management: Building an Adaptive Model for the New Payer Era

Traditional utilization management models can no longer keep pace with regulatory shifts, payer scrutiny, and operational pressures. In this webcast, Tiffany Ferguson, LMSW, CMAC, ACM, ACPA-C, introduces an Adaptive Model strategy that modernizes UM through role specialization, technology-driven workflows, and proactive, team-based processes. Attendees will learn how to restructure programs to improve efficiency, strengthen clinical collaboration, and enhance financial performance in a rapidly changing healthcare environment.

May 20, 2026

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

Trending News

Celebrate Lab Week with MedLearn! Sign up to win one year of our Laboratory All Access Pass! Click here to learn more →

Have a Medicare regulation question you’d love Dr. Hirsch to answer? Now is your chance! CLICK HERE to learn more→

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 →

This Memorial Day, we honor those who gave all for our freedom. Take 20% off sitewide through May 29 with code MEMORIAL26 at checkout

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

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