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KAY STYER MELCHING MSA, BSN, RN, CPHQ ANWAR OSBORNE, MD, MPM, FACEP Operating an OBSERVATION UNIT

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KAY STYER MELCHING MSA, BSN, RN, CPHQANWAR OSBORNE, MD, MPM, FACEP

Operating an OBSERVATION UNIT

2

ObjectivesDefine and describe observation services

How to start a observation service line

Review research to support observation services

Develop inclusion and exclusion criteria

Metrics to assure success

Presenter
Presentation Notes
So, you may have heard this in that “What we know is that coronary heart disease is the number one disease in the US’.

3

Observation care is a well-defined set of specific,clinically appropriate services, which include ongoing short term treatment, assessment, and reassessmentbefore a decision can be made regarding whetherpatients will require further treatment as hospitalinpatients or if they are able to be discharged from thehospital. Observation services are commonly orderedfor patients who present to the emergencydepartment and who then require a significant period oftreatment or monitoring in order to make a decisionconcerning their admission or discharge.

What are Observation Services?

3

Presenter
Presentation Notes
This information comes from the hospital manual Obs services are there to make decisions…usually from emergency departments but let’s take a second and be clear about what they are not and I bet we all know what I’m talking about! For instance…raise your hand if a surgeon has said, just let them sit there with a hot gallbladder and I’ll see them in the morning How about, well, the patient doesn’t go home now…can they just stay here until the morning…. Both are no

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Observation services are those services:

a) Furnished on a hospital’s premises b) Includes use of a bed/periodic monitoring by nursing or other

staff c) Reasonable and necessary d) To evaluate an outpatient’s condition e) Determine the need for possible admission as an inpatient f) Ordered by physician g) Usually do not exceed one day h) May go for up to 48 hours i) Under unusual circumstances may exceed 48 hoursj) Must be at least 8 hours

Medicare Manual

Medicare from HIM-10 455 (Pub. 100-2, Medicare Benefits Policy Manual, Chapter 6, 70.4)

Presenter
Presentation Notes
So people have to have admitting privliges to put patients in obs And of course, this should happen within 24 hours It’s important to note that the hospital manual has not updated this language to fit into the 2 midnight rule view of inpatient services Best practice 15.7-17 lg fac. 19 smaller ones If under 8 hours no harm no foul but cannot bill for observation

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• Routine stays after surgery

• Diagnostic testing

• Outpatient therapy/procedures

• Normal post-op recovery time

• Convenience stays

• Stays prior to outpatient surgery

• Stays over 48 hours

• Stays while awaiting ECF placement

• Routine prep

• Recovery from a diagnostic procedure

Non-Qualifications for Observation Services

Presenter
Presentation Notes
762 recover pts. Post procedure

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Types of Observation Setting Models

TYPE 2 Discretionary care in an observation unit

TYPE 3 Protocol driven in any bed in the hospital

TYPE 1 Protocol driven in an observation unit.

TYPE 4 Discretionary care in any bed in the hospital

Presenter
Presentation Notes
Again, the majority of the clinical trials are in the type 1 model

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OPEN UNIT

• All physicians can admit

• Patient can be placed in “virtual bed”

Types of Observation Units

CLOSED UNIT

• Limited admitting physicians

• In a designated area

Presenter
Presentation Notes
While technically, you can have either an open or closed unit, I can tell you from experience, that the closed units are much easier to administrate over

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Based on 3 concepts:

When Is Observation Appropriate?

Probability of disease versus harm of the potential disease under consideration

Need for further testing to make a definitive diagnosis

The patient's condition warrants further observation and evaluation by the physician

1

2

3

Presenter
Presentation Notes
Patients placed in observation services usually fall into two categories 1, need additional testing or short term therapy Celulitis / CHF 30 day readmit rule

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Advantages of Observation Services

Observation services and units provide:

HIGH

QUALITYINCREASED

THROUGHPUT COST

AVOIDANCE

Presenter
Presentation Notes
Frees inpatient beds. No holding pts boarding

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• Where did we go wrong with observation services?

• We did not change our processes…

• Observation was viewed as just a “financial status for reimbursement purposes”

Process

1111

Observation is not only a financial designation

Inpatient Observation

Observation Medicine is a process

If you treat patient placed in observation services the same as inpatients you will get the same results

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Benefits of Observation Two-Fold

Cost Avoidance Increase Revenue

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Advantages of Observation Services

OBSERVATION SERVICES

AND UNITS

Meet Quality

Indicators

Decrease errors

Increase ED throughput

and efficiencies

Decrease patient costs

Decrease unnecessary admission

Increase case mix

index

Avoid 30 day

readmit penalties

RAC Avoidance

Increase patient

satisfaction

Avoid Diversions

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour.

1414

Advantages of Observation Services

OBSERVATION SERVICES

AND UNITSDecrease

errors

Increase ED throughput

and efficiencies

Decrease patient costs

Decrease unnecessary admission

Increase case mix

index

Avoid 30 day

readmit penalties

RAC Avoidance

Increase patient

satisfaction

Avoid Diversions1. Meet 2014 CMS quality indicators:

Meet Quality

Indicators

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour.

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1. Meet 2014 CMS quality indicators:

• Median time from admit decision time to time of departure from the emergency department (ED) for ED patients admitted to inpatient status.

• Median time ED arrival to time of departure from the emergency room for patients admitted to the facility from the ED.

• LWBS < 2%

Advantages of Observation Services

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour. Avg. bill $2000.00 10% 50000 visists = 1 million dollar loss

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ED Throughput

ED 2b

Median time Patient spent in the ED after the Doctor decide to admit them as an inpatient before leaving the ED for their inpatient room

National Average= 98 minutes

If observation patients are using inpatient beds it backlogs the ED

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Advantages of Observation Services

OBSERVATION SERVICES

AND UNITSDecrease

errors

Increase ED throughput

and efficiencies

Decrease patient costs

Decrease unnecessary admission

Increase case mix

index

Avoid 30 day

readmit penalties

RAC Avoidance

Increase patient

satisfaction

Avoid Diversions

2. Avoid EMS diversions

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour.

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Advantages of Observation Services

2. Avoid EMS diversions• EMS is a business and healthcare partner• The national average for EMS ED volume= 15% -does any physician

group bring this volume to your hospital? • Admission rate for patients via EMS = 34% nationally- typically

higher acuity • Calculate for every hour the facility is on diversion lost revenue • Nine Boston area implemented a diversion ban in January 2009.

- What Happened?

– Hospitals volume rose 3.6 percent after the diversion ban BUT length of stay dropped 10.4 minutes for admitted patients, while ambulance turnaround time decreased 2.2 minutes, according to a study in the December Annals of Emergency Medicine

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour.

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Advantages of Observation Services

OBSERVATION SERVICES

AND UNITS

Increase case mix

index

Avoid 30 day

readmit penalties

RAC Avoidance

Increase patient

satisfaction

Increase ED throughput

and efficiencies

Decrease patient costs

Decrease unnecessary admission

Decrease errors

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour.

2020

3. Decrease medical errors/liabilityGraff l., et al Impact on the Care of the Emergency Department Chest Pain Patient from the Chest Pain Evaluation Registry (CHEPER study) :1997. presented at SAEM

4. Increase ED throughput and efficiencies• Less boarding • Decrease LWBS• Decrease ED LOS

5. Decrease patient costsOn average Medicare paid nearly three times more for a short inpatient stay than an observation stay and beneficiaries paid almost 2x more. Memorandum Report: Hospitals' Use of Observation Stays and Short Inpatient Stays for Medicare Beneficiaries , OEI-02-12-00040

6.Observation services gives time needed to make a clinical decision

Advantages of Observation Services

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour.

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Categories

ADDITIONAL TESTING Chest pain- serial biomarkers

Syncope-resolveAbdominal pain-- serial WBC

SHORT TERM THERAPY Acute exacerbation of CHF- lasix, nitrate

Cellulitis – IV antibioticsA-fib- medications Asthma- nebulizers, steroids

Patients generally fall into two categories-diagnostic treatment versus short term therapy

Presenter
Presentation Notes
Patients placed in observation services usually fall into two categories 1, need additional testing or short term therapy

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Advantages of Observation Services

OBSERVATION SERVICES

AND UNITS

Avoid 30 day

readmit penalties

RAC Avoidance

Increase patient

satisfaction

Increase case mix

index

Presenter
Presentation Notes
Ems health care partner and business partner volume 15,000 to 18,000 per hour.

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7. Increase case mix index

low acuity patients will dilute the CMI

8. Avoid 30 day readmit penalties

If a patient presents to the ED within 30 days of an inpatient admission and can be safely treated in an observation setting this always the facility to avoid the 30 day readmission penalty

Advantages of Observation Services

Presenter
Presentation Notes
30 day readmits, outpt. status

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786.59 OTHER CHEST PAIN

786.50 UNSPECIFIED CHEST PAIN

Low risk chest pain rarely will meet inpatient criteria per Milliman or Interqual criteria

The mean CMI for 786.59 =0.62 and 786.50 =0.63

CMI

CMI Higher Reimbursement CMI

Lower Reimbursement

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9. RAC avoidance

The number one diagnosis for short one day inpatient stays is chest pain. All one day inpatient stays are vulnerable to RAC audits.

10. Increase patient satisfaction

Patients will not need to miss work for an additional follow day for stress testing, etc. Need to know age….. We want it now.

Not included in VBP but has halo effect.

Presenter
Presentation Notes
How much is RAC costing your facility?

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Where do I Begin to Start an Observation Service Line ?

1. Identify the current processes……………..yes, flowcharts

2. Use quality tools

3. Establish metrics to validate successes

4. Create a team — who is on the team and why???

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Assembly a Team

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Finance

Must be an expert in Observation billing

Must capture charges as well as time

Team Members to Assure Observation Unit Success

IT

Can the facility's software accommodate observation documentation?

Do not use the inpatient model-overkill, will cost staffing time

Administrative Champion

Where does the buck stop?

• Observation Medical Director

• Observation Nursing Director

Facility Director

Addresses space issues

• Where is the unit located?

• Capital equipment expenses

Staffing Model

ED nurses rotate or dedicated staff??

Presenter
Presentation Notes
Crave out hours/ E&M code Finance person - it may take some doing to find that guy and usually they’ll tell you they are an expert already IT - need new documentation…if not new orders Admin - people need someone to complain to Facility director - could be the same as the ED Staffing s/ physician billing/ share staffing experiences /capture charges

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Pharmacy

Must have protocols regarding patient taking home meds within OBS setting

Team Members (cont.)

Case Management

Utilization

Education

Additional education for nurses/physicians to understand observation status

Laboratory

Turnaround time for labs will directly effect LOS

Stress Lab Director

Turnaround time for stress testing will effect LOS

HIM

Hospital Health Information Management

Presenter
Presentation Notes
Crave out hours/ E&M codes/ physician billing/ share staffing experiences /capture charges Pharmacy….i think the key here is making sure everyone is on the same page with regulations about taking home medications Case management will say, why can’t everyone go to obs Education using the CNS appropriately will be key here particularly in cases like TIA Non invasive testing

3030

Finance

This means any testing where the patient is monitored by another professional

In the Centers for Medicare and Medicaid Services (CMS) Change Request 5946 Transmittal 1445, under Reporting Hours of Observation, it states:

Observation services should not be billed concurrently with diagnostic or therapeutic services for which active monitoring is a part of the procedure (e.g., colonoscopy, chemotherapy)

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There is not software product currently available to accommodate observation documentation requirements

Information Technology/Clinical Documentation

There are software products to capture charges

BUT

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•Document Emergency H&P- if not admitted under Emergency medicine group need new H&P

•Separate Observation documentation- Order to place patient in observation status time and date

- Note medical necessity and risks

- Treatment plan

- Progress notes regarding ongoing care

- Discharge note should include:

• Final exam

• Course of treatment

• Final diagnosis

• Final disposition

Documentation Requirements/HIM

3333

Documentation Requirements — Nursing

• CMS does not specially address nursing documentation for observation services

• #1 Mistake – Facilities require nurses do a complete nursing assessment

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Administrative Support

Strong Medical and Nursing Director- gatekeepers

• Help develop and support inclusion and exclusion criteria

• Conversations with physicians to educate

• No boarders!!!

• Metric presentation to administration to support resources and cost savings of observation unit

• Educate staff

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Facility Director

Where will you place the Observation unit?— depends who is providing medical oversight

Functional Facility Design

Capital Equipment

- all beds should be telemetry

capable

Need Dedicated

Space

3636

• Account for the frequent admissions and discharges

• One position must be accountable for charges

• Think about the right hire for this position? Medical-Surgical nurse versus ED nurse?

• Must have an orientation module for Observation Nurses

Nursing Staffing Model

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• A 2003 survey reported that units were staffed with an average 4.2 patients per nurse

- Reality -5- 6 patients per nurse depends on types of patients admitted to the unit

• 21.4% used associate providers (physician assistants or nurse practitioners)

• ACEP endorses Emergency Medicine oversight of observation unit

• Many facilities use mid-level providers to cover the units as physician extenders

Staffing

Mace SE, Graff L, Mikhail M, Ross M. A national survey of observation units in the United States. Am J Emerg Med. 2003;21:529–53

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In a physician work-time study by Graff:

- the typical ED patient required 22 minutes per case

- observation patients required a total of …58 minutes per case

Although these patients are requiring less than one half of the amount of emergency physician service per hour (amount of work divided by length of stay), their total amount of emergency physician work required is more than double the overall average ED patient.

Graff estimated that for every 3000 patients observed, one physician full time equivalent (FTE)

Physician Staffing

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Some drugs are not chargeable — pharmacy has this list

Example:

• Patient do not need prn nasal spray for < 24 stay

• OTC vitamin D, etc.

Have pharmacy take ownership over this process. Med reconciliation will usually not correspond with patient’s meds ordered while in observation

Pharmacy

4040

• UR person needs to be assigned unless the staff is educated enough to understand when to call UR for utilization questions

• Social work must be accessible - if patient has SW needs question if they are appropriate for observation services – complexity of patient

• Consults in observation should be rare. – the more consults the longer LOS

Case Management

4141

• All staff must be educated regarding observation services

• Scripting regarding observation – not “we are going to admit you”

• Must understand the goal of less than 15 hour LOS – it is all about throughput

• Educate physicians, stress lab and central laboratory

Education

4242

• Observation provides cost avoidance value as well as revenue

• Must change your processes

• Observation is a service line

• Presents metrics both current state to administration and potential opportunities for revenue

• Present a business plan

• Start slow with top 5 diagnosis – easy observation until you work out processes

• Need physician champion who “gets it”

Summary

DARICE ALLARD RN,MSA,FABC,CPHQ

Top Ten Opportunities With “Observation”

per the SCPC Accreditation Review Specialists

4444

#1 Understand what “Observation” is and is not….

• These are outpatients.

• “a well defined set of specific, clinically appropriate services, which include ongoing short term treatment, assessment, and reassessment before a decision can be made regarding whether patients will require further treatment as hospital inpatients or if they will be able to be discharge from the hospital”.

-Centers for Medicare and Medicaid

• Time period to “rule-out”, “rule-in” or provide short term therapy

• Is a service- not a status• Awareness of patient- may

look identical but care is not

4545

• Inclusion/exclusion criteria

**Cardiac**

Low risk ACS population, A fib, Heart Failure

• Other most appropriate inclusions- COPD, Asthma,Syncope, TIA

#2 Understand the appropriate patient populations…

Presenter
Presentation Notes
You can’t just put anyone in observation, Diagnoses most appropriate Other common ones- dizziness, cellulitis, asthma

4646

#3 Patients need to managed differently…

• ….for rapid, effective evaluation of these patients

• Condition-specific protocols

-order sets, protocols, processes

• Not holding area waiting for a bed

• Who is the gatekeeper?

• All, including patient, needs to understand LOS expectation

Presenter
Presentation Notes
When observation is leveraged for maximum efficiency, pts presenting to the ED with common disease processes can be effectively treated in a timely manner. You can’t treat pts like an inpt and expect different results. Physician accountability

4747

• All, including the patient, need to understand the LOS expectation

• Fast paced work

• Dedicated staff with critical thinking skills

• Rounding is core to staying on topof these patients.

#4 Think in terms of hours…not days…

Presenter
Presentation Notes
Round on sickest pts first typically

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# 5 Multi-disciplinary care effects plan of care…

Patient

Central Lab

Physician

Stress Lab

Nursing

Case Management

PharmacyPhysician Leadership

Nursing Leadership

Risk Stratification

Serial EKGs

4949

#6 Difference in documentation and charging…

• CMS Physician documentation requirements clear

• CMS nursing documentation requirements – must have nursing documentation but why do a complete inpatient assessment?

• “Observation services should not be billed concurrently with diagnostic or therapeutic services for which active monitoring is a part of the procedure (e.g., colonoscopy, chemotherapy)”

-CMS Change Request 5946 Transmittal 14445

• Outpatient is APC codes- not DRGs so not bundled. Are you capturing your charges?

• EDUCATE STAFF- include Finance!

Presenter
Presentation Notes
ED did all the essential components- do a focuses assessment, means any testing performed by another professional

5050

• Schedule follow-up appointments

• Teachable moment with the low risk patient r/t risk factors

• Close the loop- compliance achieved?

#7 Importance of discharge education….

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# 8 Location, location, location…

• Variety of settings

• Efficiencies for all to group patients in dedicated location

• Also a bed, is not a bed, is not a bed…

-Observation Unit?

-Clinical Decision

Unit?-Chest Pain

Unit?

5252

#9 Need metrics to track “runaway” hours….

• What process and quality indicators?

• Dashboard concept

• Whose responsibility?

• What committee?

5353

#10 Effective solution to many facility issues…

• Increased Throughput/Patient Flow/LOS

• Decrease readmissions

• Increased patient satisfaction

• Cost avoidance/cost reduction model

Presenter
Presentation Notes
Reduce inappropriate, costly inpt admissions while avoiding the potential of inappropriate discharges -want to provide the best possible pt care in a value based purchasing environment were quality , cost and pt satisfaction must continually be addressed.

Goal: Most appropriate level of treatment,

to the most appropriate patient, in themost appropriate location while

controlling costs.

Thank you From the Accreditation Review Team