WV HEALTH CARE AUTHORITY TELECONFERENCE

MEDICAL REHABILITATION

CON STANDARDS MEETING

10/27/20081:00PM ET

 

SONIA CHAMBERS:  I’m Sonia Chambers, Chair of the West Virginia Health Care Authority.  I have here with me the rest of the complement of the board, all three of us, Marilyn White and Sam Kapourales [phonetic].  We are happy to be conducting these meetings.  The, some of you have heard this, now, for, what, six or seven times, those of you who have been to all the meetings, but these meetings are being held partly a joint agreement with the legislative select committee on looking at Certificate of Need, generally, and our agency.  We are holding them to, you know, as you know, Certificate of Need is being reviewed by the legislature as to whether it should continue or not, whether all the services subject to its review should continue to be reviewed or not, and so we are holding a series of meetings to get, to get stakeholder input as to whether Certificate of Need should continue to exist for different sets of services.  Today we are going to talk about rehabilitation and what I’d like to do is have Dayle Stepp, we are going to go around the room and identify ourselves and, also, those on the phone, and then Dayle is going to, basically, go over, well, briefly, I guess, go over the Certificate of Need standards and then we’ll just open up the floor for discussion.  So why don’t we start over here?

 

VICKY JOHNSON:  I’m Vicky Johnson [phonetic].  I’m the CEO of HealthSouth Western Hills in Parkersburg.

 

RAYMONA KINNEBERG:  Raymona Kinneberg [phonetic], Bill J. Crouch and Associates [phonetic].

 

WALTER SMITH:  I’m Walter Smith.  I’m Director of State Regulatory Affairs for HealthSouth Corporation.

 

MIKE ZULIANI:  I’m Mike Zuliani [phonetic].  I’m the CEO at Huntington, West Virginia HealthSouth Rehabilitation Hospital.

 

SHARON BOGGESS:  I’m Sharon Boggess [phonetic] and I’m the CEO at HealthSouth Southern Hills in Princeton.

 

JILL MCDANIEL:  I’m Jill McDaniel [phonetic].  I’m with the West Virginia Hospital Association.

 

VICKY DEMERS:  I’m Vicky Demers, the CEO at HealthSouth Morgantown facility and also Fairmont.

 

NORA MCQUAIN:  I’m Nora McQuain [phonetic].  I’m Director of Facility - - and Residential Care for the Bureau for Medical Services Medicaid.

 

LINDA GRAHAM:  Linda Graham with Charleston Area Medical Center.

 

MIKE WILLIAMS:  I’m Mike Williams.  I’m the Vice President of  CAMC General Hospital.

 

SHEILA KELLY:  I’m Sheila Kelly, Certificate of Need Division with the Health Care Authority.

 

DAYLE STEPP:  Dayle Stepp, Director CON.

 

CINDY DELLINGER:  Cindy Dellinger, West Virginia Health Care Authority.

 

NANCY MALECEK:  I’m Nancy Malecek [phonetic] from the Insurance office - -.

 

SONIA CHAMBERS:  Anybody else?

 

ED HAMILTON:  And Ed Hamilton with Mountain State Blue Cross/Blue Shield.

 

SONIA CHAMBERS:  And who do we have on the phone?

 

PHIL WRIGHT:  Phil Wright at the Health Plan.

 

SONIA CHAMBERS:  Phil has been at all the meetings, too, so, and asks very good questions.

 

PHIL WRIGHT:  Uh-oh.

 

SONIA CHAMBERS:  Who else?

 

ANGELA SWEIGER:  Angela Sweiger [phonetic] with West Virginia University Hospitals.

 

SONIA CHAMBERS:  Anybody else?

 

FRANK WEBER:  Yeah, this is Frank Weber with Select Specialty Hospital here in Charleston.

 

SONIA CHAMBERS:  Anybody else?

 

FEMALE VOICE 1:  We are going to have a physician joining us sometime in the next 10 or 15 minutes.

 

SONIA CHAMBERS:  Okay, on the phone, okay.  All right.  Anybody else, anybody else on the phone?  Okay.  Dayle?

 

DAYLE STEPP:  Okay.  I’ll just run through this real quick.  Well, I’m not going to go through all the definitions.  We can all do those.  The need methodology is real simple.  It says there should be no more than 13 medical rehab beds for 100,000 population for the service area.  There are a couple of exceptions for this, for rehabilitation hospitals located on the borders they can request additional beds to provide for out of state populations and they have to document that through patient flow studies.  And another exception is an existing facility may add beds if they maintain an average occupancy rate of 85 percent for the prior 12 months period and they have a documented - -.  We go into the quality and generally it is you have to have the criteria for preadmission, job qualifications for all the key personnel, have its own utilization review committee, proper administration support, follow guidelines of CARF, which is Commission on Accreditation of  Rehabilitation Facilities, have proper linkages to other required services, and demonstrate those services and then, of course, you have to show that it is financially feasible.

 

SONIA CHAMBERS:  Okay.  And you—

 

DAYLE STEPP:  And the charts, one chart is just the 37 CO in-states and the types of beds that each of those states review - - rehabbers.  Twenty-four that do review rehab beds, thirteen that do not.  And then the next one is just a list of the hospital names and the number of beds and where they’re located.  And understand, now, that the Fairmont General Hospital, the HealthSouth Mountain View of Fairmont, and Mountain View, the Fairmont General is, probably, a duplicated number and that the HealthSouth at Fairmont Health, Mountain View at Fairmont and Mountain View Regional are, basically, run from the same location, right, just one CEO for both of those.

 

SONIA CHAMBERS:  So that means that … how many extra beds do we have on this count?

 

DAYLE STEPP:  I think there is 15 extra.

 

FEMALE VOICE 1:  Just delete the second line.

 

SONIA CHAMBERS:  Just delete the Fairmont General Hospital line.

 

FEMALE VOICE 1:  Because the Mountain View beds are at Fairmont General Hospital.

 

SONIA CHAMBERS:  Oh, I see, okay.  That brings the total 318.

 

DAYLE STEPP:  And down at the bottom there I just did a rough calculation.  Took the population for the state at 1.8 and at 13 beds per 100,000 you would need statewide 234 beds - - and this is because the border, some of the border hospitals have, have received extra beds because they do serve a, a large out of state population.  And even some of the other beds, other hospitals have received, have applied and received some extra beds because of their occupancy levels.

 

SONIA CHAMBERS:  And Dayle, do you know where we came up with that 13 per?

 

DAYLE STEPP:  Oh, it’s been around since ’92, I think.  I looked at several other states—

 

SONIA CHAMBERS:  So it was some national use rate?

 

DAYLE STEPP:  Right.  I’ve looked at several other states and, generally, their need calculation is based on an area, a planning area, or a state - - to the future population of that service area so—

 

SONIA CHAMBERS:  And how different do you think that would be than ours?

 

DAYLE STEPP:  Oh, I don’t know that it would be a whole lot different.  I haven't calculated that out on this but I think an area use rate or a state use rate would probably give you a better picture than what we have been carrying over since ’92 at the 13 beds.

 

SONIA CHAMBERS:  Did we have someone else join us on the phone?

 

DR. BIUNDO:  Yes, hi, this is Dr. Biundo from Morgantown.  I’m the Medical Director at the Rehab Hospital in Morgantown.

 

SONIA CHAMBERS:  Okay.  Spell your last name, please?

 

DR. BIUNDO:  Biundo, “B,” as in “boy,” “i-u,”  “N,” as in “Nancy,” “D,” as in “David,” and then “o.”

 

FEMALE VOICE 1:  Okay.  And when we get to comments in order to utilize the doctor’s time wisely we’d ask that he be able to speak first.

 

SONIA CHAMBERS:  Or else he just needs to volunteer first.  All right.  Okay.  So and these, these charts will be available on the website, right?

 

DAYLE STEPP:  Hopefully they’re out there now.

 

SONIA CHAMBERS:  Hopefully they are out there now, okay.  All right.  We are trying to provide all of this on the website.  Alrighty, well, let’s throw this open, then, for general comments.  Doctor, you can start.

 

DR. BIUNDO:  Yes, yeah, well, thank you very much.  Thank you for welcoming me here.  I just have a quick comment or I’m not exactly clear that, because I came in at the end part of this conversation, it was estimated there would be 13 rehab beds per 100,000 inhabitant, or 100,000 people, is that correct?

 

SONIA CHAMBERS:  That, those are the current, that’s the current use rate in the standards.

 

DR. BIUNDO:  Okay.  The only point I have to make is this is since 1992.  A lot of the rehab referrals systems that are in place depends on the referral source that is available and the type of interventions that they are able to do.  I have been in Morgantown since 1991 and in the last 10 years or so, or even less, in the last five years, there has been tremendous amount of more neurosurgical procedure interventions that are being performed at West Virginia University Hospital, for example.  And these patients are in dire need of rehab interventions so I think the 1992 criteria, it seems to be offset by the amount of resources, the amount of interventions, that are being performed here.  If you look at our trauma admissions in, in the acute care hospital at the trauma center it is tremendously much more increased from before.  And the needs of those patients is tremendously higher.  And that is what I notice from living this every single day so I think 13 beds are probably underestimating it.  I think we need, we need more rehab, if anything, in my opinion.

 

DAYLE STEPP:  How many beds do you currently have?

 

DR. BIUNDO:  Currently we have 80 beds in the Morgantown facility and we have 16 beds in the Fairmont facility so it is a 96 bed complex, basically.  But Fairmont is south of us, you know, but the acute complicated brain injuries and pediatric rehab but there is no one that really does pediatric brain injuries.  We are the only one in the state that does pediatric brain injury and spinal cord injury.  And to be able to do that you really have to have a staff that has become expertise in it, to have that expertise, and the only way we are going to be able to do that is if you have volume.  Like, we could read all we want, and study, and be certified, but unless you have the patients to continue to grow and learn from then you don’t have that level of expertise and that standard of care will always be suboptimal.

 

SHEILA KELLY:  Dr. Biundo, this is Sheila Kelly with the Certificate of Need Division.  I’m looking at your figures and it looks like your average length of stay is about 20 days.  With these complex neurosurgical procedures are you finding that your length of stay is going to be much more extended?

 

DR. BIUNDO:  Well, we struggle with that.  That is a good point, an absolutely good point.  There is always a, always a stress level to try to decrease the length of stay, to minimize, the insurance companies always want to decrease length of stay to decrease cost.  As the patients get more and more complicated, obviously, the length of stay will increase.  That length of stay is more global, it doesn’t reflect, necessarily, just our brain injury patients, our pediatrics or our adult population.  It reflects the whole hospital system in place, which includes orthopedic patients and patients with strokes, and amputees, and so forth.  You know, my, my contention is, and I say this humbly, is that since I have been here since 1991 and have been Director of this hospital since then, and dealing with catastrophic injuries, that in order to be really good at what you do you have to have a lot of these patients and you have to have staff to grow with you so that we all become more and more competent and more and more an expert.  And I think if we begin to have multiple hospitals that try to do this I think that the quality of care will suffer.  And I think, in my opinion, that, if anything, our hospital rehab patient will continue to grow because as WVU, which is sort of the flagship hospital in this area right now, continues to expand and become more refined, for example, they just started doing seizure, neurological seizure interventions.  In other words, neurosurgical procedures to oblate seizure focus in the brain.  That, that is relatively new and no one does this around here and we take care of those patients.  Now, those patients won't be best served to be going to other facilities and I, you know, I’m not trying to say that we are the best in the whole world, but we have learned and we continue to learn every day.  But I don’t think they will be served when they go out of the system.  For example, we have spinal cord injury patients that begin rehab here, they do well, and then they are discharged into the community, especially in our rural system that we have in place, and they do not get the same care because, obviously, it is not that they are bad people and they are incompetent, just that they are not used to taking care of spinal cord injuries in the outpatient rural physical therapy, you know, field.  They are not.  They will call and say, you know, I have never seen a spinal cord.  I haven't seen one since I was in PT school.

 

RAYMONA KINNEBERG:  If I can ask a question, this is Raymona Kinneberg and I’m here with - - people from HealthSouth.  Is what you’re saying that even though you anticipate that there will be more demand for people with higher acuity that they should stay at the facility that their, that is there now rather than adding a second facility in order to have the volume and the quality?

 

DR. BIUNDO:  Exactly, exactly what I’m saying because my, I see the problem being increase in volume but you don’t, you don’t treat that by creating more beds out of different hospital systems who are not trained or have experience in taking care of those patients because it would just be a disaster because those patients will come back with acute comorbidities, acute care transfers, and their outcomes will suffer.  And we know that.  We know that now, for example, because there has been tremendous stress of taking patients from the acute hospital into the skilled nursing facility and nursing homes because there has been a curtailment by the insurance company curtailing, in terms of these patients coming into the rehab hospital.  They would prefer these patients go to a lower cost of care but we see that because we see their acute care transfer go up, their quality go down, their complications and comorbidities go high, their mortalities go high.  We see that happening right now because, again, we took a patient that really needs to be in a standard care in a rehab hospital, an acute rehab hospital, and that patient now is going to a skilled nursing unit or a nursing home.  And that care cannot be provided in that system.  And what alarms me is that that same, that same model is being used right now to create different hospitals and eliminate the Certificate of Need because you are going to have patient who are going to places where they shouldn’t be in.

 

SHEILA KELLY:  I apologize for not knowing the answer to this.  This is Sheila Kelly again.  Your payer mix in terms of government payers is there a time limit or a DRG or how does Medicaid and Medicare decide what the payment is?

 

DR. BIUNDO:  Yes, we do have, we do have limitations in terms of length of stay and we have a DRG type system that limits in terms of the patient’s length of stay.  It also depends on the patient’s progress and their functional improvement.

 

SHEILA KELLY:  And can, do you have any idea what that average length of payer stay is?  I’m just curious.

 

DR. BIUNDO:  In terms of our payer mix here in terms of the rehab hospital?

 

SHEILA KELLY:  Well, particularly in terms of Medicare and Medicaid.  What tends to be the mean length of stay for your governmental payers?

 

DR. BIUNDO:  Ours, ours is Medicare, I would say 70, 75 percent.  I don’t know for certain.  I’ll have to clarify that.

 

FEMALE VOICE 2:  Dr. B they are referring to the RAND on our patients.

 

DR. BIUNDO:  Right, right, the length of stay and the RAND.  Well, it depends on each diagnosis then the RAND is, dictates the length of stay depending on each diagnosis.  For example, stroke versus a fracture of a, an extremity fracture, has a length of stay that we follow.  So it is specific to a disease.

 

SHEILA KELLY:  And it is my understanding that Medicaid doesn’t pay for rehab level of care?

 

DR. BIUNDO:  That is correct.  Yeah, Medicare covers only if you are under 21.

 

FEMALE VOICE 2:  Right, they’ll pay under 21.

 

FEMALE VOICE 3:  And based on your diagnosis mix, I mean, each hospital is going to have an average, for instance, mine is around 14 days and Morgantown’s is going to be higher because they definitely see a higher acuity just as he went through with spinal cord and having - - there.

 

MALE VOICE 1:  This is being typed.

 

SONIA CHAMBERS:  Oh, yeah, and also, we are, we are, we will have a transcript of this so if you’re going to speak please identify yourself so that your, your comments will be accurately attributed to you.

 

PHIL WRIGHT:  Sonia?

 

SONIA CHAMBERS:  Yes, Phil.

 

PHIL WRIGHT:  Phil Wright.  What, I still didn’t get my question answered.  What is the census in Morgantown?

 

DR. BIUNDO:  Well, in Morgantown our census is, of this morning I can't tell you for certain, but it is probably almost, well, we have Morgantown and Fairmont so I, I can tell you for sure in a few seconds.  I can run it and tell you.  But it, we, in Morgantown we try to get around 62 to 64 and in Fairmont maybe 16, 14 to 16 beds.  That is the average right now.

 

PHIL WRIGHT:  How many beds do you have full all the time on the average?

 

DR. BIUNDO:  Well, on the average we are having difficulties and the reason why we cannot is that we have had difficulties in terms of maintaining nursing numbers because in order for us to be able to take care of the appropriate number of patients we need the appropriate number of nurses and that is what has been restricting in terms of our ability to admit.

 

PHIL WRIGHT:  You said you have 96 beds in Morgantown and Fairmont.  How many of those beds are filled on the average?

 

DR. BIUNDO:  I’d say around 70 percent.

 

PHIL WRIGHT:  So you have capacity for more and you’re, you can't do it because of staff?

 

DR. BIUNDO:  Right.  At this point and in the last number of months that is what we have had our difficulties with.

 

PHIL WRIGHT:  So that is really  not a problem with the CON?

 

DR. BIUNDO:  No, no, sir.

 

PHIL WRIGHT:  And excuse me, I didn’t get, what are you, an M.D., are you an M.D.?

 

DR. BIUNDO:  Yes, sir.

 

SONIA CHAMBERS:  Okay, any other questions for Dr. B, I think, as you were referred to?

 

DR. BIUNDO:  Right.

 

SONIA CHAMBERS:  For him, do you have a question for him?  Okay.  Would you like to add anything else?

 

DR. BIUNDO:  No,  I’m, I’m good.  If you have any questions please feel free to call me. I can help as best I can.

 

SONIA CHAMBERS:  Okay.  Well, so you’re welcome to stay on the line if you have time and listen to the other comments or go back to patients, whichever you’d like to do.

 

DR. BIUNDO:  Okay.  Well, I can, I can stay on the line for a few more minutes. A patient should be coming in a few, in a few minutes.

 

SONIA CHAMBERS:  Okay.  All right.  Who would like to go next?

 

MIKE ZULIANI:  I’m Mike Zuliani.  I’m at HealthSouth Hospital in Huntington, West Virginia and a lot of the comments that I would make are similar to those of Dr. Biundo’s.  Specifically, one of the issues that we have is quality and looking at outcomes.  Number one, because it’s our reputation and we want to have a good product so the patients will come back and, number two, because the payers will continue to pay you for your services.  And we have all kinds of metrics and rankings that we look at to provide that quality and one of the issues we have in West Virginia is finding competent and qualified staff members who have the skill mix to provide this service to our, our patients.  I know several of my colleagues and I talk about the opening that we have had, whether it be for a podiatrist, an M.D., to come in, whether it is neurologists or even physical therapists and occupational therapists, and how long we have been recruiting to fill those positions.  And if you can successfully recruit those people and then you don’t have the volume to sustain their job there for them they’re going to come, they’re going to stay for a year, and then if you’re, if you don’t have the patients for them to see they’re going to get, they’re going to go along to the next hospital.  And then that is going to affect the quality of care that we’re providing our patients so that is a big issue that affects quality in the state of West Virginia.

 

SHARON BOGGESS:  This is Sharon Boggess and I’d like to piggyback on that slightly.  I think, I’m not sure who it was on the line a moment ago made a comment regarding staff and how that connects to CON.  I think that there is a definite connection because, for instance, with myself I have had a physical therapy position open for five years that I have been recruiting for.  If we did not have the review of the CON to look at necessity, which, of course, a piece of that is looking at staffing to be able to treat the patients that will go into those units and it does become an issue because there’s not enough staff to treat what we have now.  I have 60 beds.  My census this year has been averaging around 36.  As I mentioned, I have been recruiting for a position, PM and R, which is - - as a specialty, which is necessary in rehabilitation.  I have been recruiting for that for two and a half years.  When I look at our state and the programs that we have available and the students that are coming out of physical therapy and occupational therapy there is not enough coming out to support the beds that we have now to treat the patients that we have.  I also have the unique situation in southern West Virginia in that neurology and orthopedic coverage is very, very limited for me.  I am losing patients to North Carolina and to Virginia because I do not have physicians to treat them in the acute care hospitals in my area, which means I am going across the lines to recruit and get our patients back home for rehab, back into West Virginia, which becomes another issue of if the physician is not available in my area to treat those patients, which becomes even a greater risk, even a greater problem for us.  Staffing, physicians, and getting the patients back - - my admissions have tripled, this is through the end of August, my admissions tripled for the same time period the previous year of patients that were leaving for care.

 

PHIL WRIGHT:  Why are the physicians leaving, Phil Wright?

 

SHARON BOGGESS:  One is malpractice.  Secondly, is when they do get them in because there are such a limited number they are not staying.  They are staying for a period of a year or two, 18 months, and they’re back out.

 

DR. BIUNDO:  Can I add something, sir?

 

SONIA CHAMBERS:  Sure.

 

DR. BIUNDO:  This is Dr. Biundo from Morgantown, West Virginia, again.  One of the questions was why are physicians not staying.  It is multifactorial.  One of, the main factor is the fact that, that West Virginia is a difficult state for most physicians to practice in.  most physicians are not interested in going to rural states.  That’s number one.  Number two, as you mentioned, the malpractice is really high, when you look across the board, and the litigation is still significantly high.  Number three is the fact that to do complicated care of inpatient in the rehab hospital where you take care of very sick catastrophic injury patients is tremendously challenging and most physicians are not into being on-call every single night, or every other night, and every other weekend and they work long hours with complicated patients and it’s hard to recruit because every time you try to recruit a physician they don’t want to be on call, they only want to be on call once a month, so their lifestyle effect is what they are looking for.  And that also makes it more difficult.  One of the problems is if you take rehab patients who need a specialized specialist in what we do, and there is very few in the country that do what we do and, generally speaking, in the thousands.  When you look at it our space is extremely tiny and then you take these patients and you begin to disperse them across different hospitals there is not going to be enough volume of, for each specialist to take care of these patients because you, you will be dispersed in many hospitals versus a central or two or three major rehab hospitals where you can recruit easier PM and R doctors, physical medicine and rehab doctors.  So as you disperse the patient you are going to need a lot more specialists but what usually happens is that you can't recruit the specialist there because there is not enough volume to sustain them and what happens is that other people begin to take them, other specialists who don’t really take care of brain injuries and spinal cord injuries and amputees.  So again, this is one of the problems that we run into as we begin to dilute the patients across the state then you lose that expert focus on the patient.

 

PHIL WRIGHT:  When you say “sustain them” do you mean on a fee for service basis or do you mean as a salaried employee of the rehab facility?

 

DR. BIUNDO:  Oh, no, no.  It, in either component, either fee for service or even a salaried employee.  To, to really be able to get a salaried employee physician here, I have had, since I have been here, 1991, when I, when we opened the rehab hospital and then we opened the Fairmont Hospital, I have had six, a minimum of six physicians with me and the average stay was about two years, one and a half to two years.  And the reason was because it is too much work, it is hard for them to really be able to recoup their income and we, I paid for all that.  I paid, they, they were a partnership with me and they would stay and after two or three years they would become a full partnership but they, they, I couldn’t keep, I’ve had six physicians and right now I’m by myself with a total of, you know, 70 to 80 patients a day plus outpatients, plus the university, so it is really hard to recruit on a specialty, especially in this state in the current circumstances.  And it doesn’t matter if you are salaried or fee for service it is just hard to keep them.

 

PHIL WRIGHT:  Really you are talking about a problem that is beyond the CON regulations.

 

DR. BIUNDO:  No.  Yes, absolutely right, forgive me, but when I said “no” I’m saying that the CON would only make it worse because if you are already having a hard time recruiting physicians in our specialty to big hospital centers, next to university hospitals, and then you’re going to have a CON that is abolished and every hospital will take care of rehab patients with no expertise in it it is going to be even harder to recruit those, those doctors who are specialists in those little hospitals who are taking some rehab patients.  So you are going to wind up having patients who are taken care of by general internists who don’t know rehab fully.  And I don’t mean that in a demeaning way at all, forgive me, because there are a lot of things I need to learn, or every day I learn, you know.  But that is what happens and then you have other specialists who try to take care of a spinal cord injury or brain injuries and they are not really trained in it or, or qualified to do and that is going to be hard, again, it is going to just, creates a vicious cycle of not enough physicians, not enough rehab specialists, and the patients will go to hospitals and be taken care of by people who don’t really understand rehab fully, in the holistic picture.  To be able to do rehab, to be able to do rehab very well you need a whole team.  If you go to acute care hospitals you will see that they do have the different components.  They have PT, OT, speech and language, but they can't work together in a cohesive team.  The rehab hospitals do it well because this is what they are expert at.  This is what they have been doing since after World War II, you know, that’s how it all started.  That is why they have it down pat.  And when other people try to do it it always is miscalculated, it is all always unstable and doesn’t flow well.

 

PHIL WRIGHT:  Nobody is arguing that but if you can't maintain staff how cohesive a group could it be?

 

DR. BIUNDO:  Well, we, no, we do have it because you still have a central picture of a physician being involved, an integral part of it, and you still have the teams that work well together.  Yeah, we still have it, even right now.  If you come to our hospital here you, and you’re more than welcome to come anytime, you’ll see how the whole team works together and jells together, you know.  And again, I think the fundamental component, in my opinion, is that we have the patient.  The patient is the focus and this is how we learn.  This is how we will grow.  Every patient is a textbook for me and I learn from every patient.  And that is how the therapist learns.  But if you don’t have that exposure and that experience over time you won't be as good as it.  That is why we know that patients who get CABGs, open-heart bypass grafts, in hospitals who are expert at it, who do large volumes, they do well.  if you take these patients and put CABGs in hospitals that don’t do as many they don’t do as well.  It just, it is a natural thing.

 

PHIL WRIGHT:  I guess the question, Phil Wright again, the question for this meeting is should the CON be continued 13 beds per 100,000 with the two exceptions, or should it be increased, or should it be, the CON, be eliminated?  You’re definitely against elimination.

 

DR. BIUNDO:  Yes.

 

PHIL WRIGHT:  So what are you for, increasing or maintaining?

 

DR. BIUNDO:  Well, so, this is Dr. Biundo, again, I’m sorry.  If I’m talking too much just tell me to shut up and I’ll leave, okay.

 

PHIL WRIGHT:  You’re not talking too much.

 

DR. BIUNDO:  I’m kind of getting out of hand here.  I’m getting too verbose.  You know, in my opinion, I think I would leave the Certificate of Need the way it is.  looking at the circumstances and leave it, the Certificate of Need is necessary.  That is my opinion.  And without getting too greedy or anything like that because I think, in my opinion, because of the circumstances of, you know, the cuts and, who knows, in Medicare, with the war, there is so much political pressure right now that we’re lucky we have what we have right now, you know.  So I think at this point is that we can even better doing what we do.  We can get more efficient.  We can see more patients and we can provide better care.  And that is on our, that is our responsibility on our side.  We are accountable on that side.  But in my opinion, again, humbly, is that Certificate of Need needs to be in place.  That no, I think that only hospitals who really do this stuff really can do it.  No one else can just do it because they, they want to do it all of a sudden.  And because with the hospitals will do it because they want volume and they want money but they won't provide the best care.  Because they will look at it like, okay, I’m a little hospital in the middle of nowhere, here is a brain injury patient that comes in, so you’re going to take a 14-year-old pediatric brain injury, I’m getting today, and you’re going to bring him into a rehab hospital, they call themselves, when they have no experience, no therapists, I mean, I think that’s, that’s bad.  I think that is dangerous.  I think that is a crime.  I think that is a sin.  That is my opinion and I’ll shut up now.

 

SHARON BOGGESS:  This is Sharon Boggess again.  I think another important piece to point out is a fight that we’ve had as, not a fight, if you will, in rehabilitation with a 75 percent rule, and we are very grateful that was back to 60 percent and held at 60 percent, but what that does  under Medicare and CMS that 60 percent of our patients must fall into 13 categories.  Well, that limits you even more, which means you don’t need an increased number of beds because you’re already limited on what you can treat in rehabilitation to remain under Medicare funding.  Which makes it even more difficult, especially, again, for myself when I have patient who have been getting those - - or your neurology-type diagnosis, to fit into that 60 percent, which is difficult in itself, as well.  so that also poses even more of a challenge to rehab and what we have to fill our beds with to receive Medicare funding.

 

SONIA CHAMBERS:  Well, is that, this is just sort of for anybody.  I was sitting here thinking about what you were saying and as, as I recall, from our prior annual report, rehabilitation hospitals, particularly the, the for-profit ones, fair financially quite well in the state.  In the 20 percent return category, which, I would dare to say, that most acute care hospitals would kill for that kind of return.  So I understand that it may be difficult, in some cases, but financially it doesn’t appear to be that difficult, in many cases, based on our annual report figures from the past couple of years.

 

PHIL WRIGHT:  Are rehab facility rates controlled by HCA?

 

SONIA CHAMBERS:  No, they are not.

 

ED HAMILTON:  And what’s the reason for that?  This is Ed Hamilton of Mountain State Blue Cross/Blue Shield.  Why are their rates not controlled?

 

SONIA CHAMBERS:  I don’t know that I honestly, were they ever controlled?  I don’t think they ever were.  I think it was really acute care hospitals on the non-governmental side.

 

ED HAMILTON:  Is there legislative power under the code to do that?

 

SONIA CHAMBERS:  No.

 

ED HAMILTON:  Since I’m already speaking the other question I have is related to the definition of service area.  Does the service area as defined in the CON piggyback on something else or does the applicant - - their own or shouldn’t there be, has there been, a definition of service area as used in the CON?

 

DAYLE STEPP:  This is Dayle.  Generally, they present their own service area and I think several of the facilities have used a 25/10 service area like you use for general acute care hospitals but because they are more or less of a specialized service they may have a different service area than would a general acute care hospital.  So they generally present their own service area and document why they are using that particular service area.

 

FEMALE VOICE 4:  Brenda - -.

 

BRENDA:  Wait until he comes back in.

 

FEMALE VOICE 4:  Because I know he wants to talk about the 75 percent rule and also some issues related to our ability to accept patients because of our fiscal intermediaries.

 

SONIA CHAMBERS:  But that has nothing, really, to do with Certificate of Need, does it?

 

FEMALE VOICE 4:  Only from the perspective of why their, why the occupancy rate isn't what we think it should be.

 

SONIA CHAMBERS:  Okay.

 

PHIL WRIGHT:  Phil Wright, again.  Are any of the rehab facilities owned or partially owned by acute care facilities?

 

DR. BIUNDO:  Yes.  That is Dr. Biundo, again.  Can I, here in Morgantown our, our rehab hospital is 10 percent owned by West Virginia University and 10 percent owned by Martingale General Hospital, which is the private hospital right next to us, as well.  So it is 80 percent owned by a corporation and the other 20 percent is split between the local hospitals here.

 

PHIL WRIGHT:  Okay.  Is the rest the rehab?

 

DR. BIUNDO:  The rest, the rest of the hospitals, the rehab hospitals in West Virginia, I think, are probably owned by the corporation but I’m not 100 percent but I’m pretty sure.

 

MALE VOICE 2:  That’s right.

 

FEMALE VOICE 5:  That’s correct for the HealthSouth facility.

 

DR. BIUNDO:  For HealthSouth.  That is for HealthSouth.

 

SONIA CHAMBERS:  CAMC, obviously, owns its - - and then Logan owns it eight, and then Peterson owns 22?

 

FEMALE VOICE 5:  Yeah.

 

SONIA CHAMBERS:  Actually, I’m, I’m curious.  Phil Wright and Marilyn, in the northern panhandle what, what do you do for rehab patients?  Where do they go?

 

MARILYN WHITE:  Phil, go ahead.  Where do you send them?

 

PHIL WRIGHT:  I often, west or north, out of the state.

 

DR. BIUNDO:  You meet up, I’m, I’m sorry.  I’m sorry.

 

MARILYN WHITE:  You don’t send them to Morgantown?

 

PHIL WRIGHT:  Some go to Morgantown, yes, HealthSouth.

 

MARILYN WHITE:  Okay.  When I was still in that business Morgantown and Pittsburgh were the two locations that when we had an acute rehab that they go.  Actually, Pittsburgh, we sent more to Pittsburgh than we did Morgantown.

 

SHEILA KELLY:  I have a question, since we are waiting for CAMC.  I have heard a spirited discussion when I came in about fiscal intermediaries and I have no idea how that applies in this setting.  Could somebody explain that to me?  This is Sheila Kelly admitting my ignorance.

 

PHIL WRIGHT:  What was the question?

 

SHEILA KELLY:  What, what is the role of a fiscal intermediary in a rehab facility?

 

MIKE ZULIANI:  Yeah, they, this is Mike Zuliani from HealthSouth in Huntington.  The fiscal intermediary is assigned to you.  We don’t have a choice of who our fiscal intermediary is but they’re the ones who process the payments.

 

SHEILA KELLY:  For Medicare or Medicaid.

 

MIKE ZULIANI:  They, it’s kind of like, for lack of another word, if Medicare subcontracts out who is going to handle the payments that our, what we call our FI, our fiscal intermediary, and they have rules.

 

SHEILA KELLY:  So is there a carve out for Medicare for rehab programs?  Like, I’m familiar with behavioral health and Palmetto pays all of Medicaid and Medicare’s behavioral health clients so is it similar to that?  It’s your administrator?

 

[Crosstalk]

 

SHEILA KELLY:  And does everybody have exactly the same FI or it depends on what region you’re in?

 

MIKE ZULIANI:  In just discussing with the gentleman from Charleston and they have a different fiscal intermediary than we do in Huntington.

 

SHARON BOGGESS:  Huntington and, this is Sharon Boggess, Huntington and Southern Hills are in Princeton and Morgantown, I think, Vicky in Parkersburg, as well, we all have Cobis [phonetic] as our fiscal intermediary so.

 

SHEILA KELLY:  And do they each have different policies?

 

MIKE ZULIANI:  I don’t believe so.  I think they are all—

 

SHARON BOGGESS:  [Interposing] You wouldn’t think but in the discussion today it has been very interesting in how they’re different.

 

SHEILA KELLY:  So there is a different interpretation - -.

 

RAYMONA KINNEBERG:  This is Raymona Kinneberg.  The fiscal intermediary for Medicare it’s, it’s similar with other facilities.  For example, some nursing homes in the state have United Government Services, some have somebody else, so it’s, it, sometimes it’s dependent upon geographic location.  In some programs corporations that have multi-state facilities are allowed to have one fiscal intermediary for all of the programs and sometimes you have got one fiscal intermediary for, say, a hospital based and then you have a home health and you have a different fiscal intermediary for that.  So it, it, but there, it, it can only be one of the intermediaries that is designated by CMS to be—

 

SHEILA KELLY:  So they basically do utilization management and prior authorizations and that kind of payment process?

 

[Crosstalk]

 

MIKE ZULIANI:  They just process claims.

 

SHEILA KELLY:  Process claims, okay.

 

CINDY DELLINGER:  I have a question.  This is Cindy Dellinger with Health Care Authority.  What is HealthSouth’s charity care policy, HealthSouth’s charity care policy?

 

FEMALE VOICE 2:  Case by case basis, well, unfortunately, I will say, a lot of it is Medicaid because West Virginia Medicaid will not cover inpatient rehab.  So probably 95 percent of my charity care is patients that do have Medicaid but will not cover it.  So it is on a case-by-case basis.

 

SONIA CHAMBERS:  So there is no standard income determination?

 

FEMALE VOICE 2:  That may be facility-based.  There is not a standard across the board.

 

CINDY DELLINGER:  I’m sorry, there’s not, there’s not one policy, company-wide?

 

WALTER SMITH:  This is Walter Smith at HealthSouth.  We do have policies for treatment of charity care patients.  Now, there is several jurisdictions, CON jurisdictions, that we operate and require charity requirements, Virginia, Georgia, has a 3 percent.  And we meet them on an individual state-by-state basis and, generally, you exceed those, too.  But there are policies that we have of sort of how you would treat a patient coming in that is a charity patient.

 

FEMALE VOICE 2:  And how it fits into that, into that would qualify.

 

MARILYN WHITE:  Phil, this is Marilyn.  I have a question for you.  Do private, private payers still have a calendar year limit on days for rehab like this?

 

PHIL WRIGHT:  Well, we have so many different programs I’ll have to look, Marilyn.  We have Medicare, we have Medicaid, we have commercial, they are all different.

 

MARILYN WHITE:  No, no, no, not Medicare or Medicaid, your commercial business.

 

PHIL WRIGHT:  Yeah, I’m, I’m not sure without checking. I’d have to check.  Want me to check right away?

 

MARILYN WHITE:  No, I was just curious.  I know they used to.  It used to be, you know, probably a 34 max you were lucky.  Anywhere from 24 to 30 days per year.  We all here, do you all three, you deal with it, maybe you can answer it?  Like, let’s say someone had health plan insurance do you know what their limit is?

 

PHIL WRIGHT:  On commercial.

 

[Crosstalk]

 

MARILYN WHITE:  Yeah, Ed, do you know what Blue Cross does?

 

ED HAMILTON:  It varies by plan.  My recollection is there’s probably not very many plans that are less than 60 days but what you run into is medical necessity guidelines, which is basically the same guideline that Medicare uses.  Once the patient fails to show improvement then officially their care is no longer medically necessary and they need to be transferred to another type of care so, you know, the length of stay that we see here are, you know, indicate, basically, what you would normally see on the commercial side, too.  You know, 10, 20, 20 days on the average.  Usually people don’t exhaust their benefits on it.  They usually fail to improve at some point and get transitioned to another type of care.

 

SHARON BOGGESS:  This is Sharon Boggess again.  Typical of what we see is that initial pre-cert of seven days, hardly ever beyond that and it is continual update thereafter.  It is never really much longer than seven days.

 

SONIA CHAMBERS:  Now that you’ve rejoined us.

 

MIKE WILLIAMS:  Sorry about that.  My name is Mike Williams.  I’m the Vice President of General Hospital and we have a 40-bed rehab facility at General.  The fact of the matter is the rehab industry is in a state of chaos, really.  The recovery audit contractors are sniffing all over the place and we are kind of preparing for them to come to Charleston but in Charleston we have been running an average daily census of about 15 patients and the reason for that is because our fiscal intermediary has mandated that we do perform one-to-one therapy, which is not being done across the country.  And in other words, a therapist cannot work with two patients at the same time.  HealthSouth can do it but CAMC is not allowed to do it.  We have, we have different, I thought we had the same fiscal intermediary. We have a different fiscal intermediary and we have bumped this all the way up to their medical director and they are limiting the number of patients that we can accept.  And it is at the tune of three, or four, or five million dollars, I mean, it is unbelievable.  So we have, you know, 25 unused beds right now because we are held to a different standard.  We have, we have got a lawyer in Washington that, that’s, you know, that has been communicating with Medicare.  We really can't get a definite ruling on this from, from Medicare to the fiscal intermediary.  Our Medical Director, Dr. Wright, has spoken to Dr. Cope [phonetic] and Dr. Cope, has, you know, he will not put anything in writing but they basically tell us you have to do one-to-one therapy.  Now, no one in this room is doing one-to-one therapy.  But because of the number of therapists that we don’t have, we don’t have enough to do that, and the fact that we have to do one-to-one therapist it’s, it’s thrown our program in chaos.  It, so I am not in favor of changing the standards one bit.  As a matter of fact, I think they’re fine.  I think what we are going to see in the next year, year and a half, is there is going to be less patients in the rehab facilities because of the recovery audit contractors coming in and, for example, we can't admit hip fractures to our rehab facility.  We can't admit total joint replacement patients to our rehab because of fiscal intermediary said “no.”  So we are under, we have lost two doctors, we are down to two.  We have got a plan to, you know, we’re trying to recruit two but it is very hard to recruit.  But I think what we are going to see is less of a need for beds in West Virginia because of what is coming down from the national level.

 

SONIA CHAMBERS:  Where do they suggest that those joint replacement patients go?

 

MIKE WILLIAMS:  To nursing homes or home unless they really have a lot of medical comorbidities, you know, we can't, we haven't admitted those for two years now.  So the bilateral, the bilateral, you know, knee replacements or hip replacements, now, those type of patients is probably okay.

 

FEMALE VOICE 3:  I thought that was part of the 13 or 11 required patients?

 

MIKE WILLIAMS:  We know, we comply with the 60 percent rule and everything but they will, they have been, we have been under unbelievable scrutiny on these cases so we haven't been admitting them.  We probably have been a little bit more conservative than we should have been.

 

SHARON BOGGESS:  This is Sharon Boggess again and just as an example, since the single joint piece started, if you will, denials, we have a total of 96 cases that were denied.

 

SONIA CHAMBERS:  Because it was only one joint?

 

SHARON BOGGESS:  Yes.  And when they went, they went all the way to—

 

SONIA CHAMBERS:  [Interposing] If you are going to break something break two of them?

 

MIKE WILLIAMS:  Bilateral, yeah.

 

PHIL WRIGHT:  Who is denying these again?

 

SONIA CHAMBERS:  What, Phil, what did you say?

 

PHIL WRIGHT:  Who is denying these?

 

SONIA CHAMBERS:  The intermediary.

 

PHIL WRIGHT:  The intermediary for Medicare?

 

SONIA CHAMBERS:  Yes.

 

MIKE WILLIAMS:  NGS is our fiscal, Mike Williams, NGS is our fiscal intermediary.  So we have, what we have going on in Charleston, we have, because we cannot admit these patients we have these, HealthSouth coming in and taking patients out of our facility.  It is unbelievable.

 

FEMALE VOICE 2:  We’re not complaining.

 

MIKE WILLIAMS:  I know.

 

[Crosstalk]

 

MIKE WILLIAMS:  And we’re, we’re glad our patients have a place to go but it’s, you know, our net numbers is about $20,000 that, per patient, and it is just, like I said, three, or four,  or five million dollars.

 

MIKE ZULIANI:  This is Mike Zuliani at Huntington, again, HealthSouth.  I agree with what you said in terms of it getting more and more difficult when you suggest that maybe we are going to need less rehab beds because of what the - - I would also suggest, though, that since this study was done it would be interesting to me to see what the average lifespan, you know, the average age of patients were at that time versus what it is now, what it is going to be in the future.  Summarily, what I’m suggesting is that with the baby-boomers and people who are living longer because of technology and those are typically the people who would need our services so I agree with what you’re saying that we might see a - - but it might be the opposite because of this other phenomenon that I’m saying.  I would also, if I had a calculator, very quickly in my head, look at the occupancy use of this document that was provided to us and see if this occupancy percentage as a whole would equal what 13 beds per 100,000 would project because it says here 234 and it says we have 318 and it might be right on the money and that would just be a quick litmus test of how good that 13 was whenever it was - -.

 

RAYMONA KINNEBERG:  Yeah, this is Raymona Kinneberg.  One of the, one of the problems with that is that the occupancy includes people from out of state and so you’ve got a projection, particularly when you look where the rehab facilities are, that is, that may be a larger population than what, than the 1.8 million.

 

MIKE ZULIANI:  Right, I understand.  It still might be just a good guideline to see.

 

SHARON BOGGESS:  This is Sharon Boggess again and I just want to give this as an example.  We have a hospital in another state that is a non-CON state, in Arkansas, and this is just an example of, of, it kind of goes back to quality, the quality piece.  They are located right on the site of an acute care hospital and that acute care hospital was their primary feeder of patients.  It was just about 45 percent of their business from that hospital.  Yes, HealthSouth is a for-profit company and, you know, we are proud of that and we make money and that is what, that is what we do, and, obviously, they saw that and they opened their own rehab unit.  The Fort Smith Hospital was - - of averaging around 40 and they were 16 this morning.  And what I see from that is loss of job because out of all those people from Fort Smith Arkansas Hospital to be absorbed into that new rehab unit that was opened so it was a loss of job and it wasn’t about a need, it was about grabbing something else that they wanted and that’s my fear when you have non-CON that’s what starts happening is it is not thoroughly thought through.  Another example is down where I am there was a, a, some work at a hospital in my area and one of the topics that came up I completely objected to and I talked to the individual at the hospital that was looking at that and said why I did and what I thought that would mean for us.  They didn’t go that route and I’m grateful they didn’t.  And when it was all said and done that person said, “You know, when I look back on it now that was probably the best thing that we didn’t go that route and we’re going the direction we’re going now.”   And I think when we have the CON process it allows that opportunity to fully look into it to see what are the needs because it is about patients and it is about needs in your state and it is about taking care of staff that needs jobs and families.  And when you start flooding markets with things that we don’t need because someone sees it as profit, you know, so many other things get hurt in the process and I’m grateful for the CON process, very grateful for it.  I think it is a very good thing and I think we definitely need to keep it.

 

PHIL WRIGHT:  Marilyn?

 

MARILYN WHITE:  Yeah, just one second, Phil.  I want to, Arkansas, did you say Arkansas is a non-CON?

 

SHARON BOGGESS:  Um-hum.

 

MARILYN WHITE:  Then we’ve got it wrong on this chart, Dayle.

 

DAYLE STEPP:  That came from the CON - - matrix. 

 

MARILYN WHITE:  I’m sorry, Phil.  What did you want?

 

PHIL WRIGHT:  That’s okay.  I’m answering your question.  Took me a while to get the book.  Our rehab member cost is we pay the first 30 days, there’s a 20 percent coinsurance after 30, first on, and there’s no limit on it.

 

MARILYN WHITE:  No limit after that, okay.  Beautiful.  You’re good.

 

JILL MCDANIEL:  Phil, I’m Jill McDaniel with West Virginia Hospital Association and hello?

 

PHIL WRIGHT:  Yes.

 

JILL MCDANIEL:  I thought you were asking me something already.  We do have a position on Certificate of Need.  We support a strong Certificate of Need program.  We believe that a Certificate of Need is critical in controlling health care costs, assuring access, and assuring quality of health care services in West Virginia.  We represent 74 hospitals and health systems in West Virginia and specifically we also support continuation of Certificate of Need for the review of medical rehabilitation services.

 

PHIL WRIGHT:  Are you for the rehab hospitals being evaluated by HCA for rates?

 

JILL MCDANIEL:  We have never taken a position in support of that, no.  They are paid differently than general acute care hospitals and I know there has been some debate about that over the years.  The Health Care Authority also does not review psychiatric hospitals and we don’t have an issue with that.

 

RAYMONA KINNEBERG:  This is Raymona Kinneberg, again.  On behalf of Logan Regional Medical Center, which does have one of the smaller rehab units, I’d like to join HealthSouth and the Hospital Association in supporting a strong CON including medical rehabilitation.

 

SONIA CHAMBERS:  This is Sonia.  Did you all tell us what your payer mix is, roughly?  I don’t remember whether I caught that.

 

PHIL WRIGHT:  Probably 70/30 the way I see it, Sonia, 70 Medicare, 30 commercial.

 

MIKE ZULIANI:  At Huntington right now for this month our Medicare mix is about 65 percent.

 

SHARON BOGGESS:  My Medicare mix at Southern Hills, this is Sharon Boggess, is 70 to 75 percent.

 

SONIA CHAMBERS:  So 65 to 75 percent Medicare and then other?  How about CAMC, when you have patients?

 

MIKE WILLIAMS:  When I have patients.  I don’t know off the top of my head.  I will say that our charity care is, like, 20, 25 percent.  It is very, very high.

 

SONIA CHAMBERS:  On the rehab unit?

 

MIKE WILLIAMS:  On the rehab unit.  You know, those are—

 

MARILYN WHITE:  Is that Medicaid, do you think?

 

MIKE WILLIAMS:  No, these are patients, these are no-pay patients.  It is very, very high.

 

MALE VOICE 2:  Does Worker’s Comp pay for this service?

 

MARILYN WHITE:  Yes, sir.

 

MALE VOICE 2:  NB, PEIA.  Those are, of course, restricted fee, too.

 

SONIA CHAMBERS:  And those would be in the other category, right?  Medicare and then other.

 

MIKE ZULIANI:  And then there is something also, Sonia, called Medicare managed, which is kind of a new category in recent years that is not just Medicare.  We don’t lump it in that.  We kind of lump it with the other and commercial.

 

SONIA CHAMBER:  So is that Medicare advantage members?

 

SHARON BOGGESS:  Correct.

 

MIKE ZULIANI:  Right.

 

SHARON BOGGESS:  And that is probably, for myself, is coming in right after Medicare.  It is beating the commercial payers up - - commercial case but it is definitely of a higher fee.

 

SONIA CHAMBERS:  Okay, anything else?  Everybody said their piece?

 

PHIL WRIGHT:  And more.

 

SONIA CHAMBERS:  Anybody else wishing to speak who did not?  I would also invite you, if you so wish, to submit written comments, if you would like.  I’d ask that you submit them within 30 days.  All of the comments and the transcript will be part of the record we will share with the legislature.  If there is nothing else I appreciate everybody’s time and interest.

 

SHARON BOGGESS:  Thank you for having us.

 

DR. BIUNDO:  Thank you.

 

[END]