3 Things To Think About Before You Purchase An Expensive Piece Of Medical Equipment For Your Rural H

3 Things To Think About Before You Purchase An Expensive Piece Of Medical Equipment For Your Rural H

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Are You Thinking about a Principal Investment in Equipment For Your Rural Health Clinic?

Rural Health Clinics are expected to be in compliance with the plethora of rules and regulations set forth by the State Agency, CMS and the Medicare Administrative Contractor (MAC). Compliance insures the clinic's continued involvement in the Medicare Certified Rural Health Clinic program.
Having been a rural health clinic consultant for the past 20 years, I have seen the development of rural health clinics from simple one physician and mid-level practitioner in small medically under served rural areas to huge multiple physicians and multiple mid-level practitioners in large corporate entities seeing thousands of patients yearly. Technology gains in the field of medicine and the availability of new diagnostic equipment are available to those who can afford them and who want to keep up with larger practices in their service zone. The advances in technology and equipment have enabled many rural health clinics (RHC) to treat patients in the locality rather than referring them to larger urban areas. In spite of the benefits of new equipment to the rural health clinic, there are negatives to consider as well. Cost reimbursement, the lifeblood of the rural health clinic, sometimes will not pay for the equipment or the technician's expenses if the tests are not covered under the rural health program. Here are three factors a rural health clinic must consider before purchasing diagnostic equipment:

First, be sure the diagnostic test is covered under the Medicare Program. If the test is new or considered experimental, no matter how imperative it may be for the patient, it will be denied. Some tests are not covered under Part B and will also be denied. Many diagnostic tests have a global cost as well as a technical component. The rural health clinic can bill for the office visit if the patient sees either the physician or the mid-level. The rural health clinic can also bill the technical component to Part B. If a non-employee technician performs the test and the equipment company that offers the technician to the rural health clinic does not bill the test, the rural health clinic can bill Part B for the global fee. An office visit cannot be billed since there was no face-to-face encounter with a physician or mid-level.

Second, in lieu of purchasing the equipment, an alternate option is leasing it. If the equipment is obtained, the clinic will realize only the depreciation value and interest (if the equipment is financed) as an expense versus the entire amount of the annual lease expense. Some medical equipment companies will switch out the equipment at the end of its useful life with an updated version and a new lease. Most practices want to follow the advice of their accountant and purchase the equipment. This would be a reasonable accounting concept if the rural health clinic were on a cash methodology. However, rural health clinics are not on cash accounting but rather on an accrual methodology. Therefore, a lease is the preferred way to maximize the rural health clinic's reimbursement.

Third, make certain your medical record reflects a medical necessity for the tests. Remember, routine tests, no matter how sophisticated or expensive, are covered only if the patient's medical diagnosis warrants the tests. The patient's chart must reflect the condition and the expected consequence. If the MAC requests the chart, a judgment of medical necessity will be made either on a prepayment or a post-payment basis. It's important to remember that the MAC nurses reviewing the medical records do not have the virtue of seeing the patient and will depend on what is recommended on the encounter sheet. If it is vague and does not adequately reflect the medical necessity of the tests, the tests will be denied. If there is a pattern of denials for the same test, an extended review may be ordered by the medical review division of the MAC.

Today's Rural Health Clinic
The level of sophistication in rural health clinics has risen by leaps and bounds. Today many rural health clinics use the same technology as their counterparts in the major urban areas. Technological advances have resulted in some unique problems for rural health clinic that were virtually non existent 20 years ago. Should I buy this new diagnostic equipment? Can I find well-trained technicians to run these machines? How many tests do I need to carry out to justify the expense of the equipment? Will Medicare reimburse me for the tests? The answer to all of these questions is:

Contact Rural Health America
(800) 592-3051

About the Author:
For more information on Rural Health Clinics Spotsylvania VA , Rural Health Clinics Spotsylvania VA you can contact us at: Rural Health America P.O. Box 1566
(800) 592-3051



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