Flourishing Under Healthcare Reform - Maximize Your Profits By Minimizing The Impact Of LUPAs

Full Episodes Worth 11 Times More Than LUPAnumber of LUPA cases. Several of Healthcare Market
EpisodesResources' Market Profile Reports can help your
Among the most costly groups of Medicare patientsagency determine if it's bearing the burden of LUPA
are those subject to LUPA. Using the most recentlydiagnoses for your community.
available national claims database, Healthcare MarketCertain referral sources, such as ambulatory surgery
Resources' research shows that a full episode patientcenters, may also generate a disproportionate number
is worth 11 times more than a LUPA episode patient.of LUPAs because of the limited needs of their
Furthermore, the indirect costs in servicing a patient -patients. Only an agency that is built around a per-visit
including intake, medical records, billing and qualitymodel rather than an episode model may have the
review - are practically the same regardless ofcost structure to serve these patients. As the impact
whether it is a LUPA or full episode. The average laborof the reimbursement cuts begin to affect the
cost per visit is also higher for a LUPA episode, sincesurvivability of home care agencies - especially local
the added effort of the initial and discharge visits arevisiting nurse associations (VNAs) - tough decisions
balanced by fewer "regular" visits. LUPA episodes aremay have to be made as to whether an agency can
financially unattractive and, therefore, every effortafford to continue to serve these patient populations,
should be made to minimize their frequency.particularly if the long-term survivability of the agency is
Understanding Why LUPAs Occur Can Help Minimizeat stake.
Them in the Future3. Operational LUPA Episodes
There are three types of LUPA episode patientsFrequently caused by patients missing visits, this type
based on the reason for the adjustment: Inevitableof LUPA is the most preventable. Monitoring these
episodes, intake episodes and operational episodes. By"absences" on a real-time basis and holding staff
understanding why an adjustment is made, an agencyaccountable for rescheduling the visit is essential. Also,
can take steps to minimize the occurrence of LUPAyour agency can contact projected LUPA patients
episodes in the future:between visits to see if their condition has changed. If
1. Inevitable LUPA Episodesa patient's condition has changed, your agency can
These types of LUPA episodes are very difficult torespond by contacting the physician to get an
prevent. They can happen if a patient is readmitted toassessment visit authorized. In any case, this practice
the hospital or transferred to hospice before ais good customer relations. Additionally, agencies should
treatment plan is completed. Another example of anconduct periodic chart reviews to determine how
inevitable LUPA episode is a patient service whomany LUPAs were preventable.
requires a re-certification period, but achieves theLUPA Rates Vary Among Different Markets
treatment plan goals before completion of the fullLUPA rates also vary significantly from market to
episode visit level. Other than making sure that themarket. Healthcare Market Resources demonstrated
transfer to hospice occurs after the fifth visit, there isLUPA levels vary dramatically by state, for example, in
little that your agency can do to prevent thesea previous newsletter article, "Metrics Matters: What
inevitable LUPAs.Percentage of Your Home Care Patient Episodes Are
2. Intake LUPA EpisodesSubject to LUPA?" In fact, we found a negative.65
As you can see in the Metrics Matters section of thiscorrelation, which is statistically significant, between
newsletter, patients with certain primary diagnoses arerecert rates and LUPA levels. That means the higher
more likely to generate LUPAs than others. The primethe recert rate, the lower the LUPA levels. This strong
offenders - diagnoses that generate the most "intake"correlation indicates that LUPAs are less likely to occur
LUPA episodes - include:if agencies serve a highly chronic population.
Mental healthEach market has its own LUPA level, caused by:
B12 shots (Blood)The types of patients referred to home health
Catheter changes.At what point in the disease process patients are
Once your agency has decided to admit a patient withreferred
one of these diagnoses, there is little that you can doHow long agencies are "allowed" to keep patients.
to avoid the LUPA. If your agency has programs thatManaging your agency's percentage of LUPA patients
serve these patient populations while your competitorscan have a significant impact on your financial results.
do not, you'll likely end up with a disproportionate