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October 2, 2014

Inpatient Services for Respiratory Failure-Diagnosis Related Group (DRG) 189: Complex Review, Kentucky and Ohio – Continue Complex Review

The J15 Part A Medical Review department performed a service-specific complex review on inpatient services for DRG 189, bill type 11X related to Respiratory Failure in Kentucky and Ohio, from April through June 2014. Based on the results summarized below, the complex edit will be continued in both regions.

Kentucky Complex Edit Results: Respiratory Failure (DRG 189)
  Charges Claims
Reviewed $539,673.05 80
Denied $165,846.40 35
Charge Denial Rate 30.7%  

Ohio Complex Edit Results: Respiratory Failure (DRG 189)
  Charges Claims
Reviewed $940,324.81 134
Denied $313,938.93 71
Charge Denial Rate 33.4%  

The top denial reasons associated with this review are:

Denial Code 5J504 - Need for Service/Item Not Medically and Reasonably Necessary

Denial Code 5CHGE - DRG Upcode/Downcode

  • Reason for denial:
    • The services billed were paid at a higher/lower payment level based on medical review of the records submitted.
  • How to prevent denials:
    • Under the Prospective Payment System (PPS), Medicare reimbursement rates are based on the patient health condition and care needs
    • Submit orders to cover the procedures or services billed.
    • Submit all documentation related to the services rendered.
  • For more information, refer to:

Denial Code 56900 - Requested Records Not Submitted

  • Reason for denial:
    • The medical records were not received in response to an Additional Documentation Request (ADR) in the required timeframe; therefore, we were unable to determine medical necessity.
  • How to prevent denials:
    • Monitor your claim status on Direct Data Entry (DDE). If the claim is in status/location SB6001, the claim has been selected for review and records must be submitted. Please note: CGS may request records through our Medical Review or Claims departments, and other contractors such as the Zone Program Integrity Contractor (ZPIC) may also request records. Ensure the records are submitted to the appropriate entity.
    • Alert your mail room staff to be aware of any mail you receive from CGS.
    • Be aware of the need to submit medical records within 30 days of the date on the ADR in the upper left corner.
    • Gather all information and submit at one time.
    • Submit medical records as soon as the ADR is received.
    • Attach a copy of the ADR to each individual claim.
    • If you are responding to multiple ADRs, separate each response and attach a copy of the ADR to each individual set of medical records. Ensure each set of medical records is bound securely so the submitted documentation is not detached or lost.
    • Do not mail packages COD; we cannot accept them.
    • Return the medical records to the address indicated in the ADR.

Individual providers with significant denials will be contacted for one-on-one education.

If you have questions regarding this review, please call the CGS Part A Provider Contact Center at 866.590.6703.

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