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HomeMy WebLinkAboutDocumentation_Regular_Tab 7-11_3/8/2001 ( 1 Memorandum To: Michael R. Couzzo, Jr., Village Manager From: Joann Manganiello, Assistant Village Manager/Village Clerk Date: March 2, 2001 Subject: Bid Award for Demolition of Village of Tequesta Buildings and Appurtenances; Resolution No. 31-00/01;Agenda Item Attached is the contract proposal for the demolition of Village of Tequesta buildings and appurtenances, located at 357 Tequesta Drive, which includes an asbestos survey and temporary fencing, submitted by Thomas B. Cushing Demolition of West Palm Beach,Florida, in the amount of$54,786. Cushing Demolition has been awarded the annual Palm Beach County Demolition Contract (Contract No. R99740-D) and, therefore, the Village was able to piggyback the County's Contract pricing resulting in a very favorable proposal. Cushing Demolition is a well-known, reputable demolition company and has completed many demolition projects throughout Palm Beach County including the demolition of the Lighthouse Plaza.in Tequesta(current site of Tequesta Oaks) and, most recently, the demolition of Phase I of Tequesta Plaza. As you can attest, Cushing Demolition did an exceptional job in demolishing the Tequesta Plaza retail building and left the site in excellent condition. , Additionally, I am looking into the possibility of salvaging the marble facade on the portico of the Village 1;Iall building, perhaps for use in the new Municipal Center. „ It is recommended that the Village Council approve the.Contract Proposal for the Demolition of Village, Tequesta Buildings and Appurtenances, etc., to Thomas B. Cushing Demolition of West Palm Beach, Florida. Please place this item on the March 8, 2001, Village Council Meeting agenda for consideration by the Village Council. Thank you. Enclosures amipro/files/asstmgr/priority/votdemo 1 y RESOLUTION NO. 31-00/01 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, APPROVING THE CONTRACT PROPOSAL FOR THE DEMOLITION OF VILLAGE OF TEQUESTA BUILDINGS AND APPURTENANCES, LOCATED AT 357 TEQUESTA DRIVE, INCLUDING ASBESTOS SURVEY AND TEMPORARY FENCING, TO THOMAS B. CUSHING DEMOLITION OF WEST PALM BEACH, FLORIDA, PIGGYBACKING PALM BEACH COUNTY DEMOLITION CONTRACT NO. R99740-D, IN THE AMOUNT OF $54,786, WITH FUNDS BEING APPROPRIATED AND TRANSFERRED FROM THE $5, 000, 000 LINE OF CREDIT (BANK OF AMERICA) , AND AUTHORIZING THE VILLAGE MANAGER TO EXECUTE THE APPLICABLE CONTRACT ON BEHALF OF THE VILLAGE. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1. The Contract Proposal For the Demolition of Village of Tequesta Buildings and Appurtenances, Located at 357 Tequesta Drive, including asbestos survey and temporary fencing by Thomas B. Cushing Demolition of West Palm Beach, Florida, Attached Hereto as Exhibit "A" and incorporated by reference as a part of this Resolution is hereby approved and the Village Manager of the Village of Tequesta is authorized to execute the applicable contract on behalf of the Village of Tequesta. THE FOREGOING RESOLUTION WAS OFFERED by Councilmember , who moved its adoption. The motion was seconded by Councilmember , and upon being put to a vote, the vote was as follows : 1 FOR ADOPTION AGAINST ADOPTION The Mayor thereupon declared the Resolution duly passed and adopted this 8th day of March, A.D. , 2001 . MAYOR OF TEQUESTA Joseph N. Capretta ATTEST: Joann Manganiello Village Clerk Word\Resolutions\Demolition of Village Hall I _ EXHIBIT "A'.' THOMAS B. CUSHING DEMOLITION 8210 8th Road North Westoalm Beach, Florida 33411 • Phone i561)793-6173 - FAX (061)790-2297 THE VILLAGE OF TEQUESTA 575-6200 ,1AN�:,26,2001 sYwrui - J01 NOIMf . ..r.r�.... . ��. 357 TEQUESTA DRIVE " . OI Y.�TATL ANO tl/C00t -- JN\IOCII,IOM Il'EQUESTA.FL.33469 357 TEQUESTA DRIVE AiICNITLCT WI Or MANE •••- ••< •• rOlOrFAX 57 5-6245 � .'.� THE FOLLOWING 1S A PRICE FOR DEMOLITION WORK TO BEI'ERRORMEI) AT 357 TEQUESTA DRIVE TEQUESTA. THE WORK INCLUDES THE :TOTAL. DEMOLITION OF THE 70.1.J.(�I�t STATIQN,FIRL STATION ANA 4AYS, (XIMMUNITY DEV.OFFJCg.YORTICO.ASPHALT pAgunO 1ATP_ONCR1s'TE DRIVEWAY.ALL SLABS Op FOOTERS. ONLY TflLSE•TREES AN BJJSI ES j ECESSARYHE C:OMPI.ETION OF THF. DEMC)I ITION WILL I. REMUV? • NO FILL DIRT WILL BE REMOVED PROM THE SITE AND NO FILL DIRT WILL BE HAULED 7N TO PILL ANY DE— PRESSION LEFT AS A. RESULT OF THE DEMOLITION. WE WILL NOT BE RESPONSIBLE FOR THE REMOVAL OF ANY TANKS (EXCEPT SEPTIC) TIRES OR HAZARDOUS MAZ4$, ALL PREON MUST BE EVACUATED FROM ALL AIR CONDITIONING UNITS PRIOR TO 1) OLI77:CNN: WE WILL NOT 1W R1'SPONsIRLE FOR THE REMOVAL OF ANY ASBESTOS W1 SILL INCLUDE A P 1(`t? 'I711? ASBFR9`[)S •ifRVlr. Ad * _ -. ALL UTILITY DISCONNECTIONS.CAPI'INOS AND RELOCATION4V ARR THE OWNER'S RESPONSIBILITY. w „•TM� THE DEMOLITION AREA WILL B LEFT IN Alma' ARD CLEAN CON1T1TION AND ROACH QBAD,I„[JON COMPLETION. - .. ....�.�.,.._._..�.� - ONE STORY CBS POLICE STATION/VILLAGE HALL 81.00 BJ, X $I_oO $15,390.00 ONE STORY CBS COMMUNITY DEV.131,DG. 34(00 S.F. X $1.90 - $500.00 ONE STORY CBS 3 DAY FIRE RESCUE BLDG. 2700 S.F. X $1 .90 $5130.00 ONE STORY MODULAR BLDG. AND TIN SHED 1300_0-(O 2025 S.F. OP CONCRETE SLAB THAT OLD WATER TANK PT:o r 2025 S.F. X $1 .90 $3 47..5.0 1215 S.F. OF CONCRETE AND, BLACKTOP DRIVEWAY 1215 R.F. X .50 $607.0., 29340 S.F. OF ASPHALT PAVING _ 29340 S.F.X - .iO J 14.(70.Q() 1148 S.F. OF CONCRETE PORTIC[1 11.4H S.F.X $3 .90 $2101.20 FENCING ENTIRE SITE T ' 1'ORARY -,-• $7..000.00 SEPTIC PUMPS SN1) R1 1OVAL $200,00 PER ,S Y..11C:- -. __:. • - ..._,...,...............„, TOTAL AMOUNT FOR ABOVE. . ..$53,286.20 ,„, ASBESTOS SURVEY $1500.00 LINTY DEMOLITION CONTRACT N0. R99740-D . Memorandum To: Michael R. Couzzo, Jr., Village Manager From: Gary Preston, Director of Public Works & Recreation Date: February 27, 2001 Subject: Village Council Agenda Item for March 8, 2001; Consideration of Contract Award to Terracon Services, Inc., ,in.the Amount of$76,490.00 for Streetlight Conduit Installation and Landscape Improvements on Seabrook Road, Having a FY 2000/2001 Budget Allocation of$138,000.00 • Please find attached, the following support documents for Councilmembers' review for the above referenced agenda item: • A qualified bid tabulation sheet. • A single project bid in the amount of $76,490.00 from Terracon Services, Inc., for Seabrook Road Streetlight and Landscape Improvements. ♦ A letter dated January 25, 2001 from Village Engineer Mitchell D. Thomas, Vice President recommending contract award to Terracon Services, Inc ♦ A letter dated January 8, 2001 from John C. Randolph, Esq., approving bid document for legal form and sufficiency. During the past two (2) budget years, the Village Council has allocated funding for this project and these funds are in the undesignated fund balance. Should the Village Council approve this contract, these funds would be transferred from the undesignated fund balance to the.Seabrook Road South account. Please place this item on the March 8, 2001 Village Council Meeting Agenda for Councilmembers' consideration. GP/mk Attachments Agendaltem.CouzzoTerraconServices 3.8.01 RESOLUTION NO. 32-00/01 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AWARDING A CONTRACT TO TERRACON SERVICES, INC. , OF JUPITER, FLORIDA, IN THE AMOUNT OF $76, 490 . 00 FOR STREETLIGHT CONDUIT INSTALLATION AND LANDSCAPE IMPROVEMENTS ON SEABROOK ROAD, AUTHORIZING AN INTRA FUND TRANSFER OF $138, 000, 00, TO FUND THIS PROJECT, AND AUTHORIZING THE VILLAGE MANAGER TO EXECUTE THE APPLICABLE CONTRACT ON BEHALF OF THE VILLAGE. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1. Consideration to award a contract to Terracon Services, Inc. , of Jupiter, Florida, in the amount of $76,490 . 00 for streetlight conduit installation and landscape improvements on Seabrook Road, authorizing a Intra Fund Transfer of $138, 000, 00 attached hereto as Exhibit "A" and incorporated by reference as a part of this Resolution is hereby approved and the Village Manager of the Village of Tequesta is authorized to execute the same on behalf of the Village. THE FOREGOING RESOLUTION WAS OFFERED by Councilmember , who moved its adoption. The motion was seconded by Councilmember , and upon being put to a vote, the vote was as follows : FOR ADOPTION AGAINST ADOPTION The Mayor thereupon declared the Resolution duly passed and adopted this 8th day of March, A.D, 2001 . MAYOR OF TEQUESTA Joseph N. Capretta ATTEST: Joann Manganiello Village Clerk Word\ Resolution\TerraconServices QUALIFIED BID TABULATION SHEET STREETLIGHTS, IRRIGATION AND LANDSCAPE IMPROVEMENTS SEABROOK ROAD DAYS TO BIDDER NAMES PROPOSAL COMPLETE Aiello Landscape, Inc. $84,800 60 Terracon Services, Inc. $76,490 45 P • EXHIBIT "A" SINGLE PROJECT BID • SEABROOK ROAD STREETSCAPE IMPROVEMENTS VILLAGE OF TEQTJESTA BID QUOTATION OF: Name: Terracon Services , Inc. Address: P .O. Box 2766, Jupiter, .Fl 33468 Telephone No. 5 6 1—7 4 3—112 9 to perform all work in accordance with the specifications and contract documents attached.hereto for the: Village of Tequesta P.O.Box 3273 pp Tequesta,FL 33469-0273 Gentlemen: The undersigned Bidder has carefully'examined the plans, specifications, contract documents and ''" the site of the proposed work and is familiar with the nature and.extent of the work and any local conditions that may in any manner affect the work to be done and the equipment and labor required. The undersigned agrees to do all work called for by said specifications and contract documents,in the manner prescribed therein and to the standards of quality established by same at a cost to the •— Village of Tequesta equal to the total amounts indicated below: r► BQ -4 • • ITEM DESCRIPTION ' QTY UNIT UNIT ESTIMATED COST COST 1 ' East Palatka Holly 3 Ea. 450.00 1 ,3 5 0: 0 0 2 I Live Oaks 22 Ea.. 800.00 17,600. 00 3 Cabbage Palms 33 Ea. 180.00 5 ,940 . 00 4 Sod 25,000 SF . 28 7,000 . 00 • 5 Irrigation System Installation --- LS --- 34,500.00 6 Install conduit for FPL street lights -- LS --- perplan • 9,700.00 7 One Year Maintenance&Warranty --- LS • --- (as described) 400.00 Note: 1 Incidentals such as staking trees,fertilizer,mulch, soil,etc.to be included in the price of the related item. • TOTAL BID QUOTATION AMOUNT LN WORDS AND N'UMBERS__$76,490 .00 Seventy-six thousand four hundred ninet,v---00 1100DOLLARS $ 76 ,490.00 ALTERNATE BIDS . ALTERNATE NO. 1 - Live Oak trees 18'x.11';4-1/2"cal.; 100 gal container in lieu of 16'x9'; 4" cal.; 100 gal container (ADD) ALTERNATE BID NO. 1 BID QUOTATION AMOUNT IN'WORDS AND NUMBERS$8 9, 6 9 0.00 Eighty-nine thousand six hundred ninety---00 /100DOLLARS $ 89 ,690.00 • Deduct $586..00 if permit fees for landscape are not. required for Village of Te.questa. i.o • .r. r- BQ-5 • The undersigned also agrees as follows: 1. To perform additional services and provide necessary equipment, facilities,and materials for work not covered by the above Bid Quotations, which may be authorized by the Village and to accept as full compensation, therefore,such prices as may be agreed upon in writing by the Village and the Contractor in accordance with Item 15 of the General Conditions. 2. To commence work on or about April 2,2001 within 10 days after the date of written Notice to Proceed,to substantially complete the entire Work within (indicate No) 45 consecutive calendar clays after the date of written Notice to Proceed, subject to such extensions of time allowed by the Conditions of the Contract,and to achieve Final Completion of the Work by no later than 30 days after the actual date of substantial completion. MEM Accompanying this proposal is a certified check or a BicdBond in the amount of$8 ,750. 00 (not less than five percent(5%)of the base bid),made payable to the Village of Tequesta,which is to be forfeited as liquidated damages,if,in the event this proposal is accepted,the undersigned shall fail to execute the contract and furnish satisfactory contract bond under the conditions and within the time specified in the proposal;otherwise said certified or cashier's check or Bid Bond is to be returned to the undersigned. • • Dated this 22 day.of. January ,2001 .CONTRACTOR: Terracon Services , Inc: ADDRESS: P.O. Box 2766 • Jupiter, FL 33468 • BY: �t`w,C J& Q - (Signature' d Title) • • • BQ-6 • GEE&JENSON Engineers•Architects•Planners,Inc. r SINCE 1951 } One Harvard Circle West Palm Beach,FL 33409 January 25, 2001 Telephone(561)515-6500 Executive Fax(561)515-6503 Fax(561)515-6502 Gary Preston Fax No. (561) 575-6245 ' Director of Department of Public Works Village of Tequesta P.O. Box 3273 Tequesta, FL 33469 • Re: Country Club Drive Phase III and Seabrook Road Streetscape Projects Dear Mr. Preston: • We have reviewed the bids received from interested bidders for the subject projects. Three sealed bids were submitted by the 2:00 p.m. deadline. One additional bid was received by fax rather than in a sealed envelope as required and, therefore, we recommend that it be rejected. All three of the bidders submitted bids for the Seabrook Road project,however, only two bids were received for Country Club Drive Phase III. One of the bidders chose to offer a 2.5% reduction in the total bid amount if selected for both projects. The reduction amounts to approximately$5,000.00. As indicated on the attached bid tabulation, the low bid for both projects (individually and combined) was submitted by Green Acres LIST Service, Inc., a landscape construction firm located in Fort Lauderdale. Their bid is as follows: A. Country Club Drive Phase III $120,533.00 B. Seabrook Road Streetscape $ 74,035.00 C. Country Club Drive Phase III and Seabrook Road Streetscape $189,443.00 The combined bid submitted for both projects is S 189,443.00. Several matters regarding this bid should be noted as follows: 1. Green Acres does not hold a Certified Landscape Contractors License as required by the bidding documents. The firm also does not have a certified arborist or pesticide applicator as required. 2. The time period indicated by Green Acres for completing both projects is 150 days or 5 months. 3. The bid cost breakdown indicates a total amount of$4,500.00 for the one-year maintenance and warranty item for both projects. Green Acres advises that this figure is in error and should have been doubled for a total of$9,000.00, however, the firm will abide by the lower figure. F:4\IDT\Ltr-GaryPreston-01-24-DI SeabrookStreetscapebids_mdt.doc Engineering I ES 000293.1•Architecture I AA C000656•Landscape Architecture I LC CO00060•Land Surveying I LB 0002934•Interior Design M IB C001020 The only other bid received for the Country Club Drive project was submitted by Aiello Landscape, Inc. at $126,092.00, it is $6,459.00 (about 5%)more than the Green Acres bid. The firm holds a Certified Landscape Contractors License and has the services of a certified arborist and pesticide specialist. In addition to the bid of Green Acres, two bids were received for the Seabrook Road Project. The lower of these bids was submitted by Terracon Services, Inc. and is $75,904.00. This bid is $1,869.00 or 2.5%more than the low bid of Green Acres. The other bid, submitted by Aiello is S10,765.00 or nearly 15% more than the low bid. Terracon holds a Certified Landscape Contractors License and has the services of a certified arborist and pesticide specialist. Analysis and Recommendation • Unless the Village was to waive the requirement that bidders must hold a Certified Landscape Contractors License, the bid submitted by Green Acres must be rejected. The requirement bas been imposed by the Village on all recent landscape-related projects at time of bidding and is • considered very desirable in assuring competent services. That view is shared by the designers of the two projects in question. It is, therefore, recommended that the Country Club Drive project be awarded to Aiello Landscape, Inc. by acceptance of its bid $126,092.00. The projected construction timeframe is indicated as 90 days. It is further recommended that the Seabrook Road project be awarded to Terracon Services, Inc. • by acceptance.of its bid of$75,904.00. The projected construction timeframe is 45 days. This bid is approximately 11% less than the Aiello bid for the project and offers a 25% reduction in the construction timeframe indicated by Aiello. Only one alternate bid was received for substituting larger oak trees for those specified in the base bid. The cost of that alternate bid submitted by Terracon for the Seabrook Road project added approximately S13,000.00 or 18% to the Seabrook Road project. No alternate bid was submitted for Country Club Drive. Availability of quality trees at the larger size is limited and the quality of those trees may be marginal. The additional cost does not appear justified and the alternate is, therefore, not recommended. The recommendations are based on approval by the Village attorney, that insurance and bonding requirements are met. As you know,both firms have performed satisfactorily under previous contracts with the Village. Very truly yours, Mitchell D. Thomas Vice President Lc 21-004.01 a`; One Harvard Circle•West Palm Beach,FL 33409•Telephone(561)515-6500•Fax(561)515-6502 Engineering a EB 00029'.a•Architecture a AA COOOESE•Landscape Architecture I LC CcocodO•Land Surveying I LB C002934•Interior Design a 10 0001020 JONES FOSTER ER Flagler Center Tower,Suite 1100 Mailing Address JOHNSTON 505 South Flagler Drive Post Office Box 3475 UC Q� STUBBS P ^ West Palm Beach,Florida 33401 West Palm Beach,Florida 33402-34 1Jl .ri. Telephone(561)659-3000 Facsimile(561)832-1454 4IPAttorneys and Counselors John C.Randolph,Esq. Direct Dial: (561)650-0458 E-mail:jandolph@jones-foster.com January 8, 2001 VIA FAX: 575-6245 • Mr. Gary Preston Village of Tequesta Public Works Department Post Office Box 3273 Tequesta, Florida 33469-9273 RE: Village of Tequesta Country Club Drive Phase III/Seabrook Road Improvements Our File No. 13153.1 Dear Gary: I have reviewed the documents you submitted to me under your letter of January 3,.2001,relating to Country Club Drive Phase III/Seabrook Road Improvements and have approved same as to legal form and sufficiency. Sincerely, • JONES, F TER, JOHNSTON & STUBBS, P.A. C. Randolph JCR/ssm Sr"\ C`E 1924 • ,. -!lam• v 4r AN OLD DRUG WITH NEW TRICKS + c • to facilitate drug delivery.13 9 rt ` 1 , , If VFM persists after CPR circulation of drugs (30-60 sec- IA ,..4., ;.,. ands), the algorithm calls for immediate defibrillation (fourth — ` • shock) at 360 joules. If VFNT still persists despite a fourth ,d. shock,the algorithm follows standard ACLS protocols.u It's important to ngte that amiodarone is given immediately Discover the following the bolus of epinephrine—there is no waiting period between drug closings(see Figure 1,p.63). Vanner Advantage! 1 Contraindications •1,050 Walt Power Inverter There are several distinct contraindications for the use of amio- ••55Amp Battery Charger/Conditioner �' y UL Certified to Federal Specification s t .„ �„„--, darone in the patient with a pulse in ventricular tachycardia. KKK-A-1822D F - Amiodarone is contraindicated in patients with cardiogenic •UnderwritersLabo►atoriesListed �`�` shock,marked sinus bradycardia and second- or third-degree " `' 4 -: "� Y gr OIL and C UL) 1, 4 AV block,unless a functioning pacemaker is available.However, •Remote Monitor Control System r ` in the presence of life-threatening arrhythmias, such as •taverterLockoutControllMerlock ':-" VFlpu!seless VT,the only true contraindication to the adminis- Designed sperificolly for EMS vehicles,the 20-1050CUL combines a tration of amiodarone is a known drug hypersensitivity.9.to,ts Amiodarone is administered via an IV and cannot be adminis powerful DC to AC power inverter with an automatic battery tend via an endotracheal tube. charger/conditioner and a 30 Amp AC transfer switch. .del' SOO—AC POWER 1 Visit our newly updated web site et: gad PotER„P wwwvannercorn - e-moil: pwrsales @vonner cam For More Information Circle Aa2 On Reader Service Card - ... MU �• �. OFt • -.. 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That's a total 4three primary and two bark •, , '• • drug nags with three:ampules each,and we'll need anon' # six amptllcs for our station stock_ That's 21 a npu.les 1 _ �i `. , ainiodgrgne,t00 .How muck will that cast?" 4, , �,t, "I checked with t! pharmacy;that Will be$2,73D far #ram _s II' ` ampules because we can only order them in 10 packs-,° . - • `ram r "What? The maximum I can bill the AL:intercept- ., i tr $230. If we use two 150-mg amps of amiodarone at a co, of$182,then add in other meditations,disposables and ' iI . � F '{_' cost of the medic and response vehicle, 111 be losing ego . 4 a r on my cardiac arrest tails . rr rs a; g h •It seems likely that amiedaronc (Cordarone frr_+`Y 41 .. Wyeth Ayerst) will soon added to paramedics' + ` ` .." `tea;- .:' , 4 e ' boxes attest the country. The drug represents the Y. 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A main- ven- tenance infusion of amiodarone following a 300 mg bolus j :ing, isn't usually required because blood levels remain elevated tg is continued on p.73 rQ' ` r j `• face an uncertain ALS relmbursept,ent future. • • } Although amiodarone is expensive;it may well repre- sent an important turning..point in the evolution:of out- of hospital care—,placing expensive, cutting-edge mea- 1 ications.into drug boxes that have changed little in the - past two decades. hi•the context of cardiac,attest patients, such.new interventions are sotely:nceded because the survival rate of arrest patients has also is O S a iJ f e • changed little during the same period. The optimisticp , view is that by placing prehospital ntedicine.in the loop u t O rTl a t 1 C 1 • of newly.evolving.interventions we d `j may�,vSe�he Resuscitator _ quality.of care we .bring to our patients-at an increased,but necessary,cost. PATAWI ce For years, EMS has enjoyed relative insulation from the world of expensive patented-drugs.The reason:Most drugs we've used are inexpensive,simple;fasy to manu- _ _ ia of p y facture, generic compounds. A re-filled syringe g .4 Price comparable to manual resuscitate a 1:10,000 epinephrine costs about$3.In the early 1990s we added adenosine (Adenocard) to our drug boxes. At • For breathing or non-breathing patients- reral $30 fora 6 mg bottle, that seemed expensive back then, ; the but its impact of providing a-much safer and effective ® Consistent hands-free ventilation treatment for SVTs than previous medications has been • Single patient & easy to u s e ,onse unquestionable.. h-up A decade later, enter amiodarone—at about $180 per • Pressure limited safety feature Wier (300 mg)dose.A hefty price as prehospital drugs go;but 4 Anti-asphyxiation port es of to fully appreciate the drug's price tag you need to con- sider the components of modern drug development,mar- • Compatible with M R I and CT Scans n.30 keting and the associated costs that drug companies incur. • Constructed of lightweight plastic pt is Factors that influence the costs of newly releaseddrugs • Meets ASTM requirements cost • •Research and development costs; i d the •Drug development in the laboratory; oney •Legal and administrative costs to obtain patent(s); a •Costs of federal FDA-Mandated studies; Call (800) 434-4034 to order or 1 rem '•Costs of clinical trials; visit our website at httpa1www,vortran.corY1 drug- •Advertising; •Mailings to individual providers' For More Information Circle 466 On Reader Service Card .Aik •Print advertising in medical journals ---`VOR:,- M dfi•'`' 3- . r n ' 'rechjttkf9 tife t , and •Detailingby regional drug representatives; a x r 1 3941 J Street.Suite 354 with On-site displays at major medical meetings; they •Miscellaneous educational materials(videotapes); Sacramento,CA 95819-3633 TEL: (800)434-4034 continued on p. 70 FAX: (916)454.0490 r ._ _ �.; fi } ;Y Amiodarone:The Cost of Doing Business continued from p.69 - '. Y •Profit margin;and q _ •Need to maximize profits while drug is patent- .,'` .. protected. (?.(e) First approved for use in the United States in its oral form in 1985, an 1V form of amiodarone was subse 1. - 1 quern!),developed by Wyeth-Ayerst (at the FDA's . * request) and released a decade later'in 1995. That process,as well as the funding of ongoing drug studies, j educational programs and marketing, has represented an expenditure of "hundreds of millions of dollars," 4 _ according to Philip de Vane,MD,vice president of clini- i, s - cal affairs for Wyeth-Ayerst, Despite a need to recoup �" _ zoos •• these expenditures, Wyeth-Ayerst has pledged to - _ - -- , dampen associated costs of stocking amiodarone by ,,, ; � _ :. = •_ exchanging drug vials as they expire. - •-•- , , It would be naive to ignore the fact that the pharma- 1=__: i. - • cetitiital industry is big business.The companies have an I — _ -— _ - j obligation to their stockholders to make profits from the z; r lR . drugs theydevelop and manufacture.When a new drug f: �� r , is released onto the prescription market it almost - -� - P P � `_ always arrives with a hefty price tag. , x _ Newly developed drugs are protected by patents to -_ i y _. ensure that only the pharmaceutical company that level- F • • - = oped them can produce them_During this period,which I : typically.lasts five to seven years, drug costs tend to be >; high because coin antes maximize profits while having ' 14:1 ._ . - the luxury of no market competition. When the drug loses its paten proteotion,other drug manufacturers can ," , - produce generic equivalents, which results in a signifi x; cant price decrease. Wyeth-Ayerst'satn[odarone patent, under the brand name Cordarone;expires in 2002. :s. 1 So what challenges does amiodarone pose to EMS? ' CM • - First, services must consider the economic impact. ;--- - Clearly,when an extra$180 is added to every v-fib cardiac Iarrest,profit margins narrow or can become non-existent- •s 0 . , ��,,,�• �•'•�� �r„ir7':�q',,,t ` ,:s_,.. �`k#:?.. , d�.fa „it -:._s •a- ' t om r N- s £ a s was x. x k; e -? E . S f t/,--.•_-51 MI -- • . .. - i - Mik our: calendars now. ,._ , _ ::: Y�: ,. .___ � �.8� 1 •___ , --, ,'"- ---- _ 1 •4.• 45. 4•---lq •-• -^c••• , •R •.,": a.•:: P';g:4;4,-, r'i $,0 •144' ..- ."I' •"F. 4-. '..}.- ••:.,... ''-.., ,..,,. 1.,•4.?,;r, .1‘, .''. 4.1g,;--F-14. sr - 01.= ,. .0 % ,......1,....t.F.'4, -,, .4;z4,,.. , , "r, ,..., .. ,......:..„ ...,,,•.,m;- - ,=*g9t.., . 4. 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''A, •: ''',- ...-".:.:',-,'..::.V. .i•-'',.'4'. •' ''': ....•st' . •:qi:Nbii.:,,. ..Ali1443; :',',4';:4., ,,,A.41%'r 5...i« ..':''' ',' ..;:t- ... lik' • • AN OW DRUG WITH NEW TRICKS . t�J� •# .1 4 1, I o-1-�3.� I 1 1 1 1 I r k t l s.� G ""2c • r r et ,t.Yi. r F_ r :A � . t9 Earn Your Masters Degree• =F Advance Your Professional ' Development Through The _ • 1,-, Non-Credit Option , �` i '3 jam, • I IY,f Y f I ` Get Connected t � - • ` AtIrA =�ss � with UMBC!! • e, # .�3-% lx.• 11 _ :� t i � f 'R+`'�'j }* Tie L, �q � ',t .: y N`,' F"`;�` n'", CONTACT US NOW FOR bt ,lax S� ,t e ; MORE INFORMATION t, �'�` ��', :s , r tv. ` 4 .,,t : U Call(41 D)455-2797, x � ' A N H D N O R S E-mail connectCumbc.edu �� -7 .- , , UN dERS1TT '-'- or find -. . � _ ...L. ' : 3 tr ,,. { r ri P r ryt t.', ? f t t y IN M A R T L A N D www.ehs.umbc.edu/de ��- �,:.; , ,r ,� .. ssL For More Information Circle M67 On Reader Service Card tf `f§ 1 =L�t '� -, �' r : a , "s 4r a ., .Need to stay in touch? No Problom! � Y ' . Kf• �SALES • RENTALS SER� E t ' .es� ss 0,4..kek " -� 3('r1 zi t e _ t� s a r t ik1r .s 4'a,� r • .� r 7 a to t�s' r'' - ,,{�i tiH2�� �1 it,3, t �' Ems. � 3'r� °ry� z, • Two-Way Radios n ,- S '- ' s t Y 1t'ztl4* sl,. s`s t _� 'rt 4 5 tAd f' j e F, t'Z. 5 : 433 Nextel Phones �' r s E r� +- a a r9,..,:its Tm3n } Ty ,s & c.a., ,C ,fit; sA M$.. t� 44€ .. l S i art x r,S-x '�'?; p,,` j • Offices Worldwide - e #d t:� ; : i+ H ' , ' !.1 32l�re cl T c,T z.z 4 .,,'° a.b.r ' f3j f • Largest Inventory k7, 7. }b S E 1 rR t''a^ .T�1 1, d 3q v . Call Nationwide Toll-Freeii-' j 4s 1 f z 1-800-527- 670 `��� #` ; � � u. BEARCOM cam e = .{ , I i- I� e� oft' Wireless Worldwide ` ' www.bearcom.com Wa110:040. SWl T R 4Va}Ah4 Mthonty W afcOm S,Bellingham,Wash For More Information Circle N68 On Reader Service Card AN OLD DRUG WITH NEW TRICKS CONTINUED FROM P.69 = for 20-30 minutes,which in most cases provides adequate I.- time to reach a hospital in most urban systems.13 Systems , - _- with longer transport times may consider a maintenance infusion of amiodarone during transport. (`, i j , - = f} 1?. Earty hospital notification . tx, t Early hospital notification is extremely important to allow emergency department (ED) staff to mobilize additional resources to properly handle a patient who has received ' prehospital IV amiodarone. Hospitals may not routinely _1 stock amiodarone in their ED crash carts. If repeat boluses of the drug are required, a significant delay can occur ' while awaiting delivery from a hospital's pharmacy. Complications in drawing up amiodarone t -' Because amiodarone comes packaged in 3 mL glass ;,." , ampules, the EMS provider must break the ampule and `_'' carefully withdraw the drug using a needle and syringe- ?:; This is a difficult task when attempting to rapidly adminis- .1 rs?4 - ter a medication to a patient in cardiac arrest. w4;F ' In addition, the conventional method of circular swirling of an ampule to ensure complete medication c,'3 transfer to the ampule's main body is not advised when , - y ` using amiodarone. Amiodarone's soap-like consistency s�x;n k. causes excessive foaming to occur when agitated, which d '% can make medication removal difficult and reduce the - k.. overall amount of drug within the ampules main body. Tap the ampule neck lightly to ensure medication transfer ° q to the ampule's body and avoid excessive shaking prior to - ;, use to reduce foaming. P ;'� The slow but steady adoption of amiodarone °r The addition of amiodarone to EMS vehicles has been slow.This may be due in part to cost and the limited sur- vival data derived from the ARREST trial. Several larger ° - 1;`t°= EMS systems have jumped on the bandwagon and now stock amiodarone. Also, several states have added amio- darone to their oflists approved prehospital medications. • See Figure 2 for a sampling of EMS systems currently stocking amiodarone for use in modified VF/VT protocols. A local experience:The Austin/Travis County EMS System A fall conference date is planned. • The addition of IV amiodarone (single 300 mg bolus) for Watch future issues ofJ 1is for _ shock resistant VF/pulseless VT was implemented in the more information. Austin/Travis County (Texas)EMS System Nov. 1, 1999. From the implementation date to March 1, 2000, 26 - patients were treated for VF-Fourteen patients(54%)were initially converted into a rhythm other than VF from defib- -.-.. . - . -_ .. •-. dilation alone- --,-,, The remaining 12 patients remained in VF despite initial •.,;-1- 'countershocks and received 300 mg of IV amiodarone dur- ing additional resuscitation attempts. Of these 12 patients, three were discharged alive from the hospital (25%sur- vival rate in the subgroup). ` The combined overall survival-to-discharge rate For both- patient groups was 27% compared with a previously docu- `:` mented(1999 Austin/Travis County Cardiac Arrest Statistics)VF survival rate of 20%.This equates to an overall increase of 7% <, t • in the VF survival rate and a 5%increase in the group receiving • Y ' y --- ______ � t .. r 5 w y w+ AN OLD DRUG WITH NEW TRICKS {"r' v l' r r y =;x , z. amiodarone.Although these data are promising, the over- j all VF patient population is small and continued data col- PAI1AMEDIC . lection is needed to reach a definitive conclusion about amiodarone s effectiveness. i ' Refresher and Review Conclusion Although IV amiodarone is not included in the current Case-Based Approach • ACLS guidelines for the treatment of VT/VF,the American College of Cardiology/AHA committee on management of tEl acute myocardial infarction has recommended the drug's - use.The committee has identified amiodarone as a bench- j t.;,�sa�'s • cial, useful and effective agent for the treatment of sus- �{ C { mined monomorphic VT in patients with AM1 when VT is y• P a 1-ams her ;,. not accompanied by chest pain,pulmonary congestion or t B e,f I'e ' 1` t ` • hypotension.1334 I evlew - f 3 R - .- P t Data from the ARREST trial and other studies suggest ,?. that 1V amiodarone should become an option for manage- ment of the patient in refractory VF/VT. Although the 1 1,,•, - e than tOr d 2000 ACLS guidelines are yet to be published, many sys • - 7 5 case s all terns have already opted on the basis of available data to tj0ll5 - add 1V amiodarone to their guidelines for shock refractory :4114'1%. ::::-IC:rt.U...•.71;E:1.:T.gi.i. l VF/VT. Ul5Ronny Taylor,Lic-P,is clinical develo' r ,F-ca sV,^y arpmrnt and special projects on an- r Y- ra nator for the City of Austin (Texas)EMS clinical practice division and ,,,.r f ra a-F� ' s-.+ t * ,� a z,l' AustinfTravis County EMS System. ' ` T 7l , 14 3¢s 9. i-� :4-tg Edward Racist, MD, is the medical director for the City of 4 Nt'a.3 r - :t i. r h ! y Austin/Travis County(Texas)EMS Clinical Practice. tab, t ok S .a, 0 c 1 + .fig ".s. fJ r a s i.fin ( r tb 3 "#1 c Ks a m rs a� � r f -�-01ti . c r w " <.'c i "4 t''s ryl, e Ili; References s` r At 1. � z,_ t , eikti,F F -k -, R 1_Cummins RO,Ornato JP,et al:"Improving survival from sudden 'y-4 j ll' i' ( 1 r att tC i,Cr�trei a i 1i tar. t t ; Pro g - �za SMiel", 4 cardiac arrest The'chain of survival'concept." Circulation. ±� 3 a - 4.,. - -" 22(1):86-91,1991. + 1 1 rs :'i �1 tom+ It" c 1 r r s e r ki`}a 1. �+A - 2.Cummins RO,eel Advanced Cardiac Life Support.American Heart F tx11 1 fi .�Yr/ 1 tf fY#�.rl t t1it 1 L � i l-}'. i ytl4�i` t 4 r`" ; � . � � v..,,r t 1 Av1- Association.Dallas,1997.. t "r .1 , , s�-� AEr, 3.Harrison EE: "Lidocasne in prehospital countershock refractory 7 11` pt , ,spay' ventricular fibrillation." Annals of Emergency Medicine. 1.111,1.ri, t� t1K,+ j�t� s itf 10:420-423,1981. ,,�} t`{pa sy , ,., 4.Nowak RM,Bodnar TJ,et al: "Bretylium tosylate as initial treat- e p" ,. rnl � 1i - ment for cardiopulmonary arrest:Randomized comparison with :ill -'E41ip ss' y 011E 410�ltt(flake th placebo."Annals of Emergency Medicine.10:404-407,1981. I fe sf; r ti fftf� ��1 �: Il!�;, � 5_Haynes RE, Chinn TL,et aL- "Comparison of bretytium tosylate and lidocaine in management of out of hospital ventricular fibril- Questlo[sand;answers(wit)irationales)folld the i • lation: A randomized clinical trial." American Journal of giving students a chance to`apply their k npwledge as if they Cardiology.48:353-356,1981. were at the scene. 6.Marriott HJL,Conover MB:Advanced Concepts in Arrhythmias, ■A cross reference for scenarios dealing with trauma, third edition.Mosby.St.Louis,1998. pediatrics,geriatrics,chief complaint,and specific diagnosis 7.Kudenchuk PJ, Cobb LA,et al: "Amiodarone for resuscitation is included. after out-of-hospital cardiac arrest due to ventricular fibrillation." Illi Hot topics include:pediatric trauma,endocrine emergencies New EnglandJournal of Medicine.341:871-87B,1999. . 8.Gonzalez E:"Pharmacologic interventions for refractory ventricu- (other than diabetes),neonatal emergencies,and patients- lar fibrillation."Pharmacist Reporter.4(5):49-52,1999. with tubes and shunts. 9.Physician's Desk Reference, 54th ed. "Cordarone Intravenous." May 1999. USb Montvale,NJ.3,229-3,231,2000. Approx.288 pp./Approx.5D illus. v4 Y 10.Gonzalez E,Kannewurf B,Ornato J:"Intravenous amiodarone for ISBN:O-8151-1729-9(303521 ventricular arrhythmias:overview and clinical use."Resuscitation- 39:33-12,1998. '69, _ 41 rii * 11.Bauman JL: "introduction: Amiodarone from last to first-line antiarrhythmic therapy."Wyeth-Ayerst Laboratories educational Call tO6a� to order/ rde__® Hoyt ucatio 17�,1999. 12.H t BT:"Intravenous amiodarone:Advances in treating ventricu- lar tachycardia/fibrillation."Resident Reporter.4(2):23-28,1999. Call toll-free: rrz ` -ta � '. 13.Peter).Kudenchuk,MD:Report given at the 70th Scientific Ses- sions of the American Heart Association.Orlando.Nov.12,1997. or (314) 872-8370 14.Ryan TJ,Anderson IL,et al: "ACCIAHA guidelines for the man- Or order by website: www:rlosby.co ill agement of patients with acute myocardial infarction."Circulation. FSF-556 94:2,341-2,350,1996. For More Information Circle 1169 On Reader Service Card 15.Package insert. Cordarone(amiodarone HCI). Wyeth Laborato- ries,Revised May 7,1999. Chapter I Overview of Ambulance Fee Schedule 1 CHAPTER I: OVERVIEW OF AMBULANCE FEE SCHEDULE OBJECTIVE 2 BACKGROUND 2 Current Payment System 2 BBA 3 Negotiated Rulemaking Process 4 PROPOSED RULE 5 Negotiated Rulemaking Committee's Recommendations 5 Other Items Included in Proposed Rule 5 PROGRAM MEMORANDUM AB-00-88 6 NEW CATEGORIES OF AMBULANCE SERVICES 7 Ground Ambulance Services 7 Air Ambulance Services 9 Changes Related to the Fee Schedule 10 OVERVIEW OF THE TRANSITION TO A FEE SCHEDULE 11 Transition Schedule 11 Calculating the Blended Rate During the Transition 11 COMPONENTS OF THE AMBULANCE FEE SCHEDULE 12 Ground Ambulance Services 12 Air Ambulance Services 13 DESCRIPTION OF FEE SCHEDULE COMPONENTS 13 Ground Ambulance Services 13 Air Ambulance Services 15 ZIP CODE DETERMINES APPLICABLE FEE SCHEDULE AMOUNT 17 1 December 2000 Chapter I Overview of Ambulance Fee Schedule 2 • OBJECTIVE This chapter provides an overview of the Ambulance Fee Schedule. It also introduces terminology and concepts that will facilitate understanding of the detailed discussion in later chapters. BACKGROUND Current Payment System The Medicare program pays for ambulance services Medicare program on a reasonable cost basis when furnished by a pays for ambulance provider and on a reasonable charge basis when services on a furnished by a supplier. For purposes of this reasonable cost basis discussion, the term "provider" means all Medicare- when furnished by a participating institutional providers that submit claims provider and on a for Medicare ambulance services, such as hospitals reasonable charge (including critical access hospitals), skilled nursing basis when furnished facilities (SNFs), and home health agencies (HHAs). 4-1110 by a supplier The term "supplier" means an entity that is independent of any provider. The reasonable charge methodology which is the basis of payment for ambulance services furnished by ambulance • The term "provider" suppliers is determined by the lowest of the means all Medicare- customary, prevailing, actual, or inflation indexed participating charge. institutional Following are the current billing methods for providers that submit ambulance services: claims for Medicare ambulance services: • Method 1 is an all-inclusive charge reflecting all hospitals (including services, supplies, and mileage. CAHs), SNFs, and HHAs • Method 2 is one charge reflecting all services and supplies (base rate) with a separate charge for • The term "supplier" mileage. means an entity that is independent of any • Method 3 is one charge for all services and provider mileage, with a separate charge for supplies. • Method 4 is separate charges for services, mileage, and supplies. O 2 December 2000 Chapter I Overview of Ambulance Fee Schedule 3 All providers are currently billing Method 2. Over the past 20 years, Congress has been moving toward fee schedules and prospective payment systems for Medicare payment. In the case of ambulance services, the reasonable charge methodology has resulted in a wide variation of payment rates for the same service depending on location. In addition, this payment methodology is administratively burdensome, requiring substantial recordkeeping for historical charge data. The Balanced Budget Act of 1997 (BBA) mandated the establishment of a fee schedule for payment of ambulance services. BBA Section 4531 (b) (2)of the BBA added a new section BBA-97 requires fee 1834 (I)to the Social Security Act, which mandates schedule for all implementation of a national fee schedule for ambulance services ambulance services furnished as a benefit under Medicare Part B. This section requires that in establishing the fee schedule, HCFA will: • Establish mechanisms to control increases in expenditures for ambulance services under Part B of the Medicare program; • Establish definitions for ambulance services that • link payments to the type of services furnished; • Consider appropriate regional and operational differences; • Consider adjustments to payment rates to account for inflation and other relevant factors; • Limit payment for ambulance covered services to the lower of actual billed charges or the Ambulance Fee Schedule amount; • Phase in the fee schedule in an efficient and fair manner; and, 3 December 2000 Chapter I Overview of Ambulance Fee Schedule 4 • Required mandatory assignment for all supplier ambulance services. Mandatory assignment required for all BBA required that total payments under the ambulance services Ambulance Fee Schedule be budget neutral. • Negotiated Rulemaking Process BBA provided that the Ambulance Fee Schedule be BBA provided that the established through the negotiated rulemaking Ambulance Fee process described in the Negotiated Rulemaking Act Schedule be of 1990. established through the negotiated A committee chartered under the Federal Advisory rulemaking process Committee Act conducted negotiations. HCFA used described in the the services of an impartial convener to help identify Negotiated interests that would be significantly affected by the Rulemaking Act of proposed rule and the names of persons who were 1990 willing and qualified to represent those interests. The • Negotiated Rulemaking Committee on the Medicare Ambulance Services Fee Schedule consisted of national representatives of interests that were likely to be significantly affected by the fee schedule. The committee recommendations have been included in the proposed rule. 4 December 2000 Chapter I Overview of Ambulance Fee Schedule 5 • Proposed Rule PROPOSED RULE • Published On HCFA published a proposed rule in the Federal 9/12/00 Register on September 12, 2000. The proposed rule • 60-Day Comment set forth requirements for the new Ambulance Fee Period Schedule as required by BBA-97. HCFA plans to implement the fee schedule effective for ambulance services provided on or after January 1, 2001. However, the number and content of comments as well as proposed legislation could cause a delay. Note: In the event the Ambulance Fee Schedule is delayed, HCFA will announce a new effective date. All other provisions in the proposed rule except for the fee schedule and mandatory assignment will be implemented on January 1, 2001. Negotiated Rulemaking Committee's Recommendations • The definitions and RVUs for each category of service. • An emergency response adjustment factor. • Application of Ambulance Fee Schedule to all entities. • Payment adjustments to reflect geographical variations. • Separate payment for mileage and base rate. • Establishment of an overall structure of the fee schedule. • Ambulance inflation factor. • A four-year payment transition period. Other Items Included in Proposed Rule 110 5 December 2000 Chapter I Overview of Ambulance Fee Schedule 6 • Updated coverage of ambulance services. • Revised Physician Certification Requirements. • Development of a conversion factor. • The base rate will include the transportation cost and all items and services furnished with the ambulance service. • Regardless of local or state ordinances, payment rates are based on actual service required for condition of beneficiary. • Mandatory assignment. PROGRAM MEMORANDUM AB-00-88 Program Memorandum (PM)AB-00-88, dated Program Memorandum September 18, 2000 instructs intermediaries and AB-00-88 carriers about the Ambulance Fee Schedule. The PM includes an effective date of January 1, 2001 with a • Published on disclaimer that, the final rule implementing the fee September 18, 2000 schedule had not been published. If the fee schedule • Includes instructions is not implemented on January 1, 2001, HCFA plans implementing the to implement all the provisions included in the PM Ambulance Fee except for the fee schedule, mandatory assignment Schedule for claims paid by suppliers and payment based on beneficiary's condition. The fee schedule is effective for claims with dates of service on or after implementation of the fee schedule. Ambulance services covered under The fee schedule is Medicare will then be paid based on the lower of the effective for claims with actual billed amount or the Ambulance Fee Schedule dates of service on or amount. The fee schedule will be phased in over a after the implementation four-year period. When fully implemented, the fee of the fee schedule. schedule will replace the current retrospective Payment based on lower reasonable cost reimbursement system for providers of the actual billed and the reasonable charge system for ambulance amount or the fee suppliers. The carrier reimbursement rate will be schedule amount. based on the supplier's current billing methodology during the transition period. 6 December 2000 Chapter I Overview of Ambulance Fee Schedule 7 • This manual provides payment and billing concepts to implement the fee schedule that applies to all ambulance services. This includes volunteer, municipal, private, independent, and institutional providers, e.g., hospitals, critical access hospitals, skilled nursing facilities and home health agencies. NEW CATEGORIES OF AMBULANCE SERVICES Ground Ambulance Services There are seven categories of ground ambulance services and two categories of air ambulance services under the fee schedule. (Note: "ground" refers to both land and water transportation.) a. Basic Life Support (BLS) -When medically necessary, the provision of BLS services as defined in the National EMS Education and Practice Blueprint for the EMT- Basic, including the establishment of a peripheral intravenous line. b. Basic Life Support (BLS) - Emergency - When medically necessary, the provision of BLS services, as specified above, in the context of an emergency response. An emergency response is one that, at the time the ambulance is called, is provided after the sudden onset of a medical condition manifesting itself by acute symptoms of sufficient severity such that the absence of immediate medical attention could reasonably be expected to result in placing the beneficiary's health in serious jeopardy; in impairment to bodily functions; or in serious dysfunction to any bodily organ or part. An emergency response does guarantee that Medicare will pay as emergency service. Medicare pays for the appropriate services rendered for the beneficiary's condition. c. Advanced Life Support, Level 1 (ALS1) - When medically necessary, the provision of an assessment by an advanced life support (ALS) provider or supplier or the provision of one or more ALS interventions. An ALS provider/supplier is defined as a provider trained to the level of the EMT- . 7 December 2000 Chapter I Overview of Ambulance Fee Schedule 8 • Intermediate or Paramedic as defined in the National EMS Education and Practice Blueprint. An ALS intervention is defined as procedure beyond the scope of an EMT-Basic as defined in the National EMS Education and Practice Blueprint. • d. Advanced Life Support, Level 1 (ALS1) - Emergency- When medically necessary, the provision of ALS1 services, as specified above, in the context of an emergency response. An emergency response is one that, at the time the ambulance supplier is called, is provided after the sudden onset of a medical condition manifesting itself by acute symptoms of sufficient severity such that the absence of immediate medical attention could reasonably be expected to result in placing the beneficiary's health in serious jeopardy; in impairment to bodily functions; or in serious dysfunction to any bodily organ or part. An emergency response does guarantee that Medicare will pay as emergency service. Medicare pays for the appropriate services rendered for the beneficiary's condition. e. Advanced Life Support, Level 2 (ALS2) - When medically necessary, the administration of three or more different medications and the provision of at least one of the following ALS procedures: Manual defibrillation/cardioversion Endotracheal intubation Central venous line Cardiac pacing Chest decompression Surgical airway Intraosseous line f. Specialty Care Transport(SCT) -When medically necessary, for a critically injured or ill beneficiary, a level of inter-facility service provided beyond the scope of the paramedic as defined in the National EMS Education and Practice Blueprint. This is necessary when a beneficiary's condition requires ongoing care that must be provided by one or more health professionals in an appropriate specialty area, e.g., nursing, medicine respiratory care, • 8 December 2000 Chapter I Overview of Ambulance Fee Schedule 9 cardiovascular care, or a paramedic with additional training. g. Paramedic Intercept (P1) - Paramedic intercept services are ALS services provided by an entity that does not provide the ambulance transport. Under a limited number of circumstances, Medicare payment may be made for these services. No mileage is paid for this benefit. For a description of these • services see PM B-99-12 dated March 1999 and PM B-00-01 dated January 2000, both titled Paramedic Intercept Provisions of the BBA of 1997. Air Ambulance Services There are twd categories of air ambulance services: fixed wing (airplane)and rotary wing (helicopter) aircraft. The higher operational costs of the two types of aircraft are recognized with two distinct payment amounts for air ambulance mileage. The air ambulance mileage rate is calculated per actual loaded (patient onboard) miles flown and is expressed in statute miles (not nautical miles). a. Fixed Wing Air Ambulance (FW) - Fixed wing air ambulance is furnished when the beneficiary's medical condition is such that transport by ground ambulance, in whole or in part, is not appropriate. Generally, transport by fixed wing air ambulance may be necessary because the beneficiary's condition requires rapid transport to a treatment facility, and either great distances or other obstacles, e.g., heavy traffic, preclude such rapid delivery to the nearest appropriate facility. Transport by fixed wing air ambulance may also be necessary because the beneficiary is inaccessible by a land or water ambulance vehicle. b. Rotary Wing Air Ambulance (RW) - Rotary wing air ambulance is furnished when the beneficiary's medical condition is such that transport by ground ambulance, in whole or in part, is not appropriate. Generally, transport by rotary wing air 9 December 2000 Chapter I Overview of Ambulance Fee Schedule 10 ambulance may be necessary because the beneficiary's condition requires rapid transport to a treatment facility, and either great distances or other obstacles, e.g., heavy traffic, preclude such rapid delivery to the nearest appropriate facility. Transport by rotary wing air ambulance may also be necessary because the beneficiary is inaccessible by a land or water ambulance vehicle. l Changes Related to the Fee Schedule • A base rate payment plus a separate payment for mileage. • Eventual elimination of a separate payment for items and services furnished under the ambulance benefit. • Payment for items and services is included in the fee schedule payment. Such items and services include but are not limited to oxygen, drugs, extra attendants, and EKG testing -- but only when such items and services are both medically necessary and covered by Medicare under the ambulance benefit. An exception to this preclusion exists during the transition period for those billing under Methods 3 and 4 for carriers. • Medicare pays only for the category of service provided and then only when the service is medically necessary and relevant to beneficiary's condition. • 10 December 2000 Chapter I Overview of Ambulance Fee Schedule 11 OVERVIEW OF THE TRANSITION TO A FEE SCHEDULE Transition Schedule Payment under the fee schedule will be phased in over a four-year period. In the first year, the fee schedule amount will comprise only 20% of the amount allowed from Medicare. The remaining 80% of the allowed amount will be based on the provider's reasonable cost or the supplier's reasonable charge. The fee schedule amount will increase each calendar year as a percentage of the total allowed amount from Medicare until it reaches 100% in year 4. During the transition, the amount allowed for an ambulance service will be the lower of the submitted charge or a blended rate that includes both a fee schedule component and a provider's reasonable cost or a supplier's reasonable charge. Payment amount is subject to any remaining deductible and coinsurance. The phase-in schedule is as follows: 9 Fee Schedule Cost/Charge Percentage Percentage Year 1 20% 80% Year 2 50 50 Year 3 80 20 Year 4 100 0 Calculating the Blended Rate During the For services furnished Transition during the transition • period, payment of Payment of ambulance services currently follows one ambulance services will of two methodologies. be a blended rate that consists of a percentage Suppliers are paid based on a reasonable charge of both a fee schedule methodology. and a provider or supplier's current Providers are paid based on the provider's interim payment methodology rate (which is a percentage based on the provider's historical cost-to-charge ratio multiplied by the 11 December 2000 Chapter I Overview of Ambulance Fee Schedule 12 submitted charge) and then cost-settled at the end of ' the provider's fiscal year. For services furnished during the transition period, payment of ambulance services will be a blended rate that consists of a percentage of both a fee schedule and a provider or supplier's current payment methodology. For suppliers, the blended rate includes both a portion of the reasonable charge and the fee schedule amount. To implement the transition to the fee schedule, the reasonable charge for each supplier is the reasonable charge for 2000 adjusted for each year of the transition period by the ambulance inflation factor as published by HCFA. Intermediaries must determine both the reasonable cost for a service furnished by a provider and the fee schedule amount for the service, then apply the appropriate percentage to each such amount to derive a blended-rate payment amount applicable to the service. The following sections explain the items that are used to arrive at a fee schedule amount The contractors' systems will do this automatically. These sections are presented to further your understanding of how the fee schedule amount is derived. COMPONENTS OF THE AMBULANCE FEE Components of the SCHEDULE Ground Ambulance Fee Schedule Ground Ambulance Services • Conversion Factor The fee schedule amount comprises: • RVU • GAF • A money amount that serves as a nationally • Loaded Mileage Rate uniform base rate, called a "conversion factor" Rural Mileage (CF), for all ground ambulance services. • Adjustment • A relative value unit(RVU) assigned to each category of ground ambulance service. • A geographic adjustment factor(GAF)for each Ambulance Fee Schedule area (geographic 12 December 2000 Chapter I Overview of Ambulance Fee Schedule 13 practice cost index (GPCI)). • A nationally uniform loaded mileage rate. • A rural adjustment on loaded mileage for services furnished in a rural area. Air Ambulance Services Components of the Air For air ambulance services, the fee schedule amount Ambulance Fee includes: Schedule • A nationally uniform base rate for fixed wing and a • Uniform Base Rate nationally uniform base rate for rotary wing. for fixed wing and rotary wing • A geographic adjustment factor(GAF)for each • GAF Ambulance Fee Schedule area (GPCI). • Uniform loaded mileage rate for each • A nationally uniform loaded mileage rate for each type of air service type of air service. • Rural Mileage Adjustment • A rural adjustment to the base rate and mileage for services furnished in a rural area. DESCRIPTION OF FEE SCHEDULE COMPONENTS Ground Ambulance Services Conversion Factor in Proposed Rule is (1) Conversion Factor $157.52 The conversion factor (CF) is a money amount used to develop a base rate for each category of ground ambulance service. The CF will be updated as necessary. The CF included in the proposed rule is $157.52. 13 December 2000 Chapter I Overview of Ambulance Fee Schedule 14 • (2) Relative Value Units (RVU) Relative value units (RVUs)set a numeric value for The RVUs are as ambulance services relative to the value of a base follows: level ambulance service. Since there are marked differences in resources necessary to furnish the Service Level RVU various levels of ground ambulance services, different levels of payment are appropriate for the various BLS 1.00 levels of service. The different payment amounts are BLS - Emergency 1.60 based on level of service. An RVU expresses the ALS1 1.20 constant multiplier for a particular type of service ALS1-Emergency 1.90 (including, where appropriate, an emergency ALS2 2.75 response). An RVU of 1.00 is assigned to the BLS of SCT 3.25 ground service. Higher RVU'values are assigned to PI 1.75 the other types of ground ambulance services, which require more service than BLS. (3) Geographic Adjustment Factor(GAF) The GAF for the The GAF is one of two factors intended to address Ambulance Fee regional differences in the cost of furnishing 411 Schedule uses the non- ambulance services. The GAF for the Ambulance facility practice expense Fee Schedule uses the non-facility practice expense of the geographic of the geographic practice cost index (GPCI) of the practice cost index Medicare physician fee schedule to adjust payment to (GPCI) of the Medicare account for regional differences. Thus, the physician fee schedule geographic areas applicable to the Ambulance Fee to adjust payment to Schedule are the same as those used for the account for regional physician fee schedule. differences The location where the beneficiary was put into the ambulance ("point of pickup") establishes which GPCI applies. For multiple vehicle transports, each leg of the transport is separately evaluated for the applicable GPCI. Thus,for the second (or any subsequent) leg of a transport, the point of pickup establishes the applicable GPCI for that portion of the ambulance transport. For ground ambulance For ground ambulance services, the applicable GPCI services, the applicable is multiplied by 70% of the base rate. Again, the base GPCI is multiplied by rate for each category of ground ambulance services 70% of the base rate is the CF multiplied by the applicable RVU. The GPCI is not applied to the mileage factor. • 14 December 2000 Chapter I Overview of Ambulance Fee Schedule 15 (4) Mileage The Ambulance Fee Schedule provides a separate The mileage rate for all payment amount for mileage. The mileage rate for all categories of ground categories of ground ambulance services is $5 per ambulance services is loaded statute mile. Paramedic Intercept has no $5 per loaded statute mileage payment. mile. Paramedic Intercept has no mileage (5)Adjustment for Mileage for Services Furnished in Rural Areas payment. Payment is adjusted upward for ambulance services that are furnished in rural areas to account for the higher costs per ambulance trip that are typical of rural operations where fewer trips are made in any given period. For ground ambulance services, the rural adjustment is a 50% increase in the mileage rate to $7.50 per loaded statute mile for the first 17 miles. The point of pickup is identified by the zip code and establishes whether a rural adjustment applies. The point of pickup for each leg of a multi-leg transport is separately evaluated for a rural adjustment 111 application. Thus, for the second (or any subsequent) leg of a transport, the zip code of the point of pickup establishes whether a rural adjustment applies to such second (or subsequent)transport. For all categories of ground ambulance services except paramedic intercept, a rural area is defined as a U.S. Postal Service zip code that is located, in whole or in part, outside of either a Metropolitan Statistical Area (MSA) or a New England County Metropolitan Area (NECMA), or is an area wholly within an MSA or NECMA that has been identified as rural under the "Goldsmith Modification." The paramedic intercept benefit is based on certain services provided in a rural area. Though no mileage is paid the zip code is required. See PM B-00-01 for details. HCFA will furnish contractors electronic files that identify a zip code as rural or urban. There is no conversion Air Ambulance Services factor or RVU applicable 15 to air ambulance December 2000 services Chapter I Overview of Ambulance Fee Schedule 16 ,41) (1) Base Rates Each type of air ambulance service has a base rate. The base rate for a fixed wing ambulance service is $2,213.00. The base rate for a rotary wing ambulance service is $2,573.00. There is no conversion factor applicable to air ambulance services. Also, air ambulance services have no RVUs. (2) Geographic Adjustment Factor The GAF, as described above for ground ambulance services, is applied in the same manner to air ambulance services. However, for air ambulance services, the applicable GPCI is applied to 50% of each of the base rates (fixed and rotary wing). The mileage rate for (3) Mileage fixed wing ambulance services is $6 per loaded The fee schedule for air ambulance services provides statute mile flown. The a separate payment for mileage. The mileage rate for mileage rate for rotary fixed wing ambulance services is $6 per loaded wing ambulance statute mile flown. The mileage rate for rotary wing services is $16 per ambulance services is $16 per loaded statute mile loaded statute mile flown. flown. (4)Adjustment for Services Furnished in Rural Areas Payment is increased for air ambulance services that are furnished in rural areas. For air ambulance services, the rural adjustment is an increase of 50% of the base rate and mileage. A rural adjustment is determined by the point of pickup. • 16 December 2000 Chapter I Overview of Ambulance Fee Schedule 17 ZIP CODE DETERMINES APPLICABLE FEE SCHEDULE AMOUNT The zip code of the point of pickup determines both The zip code of the point the appropriate payment and any rural adjustment. If of pickup determines the ambulance transport required a second or both the appropriate subsequent leg, then the zip code of the point of payment and any rural pickup of each leg will determine both the applicable adjustment payment for such leg and whether a rural adjustment applies to such leg. Accordingly, the zip code of the point of pickup must be reported on every claim to determine both the correct payment and any rural adjustment. HCFA will furnish contractors electronic HCFA will furnish contractors electronic files that files that identify a zip identify a zip code as rural or urban. code as rural or urban 17 December 2000 Chapter II Intermediary Coverage and Related Issues CHAPTER II - INTERMEDIARY COVERAGE AND RELATED ISSUES FOR THE AMBULANCE FEE SCHEDULE 1 OBJECTIVE 1 COVERAGE REQUIREMENTS 2 CATEGORIES OF SERVICE 2 Basic Life Support (BLS) 2 Basic Life Support— Emergency 2 Advanced Life Support, Level 1 (ALS1) 3 Advanced Life Support, Level 1 — (ALS1) Emergency 3 Advanced Life Support, Level 2 (ALS2) 4 Specialty Care Transport (SCT) 4 Paramedic Intercept 4 Fixed Wing Air Ambulance (FW) 4 Rotary Wing Air Ambulance (RW) 5 CERTIFICATION FOR HOSPITAL SERVICES 5 SPECIAL CIRCUMSTANCES 6 Pronouncement of Death 6 Multiple Patients 7 Multiple Arrivals 7 Service Provided 7 MEDICAL REVIEW OF AMBULANCE SERVICES 9 REVIEW CONSIDERATIONS RELATED TO THE AMBULANCE FEE SCHEDULE 9 Category of Service 9 Medical Conditions List 10 Non-Emergency Transports 10 December 3,2000 it Chapter II Intermediary Coverage and Related Issues 1 CHAPTER II - INTERMEDIARY COVERAGE AND RELATED ISSUES FOR THE AMBULANCE FEE SCHEDULE OBJECTIVE The objective of the Coverage and Related Issues chapter is to provide information on coverage criteria related to the ambulance fee schedule. Participants will learn about the following in the course of this chapter: 1. Medicare coverage requirements for ambulance services. 2. New aspects of coverage related to the ambulance fee schedule. • December 3,2000 Chapter II Intermediary Coverage and Related Issues 2 COVERAGE REQUIREMENTS Many of the Medicare coverage requirements for ambulance services have not changed under the ambulance fee schedule. All of the requirements are included in the following instructions: Medicare Intermediary Manual, Pub. 13-3, Section 3114 and Section 3322 Program Memorandum AB-99-94 Program Memorandum AB-00-88 Program Memorandum AB-00-103 Federal Register, Vol. 65, No. 177, 9/12/00, 55078—55100 42 CFR 410.40 CATEGORIES OF SERVICE Categories of The new ambulance fee schedule has seven categories of Service ground (land or water)ambulance services and two categories of air ambulance services. Paramedic intercept, 1. Basic Life advanced life support level 2, fixed wing air ambulance, and Support (BLS) rotary wing air ambulance assume an emergency condition 2. BLS-Emergency 3. Advanced Life Basic Life Support(BLS) Support 1 (AL$1) The Basic Life Support category is the provision of BLS services as defined in the National EMS Education and 4. ALS1-Emergency Practice Blueprint for the EMT- Basic, including the 5. ALS2 establishment of a peripheral intravenous line. 6. Specialty Care Transport (SCT) Basic Life Support— Emergency 7. Paramedic The Basic Life Support— Emergency category is the Intercept (PI) provision of BLS services, as specified above, in the context 8. Fixed Wing Air of an emergency response. Ambulance (FW) An emergency response is one that, at the time the 9. Rotary Wing Air ambulance supplier is called, is provided after the sudden Ambulance (RW) onset of a medical condition manifesting itself by acute symptoms of sufficient severity such that the absence of immediate medical attention could reasonably be expected to result in: December 3,2000 Chapter II Intermediary Coverage and Related Issues 3 1. placing the beneficiary's health in serious jeopardy; 2. impairment to bodily functions; or 3. serious dysfunction to any bodily organ or part. Advanced Life Support, Level 1 (ALS1) The Advanced Life Support, Level 1 category is the provision of an assessment by an advanced life support(ALS) provider or supplier or the provision of one or more ALS interventions. An ALS provider/supplier is defined as a provider trained to the level of the EMT-Intermediate or Paramedic as defined in the National EMS Education and Practice Blueprint. An ALS intervention is defined as procedure beyond the scope of an EMT-Basic as defined in the National EMS Education and Practice Blueprint. ALS Assessment is an assessment performed by an ALS crew that results in the determination that the patient's condition requires an ALS level of care, even if no other ALS intervention is performed. In the above situation, the EMT-Intermediate or Paramedic must actually ride on the BLS transport for the BLS ambulance provider to bill an ALS service. Advanced Life Support, Level 1 — (ALS1) Emergency The Advanced Life Support, Level 1 — Emergency Response category is defined as the provision of ALS1 services, as specified above, in the context of an emergency response. An emergency response is one that, at the time the ambulance supplier is called, is provided after the sudden onset of a medical condition manifesting itself by acute symptoms of sufficient severity such that the absence of immediate medical attention could reasonably be expected to result in: 1. placing the beneficiary's health in serious jeopardy; 2. impairment to bodily functions; or 3. serious dysfunction to any bodily organ or part. December 3,2000 Chapter II Intermediary Coverage and Related Issues 4 Advanced Life Support, Level 2 (ALS2) The Advanced Life Support, Level 2 category is: 1. The administration of three or more different medications, and 2. The provision of at least one of the following ALS procedures: Manual defibrillation/cardioversion Endotracheal intubation Central venous line Cardiac pacing Chest decompression Surgical airway Intraosseous line Specialty Care Transport(SCT) The specialty care transport category is a level of inter- facility service provided for a critically injured or ill beneficiary beyond the scope of the paramedic as defined in the National EMS Education and Practice Blueprint. This is necessary when a beneficiary's condition requires ongoing care that must be provided by one or more health professionals in an appropriate specialty area, e.g., nursing, medicine respiratory care, cardiovascular care, or a paramedic with additional training. Paramedic Intercept Paramedic intercept services are ALS services provided by an entity that does not provide the ambulance transport. Under a limited number of circumstances, Medicare payment may be made for these services. For a description of these services see PM B-99-12 dated March 1999 and PM B-00- 01 dated January 2000, both titled Paramedic Intercept Provisions of the BBA of 1997. Fixed Wing Air Ambulance (FW) The fixed wing air ambulance (airplane) category is services furnished when the beneficiary's medical condition is such that transport by ground ambulance, in whole or in part, is not appropriate. December 3,2000 Chapter II Intermediary Coverage and Related Issues 5 Transport by fixed wing air ambulance may be necessary because the beneficiary's condition requires rapid transport to a treatment facility, and either great distances or other obstacles, e.g., heavy traffic, preclude such rapid delivery to the nearest appropriate facility. Transport by fixed wing air ambulance may also be necessary because the beneficiary is inaccessible by a land or water ambulance vehicle. Rotary Wing Air Ambulance (RW) The rotary wing air ambulance (helicopter) category is furnished when the beneficiary's medical condition is such that transport by ground ambulance, in whole or in part, is not appropriate. Transport by rotary wing air ambulance may be necessary because the beneficiary's condition requires rapid transport to a treatment facility, and either great distances or other obstacles, e.g., heavy traffic, preclude such rapid delivery to the nearest appropriate facility. Transport by rotary wing air ambulance may also be necessary because the beneficiary is inaccessible by a land or water ambulance vehicle. CERTIFICATION FOR HOSPITAL SERVICES Providers must meet the certification requirements in the Medicare Intermediary Manual, Pub. 13-3, Section 3322. This section states: Certification by a physician in connection with ambulance services furnished by a participating hospital is required. In cases in which the hospital provides ambulance service to transport the patient from the scene of an accident and no physician is involved until the patient reaches the hospital, any physician in the hospital who examines the patient or has knowledge of the case may certify as to the medical need for the ambulance service. Therefore, providers are required to have a physician certification for emergency and non-emergency transports. December 3,2000 Chapter II Intermediary Coverage and Related Issues 6 SPECIAL CIRCUMSTANCES In the regulation for the Ambulance Fee Schedule, Medicare Special policies for some circumstances were clarified. Circumstances 1. Multiple Patients Pronouncement of Death 2. Multiple Arrivals The following information explains Medicare policy related to 3. Service Provided the death of a patient and the resultant effect on payment for ambulance services under the ambulance fee schedule. The death of a patient is recognized when the pronouncement of death is made by an individual legally authorized to do so by the state where the pronouncement is made. The following three scenarios that apply to payment for ambulance services when the beneficiary dies. 1. If the beneficiary is pronounced dead after the ambulance is called but before the ambulance arrives at the scene, payment may be made; however, neither mileage nor a rural adjustment would be paid. If a ground vehicle is dispatched, payment is made for a BLS service. If an air ambulance is dispatched, payment is made at the fixed wing or rotary wing base rate, as applicable. 2. Payment is made following the usual rules of payment (as if the beneficiary had not died) when: The beneficiary is pronounced dead after being loaded into the ambulance, regardless of whether the pronouncement is made during or subsequent to the transport. A determination of"dead on arrival" (DOA) is made at the facility to which the beneficiary is transported. 3. No payment will be made if the beneficiary was pronounced dead prior to the time the ambulance is called. December 3,2000 Chapter II Intermediary Coverage and Related Issues . 7 Multiple Patients An ambulance may transport more than one patient at a time, for instance, at the scene of a traffic accident. In this situation the payment should be prorated by the number of patients in the ambulance. The following are examples of how to apply this policy. 1. Two patients are transported at one time, one is a Medicare beneficiary and the other is not. Payment is based on one-half of the allowed amount for the level of • medically appropriate service furnished to the Medicare patient. 2. If both patients are Medicare beneficiaries, payment for each beneficiary is made based on half of the allowed amount for the level of medically appropriate services furnished to each patient. Multiple Arrivals When multiple units respond to a call for services, the entity that provides the transport for the beneficiary should bill Medicare for all services furnished. For example, a BLS and ALS entities respond to a call and the BLS entity furnishes the transport after an ALS assessment is furnished. The EMT— Intermediate or Paramedic from the ALS service accompanies the patient to the hospital in the BLS ambulance. The BLS entity will bill using the ALS1 rate since an ALS service was furnished. Medicare will pay the BLS entity at the ALS1 rate. The BLS entity and the ALS entity should settle payment for the ALS assessment. In the above situation, the EMT— Intermediate or Paramedic must actually ride on the BLS transport for the BLS ambulance provider to bill an ALS service. Service Provided Medicare pays only for the category of service provided and then only when the service is medically necessary, even if a local government requires an ALS response for all calls. December 3,2000 Chapter II Intermediary Coverage and Related Issues 8 However, until further notice, when an ALS ambulance provider furnishes BLS or BLS emergency services to a patient, the provider can submit and may be paid for ALS1 or ALS1 emergency services. December 3,2000 Chapter II Intermediary Coverage and Related Issues 9 MEDICAL REVIEW OF AMBULANCE SERVICES Claims will be reviewed in accordance with instructions in the Program Integrity Manual, Section 83-6-12. However, additional factors must also be taken into consideration based on the Ambulance Fee Schedule and Program Memorandum AB-99-83. Ambulance services are reviewed to determine if they met Medical Review the ambulance coverage criteria. A determination is made as to whether the patient's condition was such that another Other methods method of transportation was contraindicated. Medically contraindicated necessary transport by ambulance may include: 1. Emergency situations, e.g., accidents, injury; acute illness 2. Need for restraints 3. Unconsciousness or shock 4. Requiring emergency treatment during the trip 5. Requiring immobilization, i.e., fracture or the possibility of a fracture 9 6. Sustained acute stroke or myocardial infarction 7. Experiencing severe hemorrhage Please note this list is not all-inclusive. REVIEW CONSIDERATIONS RELATED TO THE AMBULANCE FEE SCHEDULE Because of the ambulance fee schedule billing requirements, additional factors must be taken into Review Under Fee consideration during the medical review process. Schedule 1. Category of Category of Service Service The documentation will be reviewed to determine if the 2. Medical category of service billed to Medicare is the category of Conditions List service that was provided, and that it was the category of 3. Non-emergency service that was medically necessary. Until further notice, Transport however, when an ALS ambulance provider furnishes BLS or BLS emergency services to a patient, a claim for ALS1 or ALS1 emergency services can be submitted. December 3,2000 Chapter II Intermediary Coverage and Related Issues 10 Medical Conditions List Addendum A (Medical Conditions List)was provided in the NPRM to solicit comments on the need for such a list in the support of the claims process. The conditions list was not a part of the negotiated rule committee agreement. We did not integrate this into the automated claims process but will consider doing so based,on comments on the NPRM. Therefore, the condition list could be a future adjustment to the claims process but will not be discussed in detail at this time. Addendum A can be used as a guide in determining medical necessity. This list identifies medical conditions, not diagnoses, which generally require ambulance services and the appropriate level of care. It includes non-emergency conditions; emergency medical conditions, traumatic and non-traumatic; and emergency and non-emergency conditions that warrant inter-facility transport services. Non-Emergency Transports 9 Ambulance transportation is covered when it meets medical Bed confinement necessity requirements described above. One of the primary criteria is met when determining factors of medical necessity for non-emergency the beneficiary is: transport is the status of whether the patient is "bed confined." For bed confinement, the following criteria must 1. Unable to get up be met: from bed without assistance 1. The beneficiary is unable to get up from bed without 2. Unable to ambulate assistance; 3. Unable to sit in a 2. The beneficiary is unable to ambulate; and chair or wheelchair 3. The beneficiary is unable to sit in a chair or wheelchair. All three of the above-listed components must be met in order for the patient to meet the requirements of the definition of"bed confined." The term applies to individuals who are unable to tolerate any activity out of bed. This term is not synonymous with "bed rest," "non-ambulatory," or "stretcher-bound." These criteria, as defined, are not meant to be the sole criteria in determining medical necessity. They are factors to be considered when making medical necessity determinations. December 3,2000 Chapter II Intermediary Coverage and Related Issues 11 Some non-emergency response services are actually Non-emergency scheduled. Scheduled services are generally regularly services may be: scheduled transportation for the diagnosis or treatment of a. patient's medical condition (e.g., transportation for dialysis.) 1. Scheduled, or 2. Unscheduled Unscheduled services generally pertain to non-emergency transportation for medically necessary services, e.g., from one facility to another. December 3,2000 Chapter IV Intermediary Payment and Reimbursement 1 • CHAPTER IV - INTERMEDIARY PAYMENT AND REIMBURSEMENT PAYMENT OF AMBULANCE SERVICES 1 OBJECTIVE 1 AMBULANCE FEE SCHEDULE 2 NEW PROVIDERS 4 GROUND AMBULANCE 4 AIR AMBULANCE 4 EMERGENCY RESPONSE ADJUSTMENT FACTOR.... 4 MULTIPLE PATIENTS 5 PRONOUNCEMENT OF DEATH 6 1111 MULTIPLE ARRIVALS 6 COMPONENTS OF THE FEE SCHEDULE 6 SERVICE LEVEL RVU 7 SERVICES FURNISHED IN RURAL AREAS ._ 8 MILEAGE 9 USING THE FEE SCHEDULE 10 DETERMINING FEE SCHEDULE AMOUNTS 11 PAYMENT EXAMPLE 13 December 2000 Chapter IV Intermediary Payment and Reimbursement 1 p PAYMENT OF AMBULANCE SERVICES OBJECTIVE The objective of this chapter is to provide the information that is needed to compute the payment due to Medicare providers for ambulance services. Participants will learn the following in the course of this chapter. 1. The Ambulance Fee Schedule will be phased in over a four-year transition beginning with the implementation of the fee schedule. 2. Payment rates will be made based on seven RVUs (Relative Value Units)with an additional payment for mileage. 3. Services provided in a rural area qualify for an increased adjustment. • December 2000 Chapter IV Intermediary Payment and Reimbursement 2 NOVERVIEW AMBULANCE FEE SCHEDULE Ambulance Fee Schedule Section 4531 (b) (2) of the Balanced Budget Act (BBA)of 1997 added a new section 1834 (I)to the • Mechanisms to control Social Security Act which mandates implementation increases in of a national fee schedule for ambulance services expenditures furnished as a benefit under Medicare Part B. This Payments made based section requires that in establishing the ambulance • on service provided fee schedule, HCFA will: • Payments adjusted for • Establish mechanisms to control increases in inflation expenditures for ambulance services under Part B • Four-year phase-in of of the Medicare program; fee schedule (calendar) • Establish definitions for ambulance services that • Services made on link payments to the type of service furnished and assignment basis are appropriate for the beneficiary's condition; • Consider appropriate regional and operational differences; • Consider adjustments to payment rates to account for inflation and other relevant factors; Ambulance fee schedule applies to: • Phase in the fee schedule in an efficient and fair manner; and, • All public or private • For profit or not-for- • Require payment for ambulance services be made profit only on an assignment-related basis. • Volunteer • Government-affiliated In addition, the BBA requires that ambulance services • Institutionally affiliated covered under Medicare be paid based on the lower • Wholly independent of the actual billed charge or the Ambulance Fee suppliers Schedule amount. The Ambulance Fee Schedule applies to all entities that furnish ambulance services, regardless of type. All public or private, for profit or not-for-profit, volunteer, government-affiliated, institutionally affiliated or owned, or wholly independent supplier ambulance companies, however organized, would be paid according to this ambulance fee schedule. December 2000 Chapter IV Intermediary Payment and Reimbursement 3 IMPLEMENTATION METHODOLOGY Ambulance claims from providers are currently paid based on the provider's interim rate (which is a percentage based on the provider's historical cost-to- charge ratio multiplied by the submitted charge) and then cost-settled at the end of the provider's fiscal year. The proposed ambulance fee schedule is to be phased in over a four-year period. Therefore, for dates of service (DOS) in the first year of transition, • Paid based on the providers will be paid based on 80 percent of the provider's interim current payment allowance (as described in Program rate Memorandum AB-99-73) plus 20 percent of the • Cost-settled at end ambulance fee schedule amount. of the provider's fiscal year via The ambulance fee schedule will be implemented as Medicare cost follows: report. Transition Former Fee Year Payment % Schedule % leak 1 80 20 2 50 50 _ 3 20 80 4 0 100 Currently, provider claims are paid based on the provider's interim rate and are cost settled at the end of the provider's fiscal year. Payments are made by the statutory ambulance inflation factor applied to the provider's cost per ambulance trip. The fee schedule transition will be phased in on a calendar year basis. Therefore, for providers that file cost reports on other than a CY basis, two different blended rates would apply. Effective for services furnished during the first year of transition, the proposed blended amount for provider claims would equal the sum of 80 percent of the current payment system amount and 20 percent of the ambulance fee schedule amount. The intent of implementing payment under the fee schedule at only 20 percent in the first year is to give ambulance providers a period of time to adjust to the new December 2000 Chapter IV Intermediary Payment and Reimbursement 4 110 payment amounts, since some providers may receive substantially lower payments than they do now. The Program's payment in all cases would be subject to the Part B coinsurance and deductible requirements. NEW PROVIDERS Since new providers would not have a cost per trip limit from the prior year, there would not be a cost per trip inflation limit applied to new providers in their first year of furnishing ambulance services. Seven Categories of Ground NINE CATEGORIES OF AMBULANCE SERVICES Service 1. Basic Life Support (BLS) Nine categories of ambulance services are 2. Basic Life Support— reimbursable under the new fee schedule. There are Emergency(BLS-ER) seven ground and two air: 3. Advanced Life Support, Level GROUND AMBULANCE 1 (ALS1) 4. Advanced Life Support Level 1 1. Basic Life Support (BLS) -Emergency(ALS1 — ER) 2. BLS— Emergency 5. Advanced Life Support Level 2 3 Advanced Life Support, Level 1 (ALS1) (ALS2) 4. ALS1 - Emergency 6. Specialty Care Transport 5. Advanced Life Support, Level 2 (ALS2) (SCT) 6. Specialty Care Transport (SCT) 7. Paramedic Intercept (P1) 7. Paramedic Intercept (PI) (carrier only) (carrier only) AIR AMBULANCE There are two categories of air ambulance services to Two Categories of Air distinguish fixed wing from rotary wing (helicopter) Ambulance aircraft. 1. Fixed Wing Air Mileage is expressed in statute (ground miles) not Ambulance (FW) nautical miles. The mileage rate will be calculated per actual loaded (patient onboard) miles flown. 2. Rotary Wing Air Ambulance (RW) 1. Fixed Wing Air Ambulance (FW) 2. Rotary Wing Air Ambulance (RW) EMERGENCY RESPONSE ADJUSTMENT FACTOR NDecember 2000 Chapter IV Intermediary Payment and Reimbursement 5 • An ambulance service that qualifies as an emergency response service will be assigned higher RVUs to Emergency Response recognize the additional costs incurred in responding Adjustment Factor immediately to an emergency medical condition. • Assignment of higher An immediate response is defined as one in which RVUs the ambulance provider begins as quickly as possible to take the steps necessary to respond to the call. • Only applicable to BLS The emergency response adjustment factor does not and ALS1 services apply to PI, ALS2, SCT, FW, or RW. Multiple Patients MULTIPLE PATIENTS • If both patients were If an ambulance transports more than one patient at a Medicare beneficiaries, time, payment will be prorated based on the payment would be one- ambulance fee schedule by the number of the half of the fee schedule patients in the ambulance. amount for each patient If two patients were transported at one time, and one • If only one of two was a Medicare beneficiary and the other was not, patients were Medicare Medicare will make payment based on one-half of the beneficiaries, payment ambulance fee schedule amount for the level of would be one-half of the medically appropriate service furnished to the Medicare patient. fee schedule amount The Medicare Part B assignment rules apply to this prorated payment. If both patients were Medicare beneficiaries, payment for each beneficiary will be made based on half of the ambulance fee schedule amount for the level of medically appropriate services furnished to each patient. The Medicare Part B coinsurance, deductible, and assignment rules apply to these prorated amounts. December 2000 Chapter IV Intermediary Payment and Reimbursement 6 PRONOUNCEMENT OF DEATH There are three scenarios that apply to ambulance Pronouncement of Death services and the pronouncement of death. • 3 scenarios apply The beneficiary is pronounced dead prior to the time that the ambulance is called, no payment would be • Payment is contingent made. upon when the beneficiary is pronounced dead in The beneficiary is pronounced dead after the relationship to when the ambulance is called but before the ambulance arrives ambulance is called at the scene, payment for an ambulance trip will be made at the BLS rate, but no mileage will be paid. If the beneficiary was pronounced dead after being loaded into the ambulance, full payment will be made. Multiple Arrivals MULTIPLE ARRIVALS • Medicare will make payment to the entity When multiple units respond to a call, Medicare will that provides pay the entity that provides the transportation for the transportation for the beneficiary. The transporting entity will bill Medicare. beneficiary For example: If BLS and ALS entities respond to a • ''If more than one call and the BLS entity furnishes the transportation entity provides after an ALS assessment is furnished, the BLS entity services, negotiation would bill Medicare using the ALS1 rate. The ALS of payment must be unit would not be entitled to bill Medicare since they made between did not provide the transport. providers Medicare would pay the BLS entity at the ALS1 rate. The BLS entity and the ALS entity would have to negotiate payment for the ALS assessment. Ground Ambulance Fee COMPONENTS OF THE FEE SCHEDULE Components GROUND AMBULANCE SERVICES 1. Conversion Factor 2. Relative Value Unit Conversion Factor (CF) 3. Geographic Practice Cost Index The CF is a money amount used to develop a base 4. National uniform rate for each category of ground ambulance service. mileage rate The CF will be updated by HCFA as necessary. 5. Additional amount for mileage in a rural area December 2000 Chapter IV Intermediary Payment and Reimbursement 7 • Relative Value Units (RVUs) RVUs set a numeric value for ambulance services relative to the value of a base level ambulance service. Since there are marked differences in resources necessary to furnish the various levels of ground ambulance services, different levels of payment are appropriate for the various levels of service. The different payment amounts are based on levels of service. An RVU expresses the constant multiplier for a particular type of service (including, where appropriate, an emergency response). An RVU of 1.00 is assigned to the BLS of ground service, i.e., BLS has an RVU of 1; higher RVU values are assigned to the other types of ground ambulance services, which require more services than BLS. The service levels and their associated RVUs are listed below. Service Level RVU BLS 1.00 BLS— Emergency 1.60 ALS1 1.20 ALS — Emergency 1.90 ALS2 2.75 SCT 3.25 PI 1.75 Geographic Adjustment Factor (GAF) The GAF is one of two factors intended to address The location where the regional differences in the cost of furnishing beneficiary was put in the ambulance services. ambulance ("point of pickup") establishes which The GAF for the ambulance schedule uses the non- GPCI applies. facility practice expense (PE) of the geographic practice cost index (GPCI) of the Medicare physician fee schedule to adjust payment to account for regional differences. Thus, the geographic areas applicable to the ambulance fee schedule are the same for those used for the physician fee schedule. December 2000 Chapter IV Intermediary Payment and Reimbursement 8 1111 The location where the beneficiary was put in the ambulance ("point of pickup")establishes which GPCI applies. For multiple vehicle transports, each leg of the transport is separately evaluated for the applicable GPCI. Thus, for second (or any subsequent) leg of a transport, the point of pickup establishes the applicable GPCI for that portion of the ambulance transport. For ground ambulance services, the applicable GPCI is multiplied by 70% of the base rate. The base rate for each category of ground ambulance service is the CF multiplied by the applicable RVU. The GPCI is not applied to the mileage factor. The physician fee schedule law requires that the GPCI be updated every 3 years. The next revision will be effective January 1, 2001. These have been published in the July 17, 2000 Proposed Rule (65 FR 44176). SERVICES FURNISHED IN RURAL AREAS Services furnished in Rural Areas: Payment is increased for ambulance services that are furnished in rural areas. This adjustment is made to • Increased adjustment cover the additional cost per ambulance trip of applies isolated, essential ambulance providers, for which there are not many trips furnished over the course of • Rural designation is a typical month because of a small rural population. made at the time the beneficiary is placed on The definition of a rural area is an area outside a the ambulance Metropolitan Statistical Area (MSA)or a New England County Metropolitan Area, or an area within an MSA identified as rural using the Goldsmith modification. The application of the rural adjustment will be determined by the geographic location at which the beneficiary is placed on board the ambulance. The rural adjustment would be made using the following methodology: 11111 December 2000 Chapter IV Intermediary Payment and Reimbursement 9 III Rural Adjustment Methodology • Ground —A 50 percent add-on ($7.50) is applied to the mileage payment rate for the first 17 loaded miles only. • Ground — 50% add-on to mileage for the first 17 • Air—A 50 percent add-on is applied to the base miles only rate and all of the loaded mileage. • Air—50% add-on to the base rate and all loaded miles MILEAGE Mileage Mileage will be paid separately from the base rate. • Paid in addition to • base payment rate The mileage rate with the implementation of the fee schedule is as follows: • For 2001 • $5 ground ➢ $5 ground • $6 fixed wing ➢ $6 fixed wing • $16 rotary wing ➢ $16 rotary wing USING THE FEE SCHEDULE HCFA will provide each intermediary with two files: a national zip code file and a national Ambulance Fee Schedule file. Each intermediary will program a link between the zip code file to determine the locality and the fee schedule file to obtain the fee schedule amount. The fee schedule locality is based on the point of pickup as identified by the zip code that is coded on the claim form. The intermediary will use the zip code as the point Of pickup to crosswalk to the appropriate fee schedule. December 2000 Chapter IV Intermediary Payment and Reimbursement 10 Determining Fee Schedule Amounts When an urban zip code is reported with a ground or air ambulance code, determine the amount for the service by using the fee schedule amount for the urban base rate. The mileage amount will be determined by multiplying the number of reported miles by the urban mileage rate. When a rural zip code is reported with a ground HCPCS code the amount for the service will be determined by using the fee schedule amount for the urban base rate. The mileage amount will be determined by multiplying the first 17 loaded miles by the urban mileage rate and then multiplying this by 1.5, multiplying the number of loaded miles in excess of 17 miles by the urban mileage rate, and adding the two mileage amounts. If a rural zip code is reported with an air HCPCS code, determine the amount for the service by using the fee schedule amount for rural base rate. To determine the amount allowable for the mileage, multiply the number of loaded miles by the rural mileage rate. December 2000 Chapter IV Intermediary Payment and Reimbursement 11 110 Amount Service Level RVUs CF Unadjusted adjusted Amount Loaded Rural Base by GCPI not mileage ground adjusted rate(UBR)t (70%of (30%of UBR) mileage* UBR) BLS 1.00 157.52 $157.52 $110.26 $47.26 $5.00 $7.50 BLS Emergency. 1.60 157.52 252.03 176.42 75.61 5.00 7.50 ALS1 1.20 157.52 189.02 132.31 56.71 5.00 7.50 ALS1-Emergency 1.90 157.52 299.29 209.50 89.79 5.00 7.50 ALS2 2.75 157.52 433.18 303.23 129.95 5.00 7.50 SCT 3.25 157.52 511.94 358.36 153.58 5.00 7.50 PI 1.75 157.52 275.66 192.96 82.70 (1)No Mileage Rate Amount Service Level Unadjusted Adjusted Amount oaded Rural air Rural air base rate by GPCI not mileage mileage** base rate*** adjusted (UBR)t (50%of (50%of UBR) UBR) FW $2,213.00 $1,106.50 $1,106.50 $6.00 $9.00 $3,319.50 RW 2,573.00 1,286.50 1,286.50_ 16.00 24.00 3,859.50 * A 50 percent add-on to the mileage rate(that is,a rate of$7.50 per mile)for each of the first 17 miles identified as rural. - The regular mileage allowance applies for every mile over 17 miles. ** A 50 percent add on to the air mileage rate is applied to every mile identified as rural. *** A 50 percent add-on to the air base is applied to air trips identified as rural. The payment rate for rural air ambulance(rural air mileage rate and rural air base rate)is 50 percent more than the corresponding payment rate for urban services(that is,the sum of the base rate adjusted by the geographic adjustment factor and the mileage). t This column illustrates the payment rates without adjustment by the GPCI. The conversion factor(CF)has been inflated for 2001. Legend Legend for Formulas ALS1 --Advanced Life Support,Level 1 CF conversion factor(ground=$157.52;air= 1.0). ALS2--Advanced Life Support, Level 2 GPCI practice expense portion of the BLS- Basic Life Support geographic practice cost index from the CF--Conversion Factor physician fee schedule. (The GPCI is determined by FW-Fixed Wing the address of the point of pickup.) GPCI--Practice Expense Portion of the MGR mileage ground rate(5.0). Geographic Practice Cost index from MAR mileage air rate(fixed wing rate=6.0, the Physician Fee Schedule helicopter rate=16.0). PI--Paramedic ALS intercept RA rural air adjustment factor(0.50 on RVUs-Relative Value Units entire claim). RW--Rotary Wing RG rural ground adjustment factor amount SCT--Specialty Care Transport (0.50 on first 17 miles). UBR--Unadjusted Base Rate RVUs relative value units(from chart). • December 2000 Chapter IV Fiscal Intermediary Payment and Reimbursement 15 • PAYMENT EXAMPLE Ground Ambulance, Rural (Hospital Based Provider) A Medicare beneficiary residing in a rural area in the state of Iowa was transported via ground ambulance from her home located in a rural area (non-MSA)to the nearest appropriate facility (Hospital A). Because the point of pick-up is in a rural area, under our proposal, a rural payment rate would apply. The total distance from the beneficiary's home to Hospital A is 14 miles. A BLS non-emergency transport was furnished. The level of service would be BLS (non- emergency). For Iowa, the GPCI = 0.882. The ambulance fee schedule amount would be calculated as follows— 14 mile trip = 14 miles at the rural payment rate plus 0 mile at the regular rate. Payment Rate (per the 2001 fee schedule for Payment of Ambulance Service) = [(RVU*(.3+(.7*GPCI)))*CF]+[(((1+RG)*MGR)*#MI LE17) +(MGR*#MILES>#17)] 2001 Fee Schedule for Payment of Ambulance Service for BLS non-Emergency Service Level RVUs CF Unadj.Base Amt.adj.by Amt.not Loaded Rural rate GCPI adjusted mileage ground mileage BLS 1.00 157.52 $157.52 $110.26 $47.26 $5.00 $7.50 STEP 1: DETERMINE THE PAYMENT RATE Payment Rate = [(1.00*(.3+(.7*.882)))*157.521+[(((1+.5)*5)*14)+(5*0)] $249.51 The payment of$249.51 is subject to Part B deductible and coinsurance requirements. • December 2000 Chapter IV Fiscal Intermediary Payment and Reimbursement 15 Since 2001 is the first year of a proposed 4-year transition period, the ambulance fee schedule payment rate would be multiplied by 20 percent. The total payment under the proposed fee schedule for 2001 is: Payment Rate = Fee Schedule * Transition Percentage Payment Rate = 249.51*0.2 Payment Rate = $49.90 STEP 2: DETERMINE THE TOTAL CHARGE UNDER THE CURRENT SYSTEM The remaining 80 percent of the payment rate is determined by the current payment system. For Fls, the current payment calculation is as follows: Assume that Hospital A's charge (HCB)for a BLS non-emergency service is $220.00, its charge for mileage (HCM) is $4.00 per mile, and its past year's cost-to-charge ratio (CCR) is 0.9. Also assuming that the beneficiary's Medicare Part B deductible has been met, the beneficiary's coinsurance liability for 2001 would be: Total Charge = HCB+(HCM*#MILES) Total Charge = 220+(4*14) Total Charge =$276.00 (Current system) COINSURANCE CALCULATION For 2001, the coinsurance is equal to 20 percent of: Total Rate = (0.80*Current System)+(0.20*FS) Total Rate = (0.80*276)+(49.90) Total Rate = (220.80+(49.90) Total Rate = $270.70 Coinsurance = 0.20*270.70 = $54.14 STEP 3: DETERMINE THE BLENDED PAYMENT For 2001, the transition payment rate is equal to: December 2000 Chapter IV Fiscal Intermediary Payment and Reimbursement 15 Transition Payment Rate = [0.80*((HCB)+(HCM* #MILES))*CCR]+[0.20*FS] Transition Payment Rate = [0.80*((220)+(4*14))*0.9]+[49.90]=$248.62 Assuming the Part B deductible is met: Medicare Program payment = (transition payment rate)— (coinsurance) Medicare Program payment = 248.62—54.14 Medicare Program payment = $194.48 ' j December 2000