Jonathan -

This is a common, understandable, and extremely dangerous point of
view.

First, the concept that a minor formatting error is the sort of
"violation" that was meant when the regulators outlawed "nonstandard"
transactions is, according to some of those same individuals,
incorrect.

Second, CMS officials responsible for enforcement said, at the recent
WEDI SNIP Summit in Chicago, that they will be initiating enforcement
activities on a complaint-driven basis.  No one is going to be sifting
through your transaction history looking for misplaced situational
data elements.  They emphasized that they understand the need to
maintain cash flow through the transition, and DO NOT want
transactions to be suspended due to minor technical inconsistencies.

Third, when enforcement is required, CMS will take a
"complaint-to-compliant" approach, rather than a
fines-and-civil-penalties approach.  If one of your trading partners
is complying with CMS's enforcement provisions already, sending
increasingly compliant transactions, how will you know?  Who are you
to suspend their transactions when they are already cooperating with
CMS?

Fourth and finally, we are not talking about two trading partners here
-- we are talking about an entire industry that represents 1/7 of the
US economy, all transitioning to a new technology at once.  

Even for a single pair of trading partners, the potential obstacles to
sending a transaction that all participants can agree upon as
"compliant" are substantial.

Take a claims submitted by my hospital to Payer A:

1. Our patient accounting system applies its "HIPAA aware" edits and
produces a proprietary claim format, containing all the necessary data
content for a standard "HIPAA Compliant" transaction.
2. Our EDI translator converts that proprietary data file into an
837I.  It puts the resulting file through its HIPAA compliance maps to
ensure the formatting is "HIPAA Compliant."
3. The output file is sent to our clearinghouse, which divides the
Payer A content from all the other claims.  It combines our Payer A
claims with those of other providers and puts the resulting 837
through its "HIPAA Compliant" edits before transmitting it to....
4. Payer A's clearinghouse, which takes the inbound claims from our
clearinghouse, combines it with input from other providers and
clearinghouses, runs its compliancy maps, and passes along (in either
837 or proprietary format) to
5. Payer A, which validates the incoming data stream against its
compliancy edits (even a proprietary data file must be validated for
content, as in Step 1).

Now, if, at each step, every participant insists that its and only its
interpretation of "HIPAA Compliant" (content and/or format) is correct
and rejects all others, how many transactions do you think will go
through?  Add to this that many are further interpreting that such
minor "errors" are grounds for rejecting the entire batch of claims,
and you may begin to realize how each time someone else's "HIPAA
Compliant" transactions are mingled with yours, you are at risk of
losing connectivity with the next step in the line.

Furthermore, any subscriber to this list is aware that there continue
to be differences of interpretation among informed people -- not
counting the 95% of the industry that do not participate in these
discussions.  As people move their systems into production, unforseen
and untested situations arise.

Before anyone shouts me down with "that's what standards are for!"
arguments, let me offer this up for consideration:

There is no greater threat to the success of the conversion to
standards than a lock-up of the healthcare financial infrastructure
due to overzealous individual interpretations of those standards.

I am not advocating disposing of the standards, nor even that strict
conformance with the standards -- eventually -- is a bad idea.  Just
that the scale of this transition needs to be taken into account.

We need a pragmatic, reality-based approach to the transition.
Several groups are working on this now.  In the meantime, please
understand the danger that "my way or the highway" compliance
strategies pose to our industry.

Martin Jensen
St. John Health System
Tulsa, OK

-----Original Message-----
From: Jonathan Allen [mailto:[EMAIL PROTECTED] 
Sent: Thursday, March 27, 2003 03:19
To: WEDI SNIP Transactions Workgroup List
Cc: [EMAIL PROTECTED]
Subject: Re: Situational segments/elements and payer-specific edits


Dave Sell asked:

> I'd like to know if any receivers will reject claims that have 
> unneeded Situational segments or elements.

They certainly should.  Two principle reasons:

  a. the old chestnut of HIPAA compliance - sending unneeded
situational
     data would make a transaction non-compliant and both the sender
and
     receiver in breach of the rules (and so liable for fines if
caught)
[snip]
Jonathan
----------------------------------------------------------------------
--------
Jonathan Allen             | [EMAIL PROTECTED] | Voice:
01404-823670
Barum Computer Consultants |                             | Fax:
01404-823671
----------------------------------------------------------------------
--------


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