HCP Hospital Supply Chain Conference - Spring 2019

Learn more here.

Miami, FL | April 29 - May 1

To inquire about setting up a meeting, please complete a form here.

HCCA Compliance Institute 2019

Come visit us at HCCA's Compliance Institute 2019!

Boston, MA | Expo: April 7-9

Find us at our Booth #222. Come say hello and learn more about our product WarrantyTracker that reduces risk for a hospital's explants, ensuring warranty claims are successfully pursued, tracked, and reconciled in accordance with CMS guidelines.

To inquire about setting up a meeting, please complete a form here. We look forward to seeing you.

AORN Global Surgical Conference and Expo 2019

Come visit us at AORN Global Surgical Conference and Expo 2019!

Nashville, TN | Expo: April 7-9

Find us at our Booth #2039. Come say hello and learn more about how our end-to-end implant management solutions improve patient safety, ensure compliance, and reduce costs in the OR. Plus, enter our raffle for a chance to win an Apple Watch.

To inquire about setting up a meeting, please complete a form here.

Hospitals Still Fall Short in Pursuing Claims for Recalled CRM Devices

Response to OIG Report

January 8, 2019

Hospitals Still Fall Short in Pursuing Claims for Recalled CRM Devices


Paul Cicciarelli, Product Manager, Champion Healthcare Technologies

In 2018, the Office of Inspector General (OIG) published a report citing that 210 hospitals did not always comply with Medicare requirements for reporting certain cardiac device manufacturer credits.

Specifically, all 296 payments reviewed by the OIG for recalled cardiac medical devices did not follow Medicare requirements for reporting manufacturer credits. Medicare contractors incorrectly paid hospitals $7.7 million for cardiac device replacement claims rather than the $3.3 million they should have been paid, resulting in potential overpayments of $4.4 million. The OIG contributes these overpayments to Medicare controls not being sufficient to ensure that hospitals properly reported manufacturer credits for cardiac devices.

Though an eye-opening report, this is not the first time the OIG has highlighted its concern about medical device credits. OIG estimated that from 2005 to 2014, services related to the replacement of recalled and prematurely-failed medical devices cost Medicare $1.5 billion. Given the widespread nature and heightened attention to noncompliance, hospitals need to take notice or otherwise risk facing substantial overpayment fines in an audit.

Hospitals’ path towards compliance, however, does not come without challenges. Below are some challenges that my colleagues and I at Champion have observed for hospitals to properly identify, track, and report credits to Medicare:

  1.     The process for identifying, tracking, and reporting medical device credits on Medicare claims requires many different hospital departments and staff disciplines (materials management, accounts payable, clinical departments, etc.). For example, separate hospital personnel are responsible for contacting the manufacturer, tracking the availability of the credit, and determining whether an adjustment claim needs to be submitted to pass along the credit to Medicare. Staff need to ensure very close coordination and open communication to be successful.
  2.     It is the hospital, not the manufacturer, that is responsible for initiating the warranty credit process. However, complex documentation make this difficult for staff. For instance, hospitals are faced with many types of submission forms, as each manufacturer has a distinct device return authorization process that requires details in varying formats. Furthermore, hospital staff submitting Medicare claims must be aware of credits that are at least 50 percent of the price the facility paid for the replacement device, and must report the credit as a deduction on a submitted claim.
  3.     Another challenge is that hospitals often do not know whether they will receive a credit or how much that credit will be at the time of billing for the device replacement procedure. In these ambiguous situations, the hospital has two options. First, the hospital may hold the claim until a determination is made about the credit and then submit the claim with the appropriate condition code and value code or modifier if it receives a reportable credit. Or, the hospital may submit the claim immediately without a condition code and value code or modifier, and if the hospital receives a reportable credit later, submit an adjustment claim with the appropriate condition code and value code or modifier. Either option may work, but they both underscore how onerous pursing credits can be, particularly if hospitals do not have policies and procedures in place.

Ensuring compliance and reducing audit risk for hospitals is paramount, but it’s clear from these examples that challenges and confusion around pursuing credits still exist.

I encourage you to read more about the complexities of medical device warranty credits in Champion’s 3-part white paper series:

  • Part 1: Awareness and Understanding (download here). Discover the challenges of the process, the cost of noncompliance, and critical components to reduce audit risk.
  • Part 2: Policy and Oversight (download here). Read about the importance of developing a device warranty policy, as well as tips and pitfalls for overseeing the claims process.
  • Part 3: Standard Processes and Procedures (coming soon). Leveraging knowledge from Parts 1 and 2, understand the processes and procedures needed to comply with device warranty claims requirements.

Champion Gives Back to Celebrate Customer Service Week 2018

Champion Healthcare Technologies joined with customer service professionals in all 50 states and over 60 countries in celebrating Customer Service Week, October 1st-5th!

The week provided an opportunity for us to focus on the importance of customer service to our organization and to the individuals we serve each day. Equally important, it was a time to recommit to our customer support mission - Deliver world class customer support and training with integrity and simplicity that will meet and exceed our customers' expectations

To celebrate the end of the week we were lucky enough to join Feed My Starving Children, a non-profit organization, that let us volunteer to pack scientifically formulated meals for malnourished children. Feed My Starving Children distributes to over 200 partners in 50 countries and Champion's team completed packing 12,960 meals that will feed 35 children for one year!

A huge thank you to every department who is committed to making our customer's feel appreciated and heard day in and day out. It was a wonderful week and our staff was exemplary of this years theme, "Excellence Happens Here"!

Champion Healthcare Technologies CEO Peter Casady to Present at the Association for Healthcare Resource and Materials Management 2018 Conference

AHRMM18 Presentation to Discuss Warranty Credit Requirements and Best Practices to Mitigate Risk

CHICAGO - August 7, 2018 - Champion Healthcare Technologies, an implant tracking and inventory management company, announced today that Peter Casady, founder and chief executive officer, will present alongside Tyler Fredericksen, category analyst, Centura Health, at AHRMM18. The Learning Lab session entitled, "Navigating OIG Audits for Device Overpayments: Best Practices" will be held on Tuesday, August 14th at 1:00 p.m. CT.

"Errors in device warranty credit tracking and reporting can leave hospitals at risk of an OIG audit and liable for significant penalties," said Peter Casady, CEO, Champion Healthcare Technologies. "It can be challenging because the process is typically very fragmented and lacks transparency. However, with the right procedures and systems, we believe hospitals can significantly streamline workflow and increase visibility throughout the process to reduce risk."

The session will include a discussion about Centers for Medicare and Medicaid Services (CMS) requirements, Office of Inspector General (OIG) audits and the resulting financial penalties around incorrectly reporting medical device warranty credits. The presenters will describe best practices for internal processes and procedures to effectively manage claims to reduce risk and ensure compliance. In addition, Fredericksen will provide an overview of Centura Health's approach to streamline the workflow and create transparency throughout the process to enable stakeholders across the organization to be more efficient.

ARHMM18 is scheduled for August 12-15th in Chicago, IL. In addition to the presentation, Champion Healthcare Technologies will also be exhibiting at Booth #223. For more information, visit www.championht.com/events/ahrmm18-conference-exhibition.

About Champion Healthcare Technologies
Champion Healthcare Technologies provides comprehensive implant tracking and inventory management solutions. Its broad portfolio helps hospitals and health systems effectively track and manage tissue and implants throughout the enterprise to ensure compliance, optimize efficiency and improve patient safety and quality. Leveraging a deep integration with vendors, government entities and other systems, Champion empowers healthcare organizations with greater transparency and visibility. For more information, visit us at www.ChampionHT.com or follow us on LinkedIn and Twitter.

2018 Healthcare Coalition Conference

September 18-20, 2018

Owensboro, KY

OR Manager Conference 2108

September 17-19, 2018

Nashville, TN

AHIA 37th Annual Conference

August 26-29, 2018

San Diego, CA


Track G7: Navigating OIG Audits for Device Overpayments: Best Practices

Tuesday, August 28th, 2018

2:10 – 3:00pm

Presented by: Peter Casady, President, CEO, Champion Healthcare Technologies

Recently, the OIG has focused its attention on hospitals management of the warranty claims process. The audits are finding that many hospitals do not have adequate systems and processes in place to meet compliance requirements in this area, resulting in over payments by Medicare.

Peter Casady will discuss best practices and tools to improve the warranty credit claims processes to ensure compliance and increase efficiency.