JANUARY 15, 2007
VOLUME 4 NO. 1

POLICY & POLITICS

Reviled audit committee abolished at last

Ontario's new health act overhauls billing audits, does away with assumption of guilt


Christmas came early for Ontario's embattled physicians with the December 12 introduction of the omnibus Bill 171, or Health System Improvement Act, at Queen's Park. Physicians will rejoice in the announcement of a new provincial public health agency, better access to information for patients and improved regulation of alternative therapies. But mostly they'll love the bill's formal abolition of the despised Medical Review Committee (MRC). The Act proposes a new, more physician-friendly audit system based substantially on the 2005 Cory Report, which condemned the MRC as tantamount to a physician witch hunt.

DRACONIAN MEASURE
The Kafkaesque MRC was suspended back in September 2004, and during this two-year break from auditing, physician billing tabs rose by about $700 million. Public and media pressure — including investigative reports from the Toronto Star, the Hamilton Spectator and the Kitchener Record — had been mounting to reintroduce some sort of oversight.

Retired Supreme Court of Canada Justice Peter Cory, author of the report, never imagined the government would leave things in limbo for such a long time. "There's a need for an auditing system in order to prevent the abuse of public money — because that's what it is," he said from his Toronto office. "But the vast majority of doctors are honest and straightforward. And if the system of billing and the billing items were clearer I'm sure there wouldn't be that same problem."

Justice Cory's report found that Ontario's old auditing system was not only strict, but it was substantially different from that of other provinces. The paperwork demands were so persnickety and officious that they actually had a negative impact on patient care. What's more, the audits were so disruptive and loathed by physicians that they likely worsened the exodus of doctors from the trillium province.

THE BAD OLD DAYS
The MRC grew to be more aggressive in its scrutiny of physician billing starting in the late 1990s and in the early part of this decade it was clawing back about $5 million annually from Ontario's doctors. The system's de facto presumption of guilt meant that honest data entry mistakes were treated as fraud. The MRC's practices reached the flashpoint of public outrage with the harrying of Welland pediatrician Dr Anthony Hsu. Dr Hsu took his own life in 2003 after his name was publicly dragged through the mud and his retirement savings vacuumed out in order to pay back claims that didn't comply with OHIP's opaque coding rules. The demise of this hard-working, widely admired doctor showed that a system that ostensibly was there to protect taxpayers against MD fraud, more closely resembled a backdoor tax on physicians who had the nerve to spend more time with patients than with their chartered accountant.

Dalton McGuinty's Liberals vowed to fix the medical audit system prior to getting elected. On 24 June 2004 the Ontario legislature unanimously voted to suspend the MRC until a new system was readied. And the Liberals made good on their promise by appointing retired judge and present York University Chancellor Peter Cory to head a commission charged with creating a better audit regime.

The former puisne judge got an earful from Ontario's doctors. "There were public hearings and a great many doctors came and explained their problems with the audit system and there were organizations as well, like the OMA and the College of Physicians and Surgeons, and the various specialist organizations that came to put forward their position with regard to what was wrong with the system from their point of view," recalls Mr Cory. "And there were very good submissions and recommendations."

The feeling was mutual: the Cory Report was well-received by Ontario doctors, including the OMA and The Coalition of Family Physicians (COFP). The latter group's president, Dr Douglas Mark, was one of the MRC's most outspoken critics and a passionate advocate of the late Dr Hsu. He dubbed the Cory Report "a civil rights proposal for Ontario doctors" and stated he was "...delighted that his Honour appears to have adopted all major recommendations requested by the COFP."

WHAT MADE THE CUT
Now that Mr Cory's recommendations have made their way into legislation the most immediate question is how much of the report made it into the bill?

Plenty, says Ontario Ministry of Health and Wellness spokesman A G Klei.

"Of the 118 recommendations in the report, if the proposed legislation is enacted, the vast majority will be implemented in whole or in part," he says. "Of the recommendations not being implemented, those relating to an Audit Board Inspection process have been replaced with a records review by the Ministry. The Ministry and the OMA have worked together in developing the revised process."

The OMA released a lengthy commentary on the heels of Bill 171. It finds the proposed changes to the audit system by-and-large positive, but did have some problems in a few areas: the rules on how the schedule of benefits is interpreted; how doctors are compensated when payment is wrongly withheld; and some unclear wording in the section on withholding payments.

The commentary lauded Bill 171's abolition of doctor's office inspectors, its call for advance notice before audits and above all the creation of a new Physician Audit Board, which will be made up of 30 doctors from diverse branches of medicine plus 10 non-physicians.

OMA President Dr David Bach singled out George Smitherman in his statement to the media on 12 December. "The Minister deserves a tremendous amount of credit and thanks for tackling this difficult issue and for working with the OMA to find a resolution," he said. "The system that is proposed today is the result of months of work between the OMA and the Ministry."

COULD HISTORY REPEAT?
When asked if the new law was designed to prevent another tragic case like Dr Hsu's, Mr Klei declined to comment directly but hinted that clarifying the coding process will help and that auditing will be more of a last resort.

"Mr Cory was asked to develop best practices for the audit process, and his report did not address specific cases," he said. "This system, if implemented, would focus on educating and assisting physicians to meet the OHIP billing requirements. In the event that the educational interventions are not successful, the physician may go to the new independent Physician Review Board which will operate under the Statutory Powers Procedure Act (SPPA)." The SPPA ensures fairness in non-court tribunals like rental boards and social assistance boards.

Mr Cory agrees that many audits could be averted with better coding. "A lot might go into education for the doctors on what's needed to understand and proceed with the billing process," he suggested.

But will Ontario under Bill 171 be a kinder gentler place to practise medicine? Mr Klei thinks so. "These amendments, if implemented, will focus on educating physicians regarding the billing requirements of OHIP; provide a more transparent system for auditing physician payments and make use of a new independent board — all of which are in support of restoring physician confidence in the physician audit system," he says.

 

 

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