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Health Law Highlights

“Incident To” Billing Promotes Productivity, But Presents Many Potential Pitfalls

Summary of article from Burr & Forman, by Catherine Kirkland:

“Incident to” billing allows physician practices to bill Medicare for non-physician practitioners (NPPs) under a supervising physician’s provider number at the full physician rate, enhancing productivity and reducing appointment wait times. However, this arrangement carries significant compliance risks, requiring specific conditions such as the physician initiating treatment, ongoing management, and direct supervision. Violations can result in substantial financial penalties, as seen in recent cases where practices paid hefty settlements for non-compliance. Intentional breaches may even lead to federal criminal charges, highlighting the need for strict adherence to regulations. Practices must also recognize that “incident to” billing requirements differ among payors, necessitating tailored billing policies for each. Legal guidance should be sought if inadvertent violations occur, with self-reporting to the Office of Inspector General (OIG) as appropriate. Understanding and complying with both Medicare and individual payor guidelines is crucial for lawful “incident to” billing.