Hernia & Surgical. Reimbursement & Coding Guide

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Hernia & Surgical Reimbursement & Coding Guide

Hernia and General Surgery Reimbursement and Coding Guide Gentrix devices facilitate the remodeling of functional, site-appropriate tissue. Compromised of ACell s proprietary MatriStem UBM (Urinary Bladder Matrix) technology, these biologically-derived devices maintain an intact epithelial basement membrane, which facilitates cellular infiltration and capillary ingrowth. Gentrix surgical devices are appropriate for a range of surgical procedures. Reimbursement and eligibility for coverage for the use of these products and associated procedures varies by and payers. Coverage policies, prior authorizations, contract terms, billing edits, and site of service influence reimbursement. It is recommended that providers verify coverage and billing policies. The following information is shared for educational purposes only to help answer common coding and reimbursement questions. While ACell believes this information to be correct, information is subject to change without notice. For assistance with reimbursement questions, contact the Reimbursement Hotline at reimbursement@acell.com or call 800-826-2926 x7. PLEASE NOTE: The payments specified in this document reflect national, unadjusted published payments from the Centers for & Medicaid Services (CMS). Actual payment rates will vary based on geographical adjustments. As such, all codes and payments provided herein are for illustrative purposes and shall not be construed as a warranty, statement, promise or guarantee that these codes are accurate or that the product will be covered in all instances, and if covered, that reimbursement in the amounts specified will be received. The decision of how to complete a reimbursement claim form, including codes and amounts to bill, is exclusively the responsibility of the QHPs and other providers. Coding requirements are subject to change at any time; please check with your local payer regularly for updates. Rx ONLY - Refer to IFU with each device for indications, contraindications, and precautions. US Toll-Free 800-826-2926 ACell, Inc. All Rights Reserved. CPT Copyright 2017 American Medical Association. All rights reserved. CPT is a registered trademark of the American Medical Association. Applicable FARS/DFARS Restrictions Apply to Government Use. Fee schedules, relative value units, conversion factors, and/or related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability for data contained or not contained herein. 1

Indications for Use Refer to Product Label for Full Instructions for Use General Surgery Gentrix Incisonal Matrix (1-layer) is intended for the reinforcement of soft tissue. General Surgery and Hernia Repair Gentrix Surgical Matrix* Thin (3-layer) are intended for implantation to reinforce soft tissue where weakness exists in patients requiring urological, gastroenterological, or plastic & reconstructive surgery. Reinforcement of soft tissue within urological, gastroenterological, and plastic & reconstructive surgery includes, but is not limited to, the following procedures: hernia and body wall repair, colon and rectal prolapse repair, tissue repair, and esophageal repair. Gentrix Surgical Matrix* (6-layer) is intended for implantation to reinforce soft tissue where weakness exists in patients requiring gastroenterological or plastic & reconstructive surgery. Reinforcement of soft tissue within gastroenterological and plastic & reconstructive surgery includes, but is not limited to, the following procedures: hernia and body wall repair, colon and rectal prolapse repair, tissue repair, and esophageal repair. Gentrix Surgical Matrix* Plus (8-layer) is intended for implantation to reinforce soft tissue where weakness exists in patients requiring gastroenterological or plastic & reconstructive surgery. Reinforcement of soft tissue within gastroenterological and plastic & reconstructive surgery includes, but is not limited to, the following procedures: hernia and body wall repair, colon and rectal prolapse repair, tissue repair, and esophageal repair. Gentrix Surgical Matrix* Thick is intended for implantation to reinforce soft tissue where weakness exists in patients requiring gastroenterological or plastic & reconstructive surgery. Reinforcement of soft tissue within gastroenterological and plastic & reconstructive surgery includes, but is not limited to, the following procedures: hernia and body wall repair, colon and rectal prolapse repair, tissue repair, and esophageal repair. *Also marketed as MatriStem Surgical Matrix. 2

Procedures: CPT Codes and s Physician and Outpatient Facility The following tables are examples of potential CPT codes that may be utilized when reporting surgical procedures. Hernia Repair Hospital Outpatient ASC CPT CODE Description Physician: National In-Facility National Avg. National Avg. 49500 49501 49505 49507 49520 49521 49525 49560 49561 49565 Repair initial inguinal hernia, age 6 months to younger than 5 years, with or without hydrocelectomy; reducible Repair initial inguinal hernia, age 6 months to younger than 5 years, with or without hydrocelectomy; incarcerated or strangulated Repair initial inguinal hernia, age 5 years or older; reducible Repair initial inguinal hernia, age 5 years or older; incarcerated or strangulated Repair recurrent inguinal hernia, any age; reducible Repair recurrent inguinal hernia, any age; incarcerated or strangulated Repair inguinal hernia, sliding, any age Repair initial incisional or ventral hernia; reducible Repair initial incisional or ventral hernia; incarcerated or strangulated Repair recurrent incisional or ventral hernia; reducible $428.76 J1 $2,910.96 A2 $1,332.80 $630.35 J1 $2,910.96 A2 $1,332.80 $541.07 J1 $2,910.96 A2 $1,332.80 $609.83 J1 $2,910.96 A2 $1,332.80 $657.35 J1 $2,910.96 A2 $1,332.80 $745.55 J1 $2,910.96 A2 $1,332.80 $595.43 J1 $2,910.96 A2 $1,332.80 $767.87 J1 $2,910.96 A2 $1,332.80 $968.03 J1 $2,910.96 A2 $1,332.80 $799.19 J1 $4,488.37 A2 $2,097.42 3

Hernia Repair (continued) Hospital Outpatient ASC CPT CODE Description Physician: National In-Facility National Avg. National Avg. 49566 +49568 * 49580 49582 49585 49587 49650 49651 49652 Repair recurrent incisional or ventral hernia; incarcerated or strangulated Implantation of mesh or other prosthesis for incisional or ventral hernia repair or mesh for closure of debridement for necrotizing soft tissue infection (List separately in addition to code for the incisional or ventral hernia repair) Repair umbilical hernia, younger than age 5 years; reducible Repair umbilical hernia, younger than age 5 years; incarcerated or strangulated Repair umbilical hernia, age 5 years or older; reducible Repair umbilical hernia, age 5 years or older; incarcerated or strangulated Laparoscopy, surgical; repair initial inguinal hernia Laparoscopy, surgical; repair recurrent inguinal hernia Laparoscopy, surgical, repair, ventral, umbilical, spigelian or epigastric hernia (includes mesh insertion, when performed); reducible $976.67 J1 $4,488.37 A2 $2,097.42 $279.36 N Packaged N1 Packaged $345.96 J1 $2,910.96 A2 $1,332.80 $502.19 J1 $2,910.96 A2 $1,332.80 $462.95 J1 $2,910.96 A2 $1,332.80 $494.63 J1 $2,910.96 A2 $1,332.80 $446.04 J1 $4,488.37 A2 $2,097.42 $578.15 J1 $4,488.37 A2 $2,097.42 $774.35 J1 $4,488.37 G2 $2,097.42 *Report the implantation of mesh or other prosthesis (CPT 49568) with only incisional or ventral hernia repair. The use of mesh or other prostheses with other types of hernia repair is not reported separately. CPT Professional Edition 4

Hiatal Hernia Repair Hospital Outpatient ASC CPT CODE Description Physician: National In-Facility National Avg. National Avg. 39540 Repair, diaphragmatic hernia (other than neonatal), traumatic; acute $903.59 C N/A N/A 39541 43280 43281 43282 +43283 43332 43333 43334 43335 43336 43337 Repair, diaphragmatic hernia (other than neonatal), traumatic; acute Repair, diaphragmatic hernia (other than neonatal), traumatic; chronic Laparoscopy, surgical, esophagogastric fundoplasty (eg, Nissen, Toupet procedures Laparoscopy, surgical, repair of paraesophageal hernia, includes fundoplasty, when performed; without implantation of mesh Laparoscopy, surgical, repair of paraesophageal hernia, includes fundoplasty, when performed; with implantation of mesh Laparoscopy, surgical, esophageal lengthening procedure (eg, Collis gastroplasty or wedge gastroplasty) (List separately in addition to code for primary procedure) Repair, paraesophageal hiatal hernia (including fundoplication), via laparotomy, except neonatal; without implantation of mesh or other prosthesis Repair, paraesophageal hiatal hernia (including fundoplication), via laparotomy, except neonatal; with implantation of mesh or other prosthesis Repair, paraesophageal hiatal hernia (including fundoplication), via thoracotomy, except neonatal; without implantation of mesh or other prosthesis Repair, paraesophageal hiatal hernia (including fundoplication), via thoracotomy, except neonatal; with implantation of mesh or other prosthesis Repair, paraesophageal hiatal hernia (including fundoplication), via thoracoabdominal incision, except neonatal; without implantation of mesh or other prosthesis Repair, paraesophageal hiatal hernia (including fundoplication), via thoracoabdominal incision, except neonatal; with implantation of mesh or other prosthesis $975.59 C N/A N/A $1,127.15 J1 $7,594.89 N/A $1,609.90 J1 $7,594.89 N/A $1,810.42 J1 $7,594.89 N/A $165.60 C N/A N/A $1,209.59 C N/A N/A $1,317.95 C N/A N/A $1,302.83 C N/A N/A $1,397.86 C N/A N/A $1,568.86 C N/A N/A $1,615.66 C N/A N/A 5

Parastomal Hernia Repair Hospital Outpatient ASC CPT CODE Description Physician: National In-Facility National Avg. National Avg. 44346 Revision of colostomy; with repair of paracolostomy hernia (separate procedure) $1,234.79 C N/A N/A General Surgery Hospital Outpatient ASC CPT CODE Description Physician: National In-Facility National Avg. National Avg. 17999 Unlisted procedure, skin, mucous membrane and subcutaneous tissue (C) Q1 $168.93 N/A If implants for soft tissue reinforcement are used in other anatomical areas, and the implant reinforcement is not inherent to the procedure performed, then it may be separately reported with unlisted code 17999, unlisted procedure, skin, mucous membrane and subcutaneous tissue. If the soft tissue reinforcement placed is an inherent part of the procedure performed, it is not appropriate to separately report unlisted code 17999. Definition of Primary Closure: Actively closing a wound immediately after completing the procedure with sutures, Steri-Strips, or another active binding mechanism. Any typical procedure required to close the surgical wound is bundled with the primary procedure. CPT Professional Edition and CPT Assistant October 2013, Volume 23, Issue 10, p 15-17 C: Not paid under outpatient; inpatient procedure only N: Items and services are packaged into payment for other services A2: Surgical procedure on ASC list in CY 2007; payment based on OPPS relative payment weight G2: Non office-based surgical procedure added in CY 2008 or later; payment based on OPPS relative payment weight J1: Paid under OPPS. Hospital Part B services paid through a Comprehensive APC; all covered Part B services on the claim are packaged with the primary "J1" service for the claim, except services with OPPS SI = F, G, H, L, and U; ambulance services; diagnostic and screening mammography; all preventive services; and certain Part B inpatient services Q1: STV-packaged Codes Paid under OPPS; Addendum B displays APC assignments when services are seperately payable. 6

HCPCS "C" Codes: Product, Hospital Outpatient "C" codes are only reported by hospitals. When devices are used in combination with associated procedures provided in the outpatient setting, hospitals report these codes for patient procedures. While the following codes are not paid separately from the procedure, reporting these codes and assignment of charges identify device-related costs. This is important for future rate-setting by. Private payers policies vary if they require the use of these "C" codes. The following table includes examples of potential HCPCS procedure codes that are available to hospitals when reporting surgical procedures. HCPCS Code Definition C1781 Mesh (implantable) C1763 Connective tissue, non-human (includes synthetic) A mesh implant or synthetic patch composed of absorbable or non-absorbable material that is used to repair hernias, support weakened or attenuated tissue, cover tissue defects, etc. Connective tissue, non-human (includes synthetic) - These tissues include a natural, acellular collagen matrix typically obtained from porcine or bovine small intestinal submucosa, or pericardium. This bio-material is intended to repair or support damaged or inadequate soft tissue. They are used to treat urinary incontinence resulting from hypermobility or Intrinsic Sphincter Deficiency (ISD), pelvic floor repair, or for implantation to reinforce soft tissues where weakness exists in the urological or musculoskeletal anatomy. N1: Packaged service/item; no separate payment made 7

Hospital Inpatient Codes and s: uses a prospective payment system to reimburse hospitals for inpatient services based on Severity Diagnosis Related Groups (MS-DRGs). Services are classified into clinically cohesive groups that exhibit similar use of hospital resources. Hospitals receive a single payment for all services provided during an inpatient admission based on the MS-DRG assigned, regardless of the actual length of stay or costs of services. Only one MS-DRG may be assigned per patient stay. The MS-DRG assignment to the categories of Complications or Comorbidities (CCs) and/or Major Complications or Comorbidities (MCCs) is influenced by the medical record documentation describing the clinical circumstances. Diagnoses and procedures are reported with ICD-10 codes. The following code list has examples of potential ICD-10 procedure codes that are available for hospitals when reporting inpatient hernia procedures. Hernia Procedures Except Inguinal and Femoral Operating Room Procedures 0DQU0ZZ Repair Omentum, Open Approach 0DQU3ZZ Repair Omentum, Percutaneous Approach 0DQU4ZZ Repair Omentum, Percutaneous Approach 0WMF0ZZ Repair Omentum, Percutaneous Endoscopic Approach 0WQF0ZZ Reattachment of Abdominal Wall, Open Approach 0WQF3ZZ Repair Abdominal Wall, Percutaneous Approach 0WQF4ZZ Repair Abdominal Wall, Percutaneous Endoscopic Approach 0WQFXZZ Repair Abdominal Wall, External Approach 0WUF07Z Supplement Abdominal Wall with Autologous Tissue Substitute, Open Approach 0WUF0JZ Supplement Abdominal Wall with Synthetic Substitute, Open Approach 0WUF0KZ Supplement Abdominal Wall with Nonautologous Tissue Substitute, Open Approach 0WUF47Z Supplement Abdominal Wall with Autologous Tissue Substitute, Percutaneous Endoscopic Approach 0WUF4JZ Supplement Abdominal Wall with Synthetic Substitute, Percutaneous Endoscopic Approach 0WUF4KZ Supplement Abdominal Wall with Nonautologous Tissue Substitute, Percutaneous Endoscopic Approach 8

MS-DRGs - Hospital Inpatients Gentrix product payment is included in the DRG payment; may be identified on the hospital claim using the HCPCS and/or revenue code; captured as a surgical supply for hospital cost accounting. MS-DRG Description Hernia Repair FY National Unadjusted 350 Inguinal and femoral hernia procedures with mcc $14,829 351 Inguinal and femoral hernia procedures with cc $8,975 352 Inguinal and femoral hernia procedures without cc/mcc $6,252 353 Hernia procedures except inguinal and femoral with mcc $18,139 354 Hernia procedures except inguinal and femoral with cc $10,388 355 Hernia procedures except inguinal and femoral without cc/mcc $7,959 Parastomal Repair 347 Anal and stomal procedures with mcc $15,847 348 Anal and stomal procedures with cc $8,511 349 Anal and stomal procedures without cc/mcc $6,116 Hiatal Repair 326 Stomach, esophageal and duodenal procedures with mcc $27,407 327 Stomach, esophageal and duodenal procedures with cc $12,753 328 Stomach, esophageal and duodenal procedures without cc/mcc $9,066 Sources CPT Professional. (). American Medical Association. CPT Assistant through 2017 CPT Changes through 2017 - National Correct Coding Policy Manual, Physician Version 23.3 Effective October 1, 2017 Hospital Outpatient Prospective System (CMS-1678-FC) Addendum B Ambulatory Surgery Center Prospective System (CMS-1678-FC) Addendum AA CMS-1676-F Revisions to Policies under the Physician Fee Schedule and Other Revisions to Part B for CY /Downloads FY Hospital Impatient Prospective Systems for Acute Care Hospitals (CMS 1677-CN), Effective October 1, 2017 Physician Fee Schedule RVU File 9

The ACell Reimbursement Support Center Monday - Friday: 9:00 am - 5:00 pm, Eastern 800-826-2926, x 7 reimbursement@acell.com ACell s Reimbursement Support Center is dedicated to providing answers to all of your reimbursement questions. It also serves as a resource for obtaining accurate billing information and reimbursement support for ACell's surgical products. ACell, Inc. 6640 Eli Whitney Drive Columbia, MD 21046 www.acell.com 800-826-2926 10 MK-0154.6 02/