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33
The Private Practice
Summer 2013/14
PROCEED WITH CARE
The problems are twofold. Firstly,
Medicare provider numbers are linked
to street addresses and currently it
is only possible to have one provider
number per doctor and per street
address, and each Medicare provider
number can only be linked to one
electronic-claiming system.
As a result, the answer to many of
the above dilemmas is that it is simply
not possible to `share' one provider
number on two different software
systems to lodge claims for services
provided at one street address. It just
can't be done ­ end of story.
And it can all go terribly wrong
if care is not taken when managing
provider numbers. I once witnessed
$40,000 of claims for one provider get
`stuck' in the crossfire when the day
after they had been transmitted, but
before they had been paid, the practice
was taken offline due to a careless
administrative error.
On another occasion, a provider
inadvertently linked his public-
hospital provider number to a new
billing system, whereby the public
hospital's revenue stream for his
private patients suddenly dried up
as it was now being diverted to the
provider's own bank account, much to
chagrin of the hospital!
You'll be pleased to know that
these types of errors can always
be rectified, but not without
administrative pain and sometimes
significant delays in cash flow. So
it's prudent to always pause before
signing any Medicare form for any
hospital or practice. Ask yourself if
the provider number to which the
form relates is currently in use and
by whom, and is it linked to claiming
software? Sometimes alternative
solutions are the only option.
In a conversation with Medicare
earlier this year, where I was
explaining some of these recurrent
issues faced by providers, I was
advised that it was now possible
to have two provider numbers for
the same doctor linked to the same
address. All I needed to do was prepare
a letter, signed by the provider, setting
out the reasons for requiring the
second provider number at the same
address, and attach it to an application
for an additional provider number.
Wonderful, I thought ­ a
watershed. Yet when I tried to assist
a client to organise this, by drafting a
carefully worded letter and submitting
it as instructed, I was advised that it
was not possible. Back to square one.
RULES & REGULATIONS
So, are provider numbers location
specific, and what exactly does the
legislation say?
Before we look at the Act and
Regulations, I just want to quickly
clarify a point of terminology that can
sometimes add to the confusion. LSPN
is an acronym for `location specific
practice number', not `provider number'.
LSPNs attach to the premises, not
the provider, and relate to diagnostic-
imaging services. Any machine used
to provide diagnostic-imaging services
must be registered under an LSPN
to enable the payment of Medicare
benefits at designated rates. LSPNs
exist on a national register, which is
accessible online.
The Medicare scheme does not
describe `location specific provider
numbers' as such, though it is true
that provider numbers are attached
to locations.
The relevant law pertaining to
provider numbers (all underlining
added) is found in Section 19 of the
Act and Regulation 13, the relevant
sections of which are copied below:
HEALTH INSURANCE ACT 1973 ­
SECT 19
Medicare benefit not payable in respect
of certain professional services
(6) A Medicare benefit is not payable in
respect of a professional service unless
the person by or on behalf of whom the
professional service was rendered, or an
employee of that person, has recorded on
the account, or on the receipt, for fees in
respect of the service or, if an assignment
has been made, or an agreement has
been entered into, in accordance with
section 20A, in relation to the Medicare
benefit in respect of the service, on the
form of the assignment or agreement,
as the case may be, such particulars as
are prescribed in relation to professional
services generally or in relation to a class
of professional services in which that
professional service is included.
The prescribed particulars
referred to in Section 19 are found in
Regulation 13 as follows:
HEALTH INSURANCE REGULATIONS
1975 ­ REG 13

Particulars to be recorded on accounts,
receipts and bulk billing agreement
(1) For the purposes of subsection 19(6)
of the Act, the following particulars are
prescribed in relation to professional
services generally:
(a) the name of the patient to whom
the service was given;
(b) the date on which the service
was given;
(c) the amount charged in respect
of the service;
(d) the total amount paid in respect
of the service;