October 15, 2006
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New technologies benefit business, patients

Y. Ralph Chu, MD [photo]
Y. Ralph Chu

With the recent ruling from the Centers for Medicare and Medicaid Services on presbyopic IOLs, traditional cataract surgeons are challenged to transition to refractive cataract surgery. In turn, traditional refractive surgeons will likely want to incorporate lens-based technology into practice. To develop a strong lens-based refractive business, surgeons must address patient needs.

Patient expectations for almost any type of eye surgery have been shaped by dramatic improvements in outcomes over the past decade. Patients seek improved quality of life, full range of vision and decreased dependence on glasses.

Implications of the aging population

The aging population in the United States will likely give rise to an increased demand for all eye care services. By 2010, cataract surgery procedures may increase by 25%.

During the same time, however, ophthalmology will see increased practice expenses because of inflation, business costs, pay for performance, conversion to electronic medical recordkeeping, and decreased reimbursement for services.

Developing strong clinical and business practices for the increasing demand for eye care services is important and must accommodate aging baby boomers who may have cataracts and want to reduce dependence on glasses.

Financing options

Multifocal IOLs are often unplanned expenses. Considering most retirees are on fixed incomes, payment plans offered by financing firms, such as CareCredit (below), may increase the conversion rate to multifocal IOLs. Patients want to select an IOL based on value, not cost. In addition, patients who finance are likely to mention financing when they refer others.

No interest plan

  • 3, 6, 12, 18, or 24 months
  • No interest, if balance is paid off within time frame
  • No upfront costs, annual fees, or prepayment penalties

Extended payment plan

  • 24, 36, 48, or 60 months
  • 9.9% patient interest rate
  • No upfront costs, annual fees, or prepayment penalties

Source: CareCredit, Inc.; 800-859-9975; www.carecredit.com

Increase revenue

While generating revenue is not the primary focus of an eye care practitioner, surgeons can strengthen their businesses by offering improved or new technologies. Patients with cataracts who elect to have a presbyopic IOL implanted can affect the revenue of a practice. The average cost of the additional testing and procedures necessary to optimize patient outcomes with these IOLs is approximately $1,500 per eye.

If we assume the average surgeon performs approximately 350 cataract procedures per year and that the average surgeon reimbursement between Medicare and private insurance companies is approximately $700 per eye, then the yearly revenue of a practice may increase by $154,000 if only 20% of patients elect to receive a presbyopic IOL such as the ReZoom multifocal IOL (Advanced Medical Optics). If 30% of patients elect to receive a presbyopic IOL, then yearly revenue may increase by $210,000.

Maximize conversion

The most important principle to remember while integrating presbyopic IOLs into a practice is to provide as much education as possible to patients so that they can make their own decisions about whether a presbyopic IOL is right for their lifestyle. Basic education should be presented before a patient sees the surgeon so that the surgeon can focus on the clinical examination. The clinic’s staff is critical in this educational process.

When a patient schedules an appointment for a cataract evaluation, a staff member can inform the patient of the new IOL options available to eliminate or reduce the need for reading glasses. Before the appointment, a staff member can mail the patient a brochure, which should review facts about cataracts and presbyopia, inform patients about available options, and guide patients through new technology IOLs. In addition, a practice Web site may be a useful educational tool for patients.

When the patient arrives for an examination, a technician presents the patient with a lifestyle questionnaire that will provide critical information for beginning the new technology IOL discussion. The technician should then review the lifestyle questionnaire responses and provide a brief introduction to cataract surgery, and presbyopia-correcting and wavefront-designed IOLs.

The surgeon interaction with the patient should be straightforward, focusing on educating the patient further about the advantages and disadvantages of presbyopia-correcting IOLs and how these relate directly to the patient’s specific lifestyle needs.

The surgeon should explain each step of the examination and let the patient know the findings. During the eye examination, the surgeon can continue to discuss the patient’s lifestyle needs, making the experience a dialogue. The surgeon can then make specific recommendations for treatment and ask if the patient is interested in more information.

A patient seeking more information can speak to a counselor who could also show a short video on the recommended IOL, explain expected outcomes including advantages and disadvantages, and answer any further questions for the patient. Thorough education and assistance help facilitate good patient decisions. If the patient would like to undergo the procedure, then Medicare and out-of-pocket expenses should be explained, payment questions answered, and financing options discussed, if needed. All patients should be given ample time to think through all of the information given to them so they feel comfortable with their decision regardless of the type of IOL chosen.

Avoid promoting as premium

As a final note, I recommend that surgeons avoid promoting presbyopic IOLs as the premium IOL. Instead, surgeons should inform patients that many options are available and that the potential benefits of each lens depend on each individual patient’s specific lifestyle needs and demands. Surgeons should educate patients so that the patients are able to choose the best IOL technology for their lifestyle.

Y. Ralph Chu, MD, is adjunct assistant professor of ophthalmology at the University of Minnesota in Minneapolis and founder and medical director of Chu Vision Institute in Edina, Minn.

Navigating the CMS ruling

In 2005, the Centers for Medicare and Medicaid Services (CMS) ruled that surgeons, hospitals and ambulatory surgery centers (ASCs) may bill Medicare patients for non-covered items and services associated with presbyopia-correcting IOLs for cataract surgery.

Partial list of noncovered items and services:

  • Surgical correction of pre-existing astigmatism by refractive keratoplasty
  • Diagnostic tests required for refractive surgery such as refraction, corneal topography, corneal pachymetry or aberrometry
  • Contact lens trial fitting to assess refractive error in patients who had prior refractive surgery
  • Presbyopia-correcting function of the IOL
  • Surgical enhancement following the initial cataract surgery

The CMS ruling states:

  • “…the facility and physician may take into account any additional work and resources required for insertion, fitting, vision acuity testing, and monitoring of the presbyopia-correcting IOL that exceeds the work and resources attributable to insertion of a conventional IOL”
  • “…the beneficiary requests this service”
  • “The physician and the facility may not require the beneficiary to request a presbyopia-correcting IOL as a condition of performing a cataract extraction with IOL insertion”

New technology IOLs

In 2006, the CMS designated the Tecnis IOL (Advanced Medical Optics) and AcrySof IQ IOL (Alcon) new technology IOLs (NTIOLs). With this designation, Medicare will reimburse an ASC an additional $50. Use Q1003 on claims for reimbursement.

Source: Corcoran Consulting Group; 800-399-6565; www.corcoranccg.com.