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S. Rept. 114-109 1 (2015-07-30)

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                                                         Calendar No. 188
                   114TH CONGRESS                                     REPORT
                      1st Session             SENATE                  114-109




                   A BILL TO PROVIDE FOR  THE EXTENSION  OF THE  ENFORCEMENT   IN-
                   STRUCTION ON SUPERVISION REQUIREMENTS FOR OUTPATIENT
                   THERAPEUTIC   SERVICES IN CRITICAL ACCESS AND SMALL RURAL HOS-
                   PITALS  THROUGH  2015


                                    JULY 30, 2015.-Ordered to be printed


                             Mr. HATCH,  from the Committee on Finance,
                                       submitted the following


                                          REPORT

                                          [To accompany S. 1461]
                     The Committee  on Finance, to which  was referred the bill (S.
                   1461) to provide for the extension of the enforcement instruction on
                   supervision requirements for outpatient therapeutic services in
                   critical access and small rural hospitals through 2015, having con-
                   sidered the same, reports favorably thereon with an amendment
                   and recommends  that the bill, as amended, do pass.
                                 I. LEGISLATIVE BACKGROUND
                     The Committee  on Finance, to which was referred (S. 1461), to
                   provide for the extension of the enforcement instruction on super-
                   vision requirements for outpatient therapeutic services in critical
                   access and small rural hospitals through 2015, reports favorably
                   thereon with an amendment  and recommends  the bill, as amended,
                   do pass.
                   Background and need for legislative action
                     In the calendar year (CY) 2009 Medicare hospital outpatient pro-
                   spective payment system (OPPS) final rule, the Centers for Medi-
                   care and Medicaid Services (CMS)  restated and clarified a 2001
                   policy that required direct physician supervision for outpatient
                   therapeutic services furnished in a hospital outpatient department
                   unless another supervision level is specified for the service. The
                   final rule discussed that direct supervision means a physician or a
                   non-physician practitioner must be immediately available to fur-
                   nish assistance and direction throughout a procedure in the hos-
                   pital outpatient department. CAHs and small rural hospitals raised
                   concerns that the policy increased confusion about the types of
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