Nevada Administrative Code Chapter 428 - Hospital Care for Indigent Persons

Overview of NAC Chapter 428

Chapter 428 governs the provision of hospital care to indigent persons in Nevada, with the purpose of:

Ensuring that low-income individuals have access to necessary medical services.

Setting eligibility criteria for indigent care.

Establishing hospital responsibilities for billing, reporting, and treatment.

Defining penalties or corrective measures for noncompliance.

Hospitals that receive public funds or operate within certain jurisdictions must follow these rules.

Case 1: Eligibility Misclassification

Scenario

A 45-year-old patient applies for indigent care after losing their job. The hospital staff initially denies coverage, stating the patient earns too much, without reviewing detailed income documentation.

NAC 428 Requirement

Hospitals must verify income and financial resources according to NAC guidelines.

Denial cannot be arbitrary and must be based on actual documented eligibility.

What Happens

The patient appeals the decision.

The hospital reviews tax returns, bank statements, and household size.

Result

The patient qualifies for partial coverage.

Hospital provides necessary treatment and adjusts billing.

Hospital staff receive retraining on proper eligibility assessment.

Key Principle

Eligibility must be fair, documented, and verifiable; hospitals cannot deny care without proper review.

Case 2: Emergency Treatment Before Verification

Scenario

A homeless individual arrives with severe chest pain. Staff begin treatment but have no documentation of indigent status.

NAC 428 Requirement

Hospitals cannot delay emergency care pending eligibility verification.

Initial stabilization must be provided immediately.

What Happens

The patient receives life-saving care.

After stabilization, the hospital begins indigent care verification.

Result

Treatment is covered under indigent care provisions.

Hospital documents compliance with emergency treatment rules.

Key Principle

NAC 428 prioritizes immediate patient care over paperwork in emergencies.

Case 3: Improper Billing Practices

Scenario

A hospital bills an indigent patient for 50% of a covered procedure, claiming administrative costs, even though NAC 428 caps patient responsibility at a lower percentage.

NAC 428 Requirement

Hospitals must adhere to the cost-sharing and billing limits defined in NAC 428.

Overcharging or ignoring the maximum allowed patient contribution is prohibited.

What Happens

Patient files a complaint with the Nevada Division of Health and Human Services.

Audit confirms the billing error.

Result

Hospital must refund the overcharged amount.

Administrative penalty may be applied.

Hospital updates billing procedures to comply with NAC rules.

Key Principle

Hospitals are legally responsible for accurate billing under indigent care regulations.

Case 4: Denial of Specialty Services

Scenario

An indigent patient requires a specialist consultation, but the hospital refuses because it claims the service is “non-essential.”

NAC 428 Requirement

Hospitals must provide medically necessary care, including specialty services, if the condition is serious or urgent.

Refusal is allowed only if care is not medically necessary or unavailable locally.

What Happens

Patient appeals through state channels.

A medical review board determines the consultation is essential for proper treatment.

Result

Hospital arranges specialist care under indigent coverage.

Policy revised to ensure specialty care requests are properly evaluated.

Key Principle

NAC 428 ensures all necessary medical services are available to eligible patients.

Case 5: Failure to Maintain Records

Scenario

A hospital provides indigent care but fails to maintain documentation of patient eligibility, treatment, and costs.

NAC 428 Requirement

Hospitals must keep detailed records of all indigent care provided for audits and compliance purposes.

What Happens

During a routine audit, the hospital cannot verify several claims for reimbursement or compliance.

Result

Hospital is fined and ordered to implement proper record-keeping systems.

Staff training is required to prevent future violations.

Key Principle

Accurate record-keeping is essential for transparency, auditing, and accountability.

Case 6: Delayed Approval Leading to Complications

Scenario

A patient applies for indigent care for urgent surgery. Hospital delays approval for two weeks while waiting for paperwork, resulting in worsening of the patient’s condition.

NAC 428 Requirement

Hospitals must process applications promptly.

Delay cannot endanger the patient’s health.

What Happens

The state investigates the delay.

Hospital acknowledges procedural flaws.

Result

Patient receives full coverage for surgery.

Hospital implements a fast-track process for urgent cases.

Administrative penalties applied for failure to follow timely procedures.

Key Principle

NAC 428 emphasizes timeliness in processing applications, especially when delays threaten health.

Case 7: Misuse of Funds Allocated for Indigent Care

Scenario

A hospital receives state funds to cover indigent care but uses them to renovate administrative offices.

NAC 428 Requirement

Funds must be used exclusively for providing care to eligible patients.

What Happens

Audit reveals misuse of funds.

State imposes corrective action and requires repayment.

Result

Hospital returns misallocated funds.

Staff receive ethics and compliance training.

Future funding contingent on proper financial management.

Key Principle

NAC 428 ensures that public resources are used appropriately to serve vulnerable populations.

Summary of Core Themes in NAC Chapter 428 Cases

Eligibility verification – fair, documented, non-discriminatory.

Immediate care in emergencies – cannot delay for paperwork.

Accurate billing and cost-sharing – overcharging is prohibited.

Provision of medically necessary services – specialty care included.

Record-keeping and compliance – critical for audits and accountability.

Timely application processing – delays should not harm patients.

Proper use of allocated funds – financial accountability is mandatory.

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