Ch.5 Outpatient Prospective Systems Flashcards
Out patient Prospective Payment Systems (OPPS)
implemented 2000
based on fixed rates, predetermined, paid under medicare part B
Outpatient prospective system was decided based on
success on inpatient , so wanted to implement PPS on continuum level of care
OPPS services include
hospital based clinics
emergency dept visits
observations
ambulatory surgery depts
goal of OPPS
shift financial risk to hospital rather medicare, creat incentive for cost control
CMS maintains ?
inpatient-only list
which is services medicare only pay when performed in the inpatient setting
Ambulatory Payment Classifications (APC)
used to reimburse outpatient services
all outpatient services assigned to APC group
payment is prospective, fixed, annually updated
two times rule
median cost of most expensive item/service within a group cannot be 2x > median cost of least expensive within same group
procedures are identified by
Healthcare common procedure codes system
HCPCS
HCPCS level I
current procedural terminology (CPT) codes all procedures and services done by physicians, nonphys practitioners, hospital labs, outpatient facilities
consist of 5 numbers
maintain by AMA
HCPCS level II
code set used by provider and medical equipment suppliers
maintained by CMS
consist of 5 characters made up of a letter, 4 number
APC payments are determined by
HCPCS codes
CPT code identify
procedure
HCPCS II code is added when
required to report products that may have been prescribed, injected, or otherwise delivered to the pt during the service
payment rate and copayment calculated for APC applies to
each service within APC group
Packaging is when
minor ancillary services associated with procedure is combined for single payment
only used in OPPS
bundling occurs
when predetermined set services performed together during encounter result in reimbursement for all services combined into one payment
assigned by CMS to HCPCS codes to id whether payment is made separately or as packaged
status indicators
when services with status indicators are performed
associate ancillary/supportive items are packaged into payment
each APC is weighted and has a
prospective payment amount associated
if patient is assigned multiple APCs the payments are
totaled to provide reimbursement to hospital for encounter
weights are based on
average resources used to treat patients in a particular APC -avg 1.000
applied to the relative weight by CMS
a conversion factor
adjusts payments to account for geographic variations in labor cost
wage index
provides additional reimbursement to hospitals that use innovative biologicals, drugs, technology
add ons