Effect of Outpatient PPS on Medicare Volume
Implemented on August 1, 2000, Medicare’s Outpatient Prospective Payment System (OPPS) classifies hospital outpatient services into approximately 800 ambulatory payment classifications (APCs) based on clinical and cost similarity. Medicare reimburses the hospital the same amount for each APC–with adjustments for local labor costs, certain hospitals, and outlier cases–regardless of the mix of services provided. How…