Medicare Outpatient Prospective Payment System: 2004 Update - Part 2 (April 2004)

April 2004 pages 6-7 Coding Update:Medicare Outpatient Prospective Payment System: 2004 Update - Part 2 This is the second part of a two-part series. Part 2 addresses reporting drugs as supplies, blood and blood products, cardioverter defibrillators, nuclear medicine, brachytherapy, stereotactic radiosurgery, and computer-aided detection for diagnostic mammography. Part 1 can be found in the March 2004 issue of CPT Assistant. Reporting Drugs as Supplies To clarify reporting confusion, the Centers for Medicare and Medicaid Services (CMS) reiterated its instruction to hospitals to report drugs that are treated as supplies (when they are an integral part of a procedure...

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Note:  The following article synopsis was NOT provided by the AMA. It was created by Find-A-Code/innoviHealth.

Article Overview

This April 2004 CPT Assistant article summarizes a set of Medicare Outpatient Prospective Payment System topics for hospital outpatient reporting. It covers broad OPPS guidance affecting drugs, blood and blood products, cardioverter defibrillators, nuclear medicine, brachytherapy, stereotactic radiosurgery, and computer-aided detection for diagnostic mammography, with attention to how CMS described code updates and payment categories at that time. The piece is useful for hospital outpatient coders, revenue cycle staff, and compliance teams tracking OPPS-related changes.

Why This Topic Matters

The article helps readers understand which hospital outpatient services were being reclassified, replaced, or otherwise addressed under OPPS in 2004. It is relevant for maintaining accurate outpatient claim reporting and for recognizing how CMS updated selected CPT and HCPCS Level II references.

Article Sections

  1. Reporting Drugs as Supplies

    Discusses hospital outpatient reporting of certain drugs and related charge placement under OPPS. It also addresses packaged versus separately payable drugs and the associated billing context.

  2. Blood and Blood Products

    Summarizes CMS’s continued OPPS treatment of blood and blood products and notes pending discussion of payment classifications. It also references future update timing.

  3. Cardioverter Defibrillators

    Covers outpatient reporting changes for selected cardioverter defibrillator services and the transition from older CPT references to newer HCPCS Level II reporting. It also notes claim handling impacts under OPPS.

  4. Nuclear Medicine

    Describes OPPS packaging and reclassification considerations for nuclear medicine procedures. It references proposed structural changes to ambulatory payment classifications.

  5. Brachytherapy

    Reviews CMS changes related to prostate brachytherapy and source reporting under OPPS. It also notes source tracking and payment structure updates.

  6. Stereotactic Radiosurgery

    Summarizes new HCPCS Level II codes for stereotactic radiosurgery and the service distinctions CMS was addressing. It also compares these additions with prior code references.

  7. Computer-Aided Detection for Diagnostic Mammography

    Explains a coding update affecting computer-aided detection reporting for diagnostic mammography. It identifies the replacement relationship described for the 2004 period.

  8. Editor’s Note

    Provides publication and reference information about a related AMA hospital outpatient coding resource. It also mentions supporting features and availability details.

What You Will Learn

  • How the article organizes selected OPPS updates for hospital outpatient reporting
  • Which service categories CMS discussed in the 2004 update
  • How the article frames changes affecting CPT and HCPCS Level II references
  • What types of outpatient payment and classification topics are covered
  • Why these OPPS updates were relevant to hospital billing and coding workflows

Who Should Read This

  • Hospital outpatient coders
  • Revenue cycle staff
  • Compliance professionals
  • Outpatient billing managers
  • Clinical documentation and coding educators

Codes Discussed

Code Ranges Discussed

  • HCPCS LEVEL II: G0338-G0340

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