2.3% increase in overall hospital outpatient PPS rates for 2002

Article Overview

This article reviews a 2002 CMS final rule affecting hospital outpatient prospective payment system rates and Ambulatory Payment Classifications (APCs). It explains the broad payment update, the handling of pass-through items and high-cost medical devices, and the addition of separate hospital observation payment for selected conditions. The piece is relevant to hospital coders, outpatient billing staff, and reimbursement professionals who need to understand how the annual APC rule affects Medicare outpatient facility payment policy and documentation requirements.