tci Medicare Compliance & Reimbursement - 2004 Issue 33

Outpatient PPS: 6.6-Percent Pay Boost On Its Way For Outpatient Pay

Administration fees soar from 2003, but plummet from 2004.Hospitals are about to receive some much-needed funding enhancements. Hospital outpatient services will see a 3.3-percent payment update for calendar year 2005, plus other increases enacted in last year's Medicare Prescription Drug, Improvement and Modernization Act (MMA). The various payment boosts will bring the total reimbursement increase to 6.6 percent, the Centers for Medicare and Medicaid Services announced in an August 9 proposed rule. Under the outpatient prospective payment system, Medicare pays for services on a rate-per-service basis in which payment varies according to which ambulatory...

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