OPPS Update: Expect to See More Bundling with Overall Lower Payments in 2016

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

Article Overview

This article reviews the 2016 Medicare Hospital Outpatient Prospective Payment System final rule and its impact on outpatient hospital payment updates, clinic and emergency department visit reporting, observation packaging, critical care, and selected care management services. It is aimed at hospital outpatient departments, emergency departments, clinics, and coding/billing professionals who need a high-level understanding of the year-over-year payment and policy changes. The discussion focuses on general OPPS updates, APC changes, status indicators, and the types of services affected by expanded bundling and revised payment structures.

Why This Topic Matters

The article helps readers understand how the 2016 OPPS final rule may change outpatient reimbursement, packaging, and reporting patterns for common hospital services. This is important for organizations that code and bill clinic, ED, observation, critical care, and related outpatient encounters under Medicare.

Article Sections

  1. OPPS Final Rule Overview and Payment Update

    Introduces the 2016 OPPS final rule, effective date, and the overall direction of Medicare outpatient payment changes. Summarizes the broad payment update context for hospitals and outpatient departments.

  2. Outpatient Visit Level Guidelines

    Reviews continuing clinic and emergency department visit coding policies for 2016. Covers the general categories of facility visit reporting discussed in the article.

  3. Renumbered Clinic Visits APCs

    Describes changes to the clinic visit ambulatory payment classification structure and the related payment update. Also notes the continuation of the current facility clinic visit framework.

  4. Critical Care APC Payment Increases, but Not with Trauma Activation

    Summarizes the article’s discussion of critical care payment updates and trauma activation payment changes. Includes related packaging considerations for ancillary services on the same date of service.

  5. New Status Indicator for Observation APC

    Explains the observation comprehensive APC update, including the new APC structure and status indicator discussion. Covers the broader observation claim categories and packaging approach described in the article.

  6. Two-Midnight Rule Will Continue to Define Observation vs. Inpatient Stays

    Reviews the article’s discussion of the two-midnight policy and related exceptions. Also covers the compliance and review context described for inpatient versus observation stays.

  7. Chronic Care Management and Advanced Care Planning Pay

    Summarizes the article’s discussion of outpatient payment treatment for chronic care management and advance care planning services. Notes the general conditions and packaging context addressed in the article.

What You Will Learn

  • How the 2016 OPPS final rule changed the overall outpatient payment environment
  • Which outpatient visit categories and facility services are discussed in the update
  • How observation services and related APC packaging were addressed for 2016
  • What the article says about critical care, trauma activation, and packaging of ancillary services
  • How the two-midnight policy is discussed in relation to observation and inpatient stays
  • How chronic care management and advance care planning are treated under OPPS in the article

Who Should Read This

  • Hospital outpatient coders
  • Emergency department billing staff
  • Clinic billing staff
  • Revenue cycle professionals
  • Compliance teams
  • Medicare reimbursement analysts

Codes Discussed

Code Ranges Discussed


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