Changes to outlier payment for OPPS services

Outlier payments have been calculated collectively for all OPPS services that appear on a claim since the beginning of OPPS, August 1, 2000. Beginning, April 1, 2002, the OPPS Pricer will calculate outlier payments based on each individual OPPS service. Billed charges will continue to be converted to costs utilizing a single overall hospital-specific cost-to-charge ratio in calculating outlier payments. The costs attributable to all packaged items and services that appear on a claim will be allocated to all the OPPS services that appear on the claim. The amount allocated to each OPPS service is based on the percent...

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

Article Overview

This premium article covers changes to outlier payment calculation methodology for OPPS services, including how payments are determined at the service level, how claim charges are handled for cost allocation, and what changed effective April 1, 2002. It is relevant to hospital outpatient billing staff, coders, compliance teams, and reimbursement professionals who need to understand OPPS pricing and claim-processing updates.

Why This Topic Matters

Outlier payment methodology can affect outpatient reimbursement and claim preparation. Understanding the timing and scope of the policy change helps facilities align billing practices with OPPS payment processing.

What You Will Learn

  • How OPPS outlier payment calculations were updated
  • How claim charges and packaged costs are treated in outpatient claims
  • What broad policy changes took effect on April 1, 2002
  • How hospitals may structure operating room or treatment room charges on claims

Who Should Read This

  • Hospital outpatient coders
  • Outpatient billing staff
  • Reimbursement specialists
  • Compliance professionals
  • Revenue cycle teams

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