Managing up to maximize Medicare reimbursement for outpatient care

Abstract

An example of managing up through participation in a multidisciplinary team tasked with maximizing reimbursement under the Medicare ambulatory patient classification (APC) system is described. Medicare's new system of payment for hospital outpatient services replaces the cost-based reimbursement model of the past with a technical payment based on the outpatient evaluation and management level. Individual institutions are responsible for developing criteria for defining technical visit levels. Managers at the New England Medical Center formed a team to develop these criteria. The team outlined components of the patient visit that qualified as technical costs, such as the use of space at a facility, medical and surgical supplies, and nonphysician professional services. Team members then contacted each of the center's clinics to identify specific services that met these criteria. After formulating the technical visit level criteria, the team determined who would assign the technical visit level, wrote policies and procedures, and trained staff. The APC team also assessed billing procedures, focusing particularly on the accuracy of the charge master and the use of proper codes and billing units for pass-through drugs. The team continues to monitor its results by reviewing payments received from Medicare and auditing high-risk areas. The APC team used the principles of managing up to maximize Medicare reimbursement for outpatient visits.