What term describes the reimbursement method for ambulatory surgical procedures for Medicare patients?

The reimbursement method for ambulatory surgical procedures for Medicare patients is known as APCs, or Ambulatory Payment Classifications. This system is specifically designed for outpatient services provided by hospitals. Under the APCs system, Medicare pays a fixed fee for a specific set of services based on the classification into which a procedure falls, rather than paying for each service individually.

APCs simplify the billing process by providing a single payment that encompasses multiple services, such as a surgical procedure and any related care that occurs the same day. This approach incentivizes efficiency, as healthcare providers are encouraged to streamline their processes to stay within the fixed reimbursement rate while still maintaining quality care.

In contrast, other methods such as Diagnosis-Related Groups (DRGs) apply to inpatient hospital stays, fee-for-service models bill separately for each service rendered, and capitation provides a fixed rate per patient regardless of the number of services provided. These options do not align with the specific reimbursement framework set for outpatient surgical procedures under Medicare.