UHI Ch 9: CMS Reimbursement Methodologies – Flashcards

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DRG system adapted for use by third-party payers to reimburse hospitals for inpatient care provided to non-Medicare beneficiaries (e.g., BlueCross BlueShield, commercial health plans, TRICARE); DRG assignment is based on intensity of resources.
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All-Patient diagnosis-related group (AP-DRG)
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adopted by Medicare in 2008 to reimburse hospitals for inpatient care provided to Medicare beneficiaries; expanded original DRG system (based on intensity of resources) to add two subclasses to each DRG that adjusts Medicare inpatient hospital reimbursement rates for severity of illness (SOI) (extent of physiological decompensation or organ system loss of function) and risk of mortality (ROM) (likelihood of dying); each subclass, in turn, is subdivided into four areas: (1) minor, (2) moderate, (3) major, and (4) extreme.
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All-Patient Refined diagnosis-related group (APR-DRG)
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maximum fee a provider may charge.
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allowable charge
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payment system for ambulance services provided to Medicare beneficiaries. the balanced budget act of 1997 2002 was phased in over 5 years replacing a retrospedtive reasonable cost payment system.
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ambulance fee schedule
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for OPPS, all services are paid according to ________ which group services according to similar clinical characteristics and in terms of resources required. Hospitals can be paid for more than one APC
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ambulatory payment classificaton
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state-licensed, Medicare-certified supplier (not provider) of surgical health care services that must accept assignment on Medicare claims.
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ambulatory surgical center (ASC)
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predetermined amount for which ASC services are reimbursed, at 80 percent after adjustment for regional wage variations.
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ambulatory surgical center payment rate
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billing beneficiaries for amounts not reimbursed by payers (not including copayments and coinsurance amounts); this practice is prohibited by Medicare regulations.
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balance billing
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the types and categories of patients treated by a health care facility or provider.
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case mix
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document that contains a computer-generated list of procedures, services, and supplies with charges for each; chargemaster data are entered in the facility's patient accounting system, and charges are automatically posted to the patient's bill (UB-04).
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charge description master (CDM) also called chargemaster
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document that contains a computer-generated list of procedures, services, and supplies with charges for each; chargemaster data are entered in the facility's patient accounting system, and charges are automatically posted to the patient's bill (UB-04).
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chargemaster
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process of updating and revising key elements of the chargemaster (or charge description master [CDM]) to ensure accurate reimbursement.
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chargemaster maintenance
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jointly shares the responsibility of updating and revising the chargemaster to ensure its accuracy and consists of representatives of a variety of departments, such as coding compliance financial services, health information management, information services, other departments, and physicians.
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chargemaster team
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data set based on local fee schedules (for outpatient clinical diagnostic laboratory services).
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clinical laboratory fee schedule
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a registered nurse licensed by the state in which services are provided, has a master's degree in a defined clinical area of nursing from an accredited educational institution, and is certified as a CNS by the American Nurses Credentialing Center.
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clinical nurse specialist (CNS)
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communicate new or changed policies, and/or procedures that are being incorporated into a specific CMS Internet-only program manual.
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CMS program transmittal
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an online CMS publication that contains information about regulations and major policies currently under development, regulations and major policies completed or cancelled, and new or revised manual instructions.
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CMS Quarterly Provider Update (QPU)
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dollar multiplier that converts relative value units (RVUs) into payments.
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conversion factor
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clinical lab DMEPOS physician fee schedule skilled nursing facility ambulance fee schedule ambulatory surgica center payment rates
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cost based
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tools and systems that are used to analyze clinical and financial data, conduct research, and evaluate the effectiveness of disease treatments.
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data analytics
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each discahrge is catagorized into a ______ which is based on the patient's principal and secondary diagnosis. as well as procedures
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diagnosis related group
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classifies mental health disorders and is based on ICD; published by the American Psychiatric Association.
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Diagnostic and Statistical Manual (DSM)
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policy in which hospitals that treat a high percentage of low-income patients receive increased Medicare payments.
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disproportionate share hospital (DSH) adjustment
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Medicare reimburses DMEPOS dealers according to either the actual charge or the amount calculated according to formulas that use average reasonable charges for items during a base period from 1986 to 1987, whichever is lower.
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durable medical equipment, prosthetics/orthotics, and supplies (DMEPOS) fee schedule
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contributed to by an employer or employee pay-all plan; provides coverage to employees and dependents without regard to the enrollee's employment status (i.e., full-time, part-time, or retired).
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employer group health plan (EGHP)
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bundles end-stage renal disease (ESRD) drugs and related laboratory tests with the composite rate payments, resulting in one reimbursement amount paid for ESRD services provided to patients; the rate is case-mix adjusted to provide a mechanism to account for differences in patients' utilization of health care resources (e.g., patient's age).
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End-Stage Renal Disease (ESRD) composite payment rate system
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determines appropriate group (e.g., diagnosis-related group, home health resource group, and so on) to classify a patient after data about the patient is input.
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grouper software
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Five-digit alphanumeric codes that represent case-mix groups about which payment determinations are made for the HH PPS.
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health insurance prospective payment system (HIPPS) code set
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data entry software used to collect OASIS assessment data for transmission to state databases.
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Home Assessment Validation and Entry (HAVEN)
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classifies patients into one of 80 groups, which range in severity level according to three domains: clinical, functional, and service utilization.
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home health resource group (HHRG)
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Medicare regulation which permitted billing Medicare under the physician's billing number for ancillary personnel services when those services were incident to a service performed by a physician.
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incident to
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approved teaching hospitals receive increased Medicare payments, which are adjusted depending on the ratio of residents-to-beds (to calculate operating costs) and residents-to-average daily census (to calculate capital costs).
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indirect medical education (IME) adjustment
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system in which Medicare reimburses hospitals for inpatient hospital services according to a predetermined rate for each discharge.
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inpatient prospective payment system (IPPS)
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implimentation of a per diem patient classification system that reflects differences in patient resources use and cost SCHIP balanced budget refinement act of 1999 replaced a resonable cost based system
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inpatient psychiatric facility prospective payment system (IPF PPS)
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software used as the computerized data entry system by inpatient rehabilitation facilities to create a file in a standard format that can be electronically transmitted to a national database; data collected is used to assess the clinical characteristics of patients in rehabilitation hospitals and rehabilitation units in acute care hospitals, and provide agencies and facilities with a means to objectively measure and compare facility performance and quality; data also provides researchers with information to support the development of improved standards.
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Inpatient Rehabilitation Validation and Entry (IRVEN)
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relative volume and types of diagnostic, therapeutic, and inpatient bed services used to manage an inpatient disease.
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intensity of resources
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requires that outpatient preadmission services provided by a hospital for a period of up to three days prior to a patient's inpatient admission be covered by the IPPS DRG payment for diagnostic services (e.g., lab testing) and therapeutic (or nondiagnostic) services when the inpatient principal diagnosis code (ICD-10-CM) exactly matches that for preadmission services.
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IPPS 3-day payment window
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requires that outpatient preadmission services provided by a hospital for a period of up to three days prior to a patient's inpatient admission be covered by the IPPS DRG payment for diagnostic services (e.g., lab testing) and therapeutic (or nondiagnostic) services when the inpatient principal diagnosis code (ICD-10-CM) exactly matches that for preadmission services.
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IPPS 72-hour rule
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any patient with a diagnosis from one of ten CMS-determined DRGs, who is discharged to a post acute provider, is treated as a transfer case; this means hospitals are paid a graduated per diem rate for each day of the patient's stay, not to exceed the prospective payment DRG rate.
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IPPS transfer rule
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provided by an employer that has 100 or more employees or a multiemployer plan in which at least one employer has 100 or more full- or part-time employees.
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large group health plan (LGHP)
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maximum fee a provider may charge. Non-Par doctors usually report only the _______ as their fee
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limiting charge
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classifies patients according to long-term (acute) care DRGs, which are based on patients' clinical characteristics and expected resource needs; replaced the reasonable cost-based payment system. BBRA of 1999 aurthorized implementation of per discharge DRG for cost reporting periods begining oct. 1 2002 (2008 medicare severity long term care diagnosis related groups were adopted for LTCH PPS
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long-term (acute) care hospital prospective payment system (LTCH PPS)
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organizes diagnosis-related groups (DRGs) into mutually exclusive categories, which are loosely based on body systems (e.g., nervous system).
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major diagnostic category (MDC)
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payment system that reimburses providers for services and procedures by classifying services according to relative value units (RVUs); also called resource-based relative value scale (RBRVS) system. 1992 - RBRVS)
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Medicare physician fee schedule (MPFS)
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situations in which the Medicare program does not have primary responsibility for paying a beneficiary's medical expenses.
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Medicare Secondary Payer (MSP)
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adopted by Medicare in 2008 to improve recognition of severity of illness and resource consumption and reduce cost variation among DRGs; bases DRG relative weights on hospital costs and greatly expanded the number of DRGs; reevaluated complications/comorbidities (CC) list to assign all ICD-10-CM codes as non-CC status (conditions that should not be treated as CCs for specific clinical conditions), CC status, or major CC status; handles diagnoses closely associated with patient mortality differently depending on whether the patient lived or expired.
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Medicare severity diagnosis-related groups (MS-DRGs)
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previously called an Explanation of Medicare Benefits or EOMB; notifies Medicare beneficiaries of actions taken on claims.
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Medicare Summary Notice (MSN)
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standards of measurement, such as those used to evaluate an organization's revenue cycle to ensure financial viability.
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metrics
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has two or more years of advanced training, has passed a special exam, and often works as a primary care provider along with a physician.
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nurse practitioner (NP)
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group of data elements that represent core items of a comprehensive assessment for an adult home care patient and form the basis for measuring patient outcomes for purposes of outcome-based quality improvement.
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Outcomes and Assessment Information Set (OASIS)
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hospitals that treat unusually costly cases receive increased Medicare payments; the additional payment is designed to protect hospitals from large financial losses due to unusually expensive cases.
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outlier
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includes all outpatient procedures and services (e.g., same-day surgery, x-rays, laboratory tests, and so on) provided during one day to the same patient.
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outpatient encounter
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includes all outpatient procedures and services (e.g., same-day surgery, x-rays, laboratory tests, and so on) provided during one day to the same patient.
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outpatient visit
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classifies patients into IRF PPS (inpatient rehabilitation facility) groups based on clinical characteristics and expected resources needs
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patient assesment instrument
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reimbursement method the federal government uses to compensate providers for patient care.
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payment system
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has two or more years of advanced training, has passed a special exam, works with a physician, and can do some of the same tasks as the doctor.
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physician assistant (PA)
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IPPS Inpatienet psychiatric facility PPS home health hospital inpatient long term care pps
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Priced based
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rates established in advance, but based on reported health care costs (charges) from which a prospective per diem rate is determined.
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prospective cost-based rates
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rates associated with a particular category of patient (e.g., inpatients) and established by the payer (e.g., Medicare) prior to the provision of health care services.
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prospective price-based rates
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payment components consisting of physician work, practice expense, and malpractice expense.
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relative value units (RVUs)
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data entry system used to enter MDS data about SNF patients and transmit those assessments in CMS-standard format to individual state databases.
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Resident Assessment Validation and Entry (RAVEN)
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distribution of financial resources among competing groups (e.g., hospital departments, state health care organizations).
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resource allocation
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uses data analytics to measure whether a health care provider or organization achieves operational goals and objectives within the confines of the distribution of financial resources, such as appropriately expending budgeted amounts as well as conserving resources and protecting assets while providing quality patient care.
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resource allocation monitoring
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payment system that reimburses physicians practices expenses based on relative values for three components of each physicians services: physician work, practice expence, and malpractice insurance expense
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resource based relative value (RBRVS) system
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reimbursement system in which hospitals report actual charges for inpatient care to payers after discharge of the patient from the hospital.
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retrospective reasonable cost system
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a four-digit code that indicates location or type of service provided to an institutional patient; reported in FL 42 of UB-04.
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revenue code
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assessment process that is conducted as a follow-up to revenue cycle monitoring so that areas of poor performance can be identified and corrected.
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revenue cycle auditing
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process facilities and providers use to ensure financial viability.
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revenue cycle management
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involves assessing the revenue cycle to ensure financial viability and stability using metrics (standards of measurement).
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revenue cycle monitoring
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likelihood of dying.
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risk of mortality (ROM)
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extent of physiological decompensation or organ system loss of function.
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severity of illness (SOI)
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reduction of payment when office-based services are performed in a facility, such as a hospital or outpatient setting, because the doctor did not provide supplies, utilities, or the costs of running the facility.
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site of service differential
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each cpt and hcpcs level ii code is assined a statis indicator as a payment indicator to identify how each code is paid (or not paid) under the OPPS S - significant procedures for which the multiple procedure payment does NOT apply T - service to which the multiple procedures payment reduction applies
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statis indicator (SI)
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adjusts payments to account for geographic variations in hospitals' labor costs. add ons - such as pass-through payments that provide additional reimburcement to hospitals that use innovative biologicals, drugs, and technical devises, outlier payments for high cost services hold harmless payments for some hospitals and tranditional payments to limit loss under OPPS can increase payments
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wage index
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