APPENDIX E

Payment System Reference

The payment methodology for Medicare claims is often followed by other payers soon after Medicare implementation. This appendix is intended to describe the payment methodologies used by different types of facilities or providers.

Type of Provider or Facility or Service

Payment Method and Rate

Ambulance

Ambulance fee schedule

Ambulatory Surgery Center (ASC)

Prospective payment—Ambulatory Payment Classification (APCs)

Cancer Hospital

Reasonable cost

Certified Nurse Midwife (CNM)

100% of physician fee schedule if billing independently

Clinical Nurse Specialist (CNS)

85% of physician fee schedule if billing independently

Clinical Psychologist (CP) or Independently Practicing Psychologist (IPP)

100% of physician fee schedule. Limited range of services.

Certified Registered Nurse Anesthetist (CRNA) or Anesthesia Assistant (AA)

Anesthetist fee based on anesthesia base and time units

Clinical social worker (CSW)

75% of physician fee schedule

Comprehensive Outpatient Rehab Facility (CORF)

Fee schedule

Community Mental Health Center (CMHC)

Outpatient prospective payment (APC) for partial hospitalization

Critical Access Hospital (CAH)

Reasonable cost rule

Durable Medical Equipment (DME)

Fee schedule

End-Stage Renal Disease Facility (ESRD)

Composite fee schedule

Federally Qualified Health Center (FQHC)

Prospective payment

Home Health Agency (HHA)

Prospective payment—home health resource groups

Hospice

Daily rate based on level of care

Hospital Inpatient

Prospective Payment—Diagnosis Related Groups (DRG)

Hospital Outpatient

Prospective payment—Ambulatory Payment Classification (APC)

Hospital Outpatient Lab

Laboratory fee schedule

Hospital Outpatient Occupational Therapy

Fee schedule

Hospital Outpatient Physical Therapy

Fee schedule

Hospital Outpatient Speech Therapy

Fee schedule

Independent Diagnostic Testing Facility

Fee schedule

Inpatient Psychiatric

Prospective payment—IPF DRG per diem

Inpatient Rehab

Prospective payment IRF based on PAI (Patient Assessment Instrument)

Nurse Practitioners

85% of physician fee schedule if billing independently

Nursing home intermediate care

Covered by Medicaid—system varies from state to state

Nursing home skilled care (SNF)

Prospective payment—Resource Utilization Groups (RUGS)

Occupational therapy (private practice)

Fee schedule

Physical therapy (private practice)

Fee schedule

Physician assistant (PA)

85% if billing under own number with physician supervision

Physician services

Physician fee schedule or capitation for managed care

Rural health clinic (RHC)

Cost per visit rate

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