How are outpatient services primarily reimbursed under Medicare?

Outpatient services under Medicare are primarily reimbursed through the Ambulatory Payment Classification (APC) system. This system categorizes outpatient services into groups that are expected to have similar costs. Each APC represents a payment amount designed to cover the facility costs associated with performing a specific outpatient service. By grouping services based on clinical and resource similarities, the APC system allows for more standardized payments, which can reflect the complexity and resource use involved in delivering outpatient care.

The APC system is specifically designed for outpatient settings, distinguishing it from other methods that may apply to inpatient services or other healthcare areas. For instance, Diagnosis-Related Groups (DRGs) are used for inpatient hospital services, while per diem rates are generally utilized for long-term care or skilled nursing facilities. Global budgets, while applicable in certain healthcare financing models for larger health systems, are not specifically used for outpatient Medicare reimbursement. The focus on the APC system emphasizes its relevance and application in the context of Medicare's outpatient service reimbursement methodology.