Ambulatory Payment Classifications (APC)

Ambulatory Payment Classifications (APCs) were created by the Centers for Medicare and Medicaid Services to pay for facility (hospital) outpatient services. The Outpatient Prospective Payment System (OPPS), which uses APCs for pricing, was implemented on August 1, 2000. APC payments are made when Medicare beneficiaries are discharged from the Emergency Department or clinic, or is transferred to another facility not affiliated with the initial hospital. APCs have been adopted by Medicaid and other third-party private health insurers.

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