Out Patient Prospective Payment

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Medicare uses the Medicare Physician Fee Schedule to pay physicians and the Outpatient Prospective Payment System to pay hospitals and other outpatient facilities. Recently, the Centers for Medicaid and Medicare Services (CMS) made changes to physician and outpatient payments. The five levels clinic visit codes or five outpatient codes were replaced with a single code. “The Chronic Care Management Fee will go into effect in January 2014 and will be the new form of physician compensation. Bundle Payment is a way for paying for high volume, high cost hospital procedures. Global payment enables providers to reduce unnecessary care and bring down spending under control but creates incentives for providers to restrain the supply of services.

PHYSICIANS AND OUTPATIENT MEDICARE METHODS OF PAYMENTS 3
Introduction
Medicare uses the Medicare Physician Fee Schedule to pay physicians and the Outpatient Prospective Payment System to pay hospitals and other outpatient facilities. Recently, the Centers for Medicaid and Medicare Services (CMS) made changes to physician and outpatient payments. The five levels clinic visit codes or five outpatient codes were replaced with a single code. The Chronic Care Management Fee will go into effect in January 2014 and will be the new form of physician compensation. “These changes are essential if we're going to create a healthcare system that delivers better care at lower cost," Blum (2013). Bundle Payment is a way for paying for high volume, high cost hospital procedures. Global payment enables providers to reduce unnecessary care and bring down spending under ...

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... In summary, Medicare payment system is aimed at containing the rising cost of health care and enables providers to provide quality and coordinated care. Medicare uses the Medicare physician fee schedule to pay physicians and the outpatient prospective payment system to pay outpatient facilities. Bundle Payment is a way for paying for high volume, high cost hospital procedures. Global payment enables providers to reduce unnecessary care and bring down spending under control but creates incentives for providers to restrain the supply of services. The Obama administration recently made some changes to physicians and outpatient method of payment. The five levels clinic and outpatient codes have been replaced by a single code. Physicians will be reimbursed based on the chronic care management fee.

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