Health Information Management

Tip: Review common services to determine effect to geometric mean

APCs Insider, January 18, 2013

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CMS finalized a change to the way it generates APC relative weights: For 2013, the agency will use geometric mean costs instead of median costs when calculating the weights.

In the OPPS final rule, CMS acknowledged some of the limitations of using the geometric mean but also ­addressed some of the benefits, including the agency's ability to make cost comparisons between IPPS and OPPS.
 
As always some APC payments will increase, while others will go down. How that effects a facility will depend on the specific services and the facility provides and how often those services are provided.
Review your top APCs and procedures, then compare the 2012 payment rates to the 2013 payment rates to determine whether your facility’s revenue will increase or decrease.  
 
The tip is adapted from “CMS finalizes changes to drug payments, relative weight calculations” in the January Briefings on APCs.



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