chapter 7 workbook
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Dec 6, 2023
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Principles of Healthcare Reimbursement and Revenue Cycle Management
Student Workbook
Chapter 7
Application and Data Analysis Exercises
Application and data analysis exercises are provided at three levels of understanding. Basic exercises
focus on Bloom’s Taxonomy levels 1 (remembering) and 2 (understanding). Intermediate exercises relate
to Bloom’s Taxonomy levels 3 (applying) and 4 (analyzing). Advanced exercises are presented at Bloom’s
Taxonomy levels 5 (evaluating) and 6 (creating). Intermediate and advanced exercises require critical
thinking and analysis of data or scenarios.
Beginner Exercises
1.
Matching (Level 1—Remembering)
Match the payment status indicator on the left with the description on the right. Reference table 7.1 for a
listing of payment status indicators.
Payment Status
Indicator (SI)
Answer
Description
A
T
APC payment reimbursement methodology: included in
New Technology APCs, discounted when multiple of this
SI appear on same claim, same day of service
C
J1
Comprehensive APC Payment: all services are packaged
with this SI
H
N
Packaged payment
J1
K
APC payment reimbursement methodology: drugs,
biologicals and radiopharmaceuticals that are not pass-
through eligible
K
Q1
Conditional APC payment: STV conditionally packaged
services
N
C
Inpatient only procedures
Q1
Q4
Conditional APC payment or via the Clinical Lab Fee
Schedule when applicable
Q3
A
Fee schedule payment: example is physical therapy
Q4
S
APC payment reimbursement methodology: included in
New Technology APCs, multiple procedure reduction does
not apply
S
V
APC payment reimbursement methodology: emergency
department encounters
T
H
Reasonable cost reimbursement methodology: Pass-
through devices with no copayment
V
Q3
Composite APC payment: APC 8004 Ultrasound
2.
Chapter 7 PPS Grid (Level 2—Understanding)
For this exercise use the Word file titled AB202019_Ch07_Payment System Grid.docx.
Complete the grid by using information provided in the textbook. Include a brief explanation for
each category rather than a “yes” or “no.” This grid may be used as a study guide for exams.
Intermediate Exercises
1.
Practice with APCs (Level 3—Interpreting)
This assignment is designed to give the student practice with understanding APC concepts,
groups, and payment rates. Students will use the most recent OPPS Addendum A and Addendum
B. Addendums A and B are located at
https://www.cms.gov/Medicare/Medicare-Fee-for-Service-
Payment/HospitalOutpatientPPS/Addendum-A-and-Addendum-B-Updates
.
INSTRUCTIONS:
Locate the most recent OPPS Addendum A and Addendum B on the
Medicare website.
1.
Using Addendum A, identify a set (example is Pathology) of surgical APCs that are paid
at the full rate. Exclude New Technology.
a.
Set:
Critical care (5041) or Trauma Response with Critical Care (5045)
b.
Status Indicator:
S
2.
Using Addendum A, identify a set (example is Airway Endoscopy) of surgical APCs that
are paid at a discounted rate when multiple procedures are performed. Exclude New
Technology.
a.
Set:
Level 1 – 5 Skin procedures (5051-5055)
b.
Status Indicator:
T
3.
In Addendum A, locate APCs 5111-5116. APC 5111 is SI T and the remaining APCS are
SI J1. How is SI J1 different from T?
SI J1: the hospital services payment is through comprehensive APC and not paid
separately.
SI T: the payment is under OPPS and are paid separately.
4.
Using Addendum B, locate five packaged codes/services from different areas of the code
set (i.e., not all five from anesthesia).
1.
X:
00100 - 00104
2.
X:
00550 – 0055T
3.
X:
43197 - 43200
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