Hospital Outpatient Prospective Payment System
HOPPS is used by CMS to reimburse for hospital outpatient services. CMS created HOPPS to reduce beneficiary co-payments in response to rapidly growing Medicare expenditures for outpatient services and large co-payments being made by Medicare beneficiaries.
All covered outpatient services belong to an Ambulatory Payment Classification group. Each group of procedure (i.e., codes) within an APC is supposed to be "similar clinically and with regard to resource consumption
Hospital Outpatient Prospective Payment System Rule