It is my understanding the APG's (Ambulatory Payment Group) was the methodology developed for and used by Medicaid (and private BCBS plans) to pay for outpatient procedures performed in hospitals or freestanding facilities. This method was never adopted by Medicare. However, the BBA of 1997 mandated that Medicare implement some method of outpatient payment and in 2000, Medicare started reimbursing for these services using the APC (Ambulatory Payment Classification).
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