Ambulatory payment classification (APC) system

1. Method developed by the Centers for Medicare and Medicaid Services (CMS) for outpatient hospital reimbursement based on procedures that have similar clinical characteristics and similar costs rather than on diagnoses. 2. Medicare’s outpatient prospective payment system (OPPS) for hospital outpatient services that became effective August 1, 2000. Depending on the services given, hospital facilities may be paid for more than one APC for an encounter. APC information is updated and released twice a year in the Federal Register. Also called ambulatory payment classes, ambulatory patient classifications (APCs), and ambulatory patient care groups.