Here's how HCFA determined the rates

ORM: How did the Health Care Financing Administration (HCFA) arrive at the new rates for ambulatory surgery centers (ASCs) and hospital-based outpatient facilities?

HCFA: We're proposing changes to the rates for virtually all ASC procedures based on data from a survey we conducted in 1994 of a representative sample of ASCs. Using that survey, we collected information on charges, utilization, and overall facility costs, as well as some procedure-specific cost data, and we audited and analyzed that data, which is the basis for the ASC payment rates proposed in the June 12 [Federal Register] notice.

The [ambulatory payment classification] system for hospital outpatient facilities and for ASCs will be the same. But the payment rates may be different because the rate-setting method is different. We explain in the Federal Register notice how the rates are set. n