Certified Inpatient Coding (CIC) Practice Exam

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What does the payment status indicator "S" indicate under APCs?

  1. Ancillary service

  2. Clinic or emergency department visit

  3. Significant procedure, discounted

  4. Significant procedure, non-discounted

The correct answer is: Significant procedure, non-discounted

The payment status indicator "S" under Ambulatory Payment Classifications (APCs) is specifically used to denote significant procedures that are non-discounted. This indicator informs healthcare providers and coders that the APC payment for the associated procedure is full, without any reduction due to its nature or relationship with other services rendered on the same day. Understanding the implications of the payment status indicators is vital for accurate billing and reimbursement. An "S" status indicates that the hospital can expect full payment for that significant procedure, reflecting its importance and the resources necessary to perform it. This can affect healthcare entities differently based on the services offered and their reimbursement strategies, making it essential that coders identify procedures correctly to maximize revenue and comply with regulations. In contrast, the other options pertain to different indicators that carry their own meanings, focusing either on ancillary services or discounted procedures, but they do not apply in this context for an "S" classification.