Health Care Financing Administration 7500 Security Blvd., Baltimore, MD. 21244-1850

99 -- EVALUATION OF COMMENTS ON PROPOSED AMBULATORY PAYMENT CLASSIFICATIONS POC Lucille Fussell-Lee, Contract Specialists (410) 786-5447 The Health Care Financing Administration (HCFA) intends to award on a sole source basis, under the Simplified Acquisition Procedures a firm fixed price award to the 3M Health Information Systems, Inc., 100 Barnes Road, Wallingford, CT 06492. HCFA intends to procure analytical and clinical support services from 3M Health Information Systems to evaluate comments received in response to two rules published in the Federal Register during 1998 concerning the proposed use of ambulatory payment classifications (APCs) as the basis for Medicare prospective payment for services furnished in hospital outpatient departments and ambulatory surgical center services (ASCs). The contractor will (1) evaluate comments on the proposed use of ambulatory payment classifications (APCs) as the basis for Medicare prospective payment for hospital outpatient and ambulatory surgical center services; (2) modify the APCs as warranted in response to the comments; and (3) prepare written responses to the comments which we expect to publish in the Federal Register in 1999 as part of the final rules for both the hospital outpatient prospective system and ASC prospective facility rates. The 3M Health Information Systems, Inc., is uniquely qualified to conduct this project. 3M has extensive experience in the design, construction, and application of ambulatory patient groups to prospective payment systems for the hospital outpatient setting. >From 1988-1990, HCFA entered into a cooperative agreement with 3M to develop a classification system for outpatient services. HCFA submitted a report to the Congress in 1995, which stated that the ambulatory patients groups or APGs developed by 3M were the most promising hospital outpatient classification system, and recommended adopting APG-like groups as the basis for the Medicare hospital outpatient. 3M has the analytical and clinical resources necessary to conduct this project. Moreover, it has the background and extensive experience in developing APGs and overseeing their implementation by otherpayors that distinguishes its qualifications from other potential contractors. 3M's unique qualifications would enable HCFA to complete this project within the tight time contraints under which it is operating to implement a PPS for hospital outpatient department services and a rebased payment system for ASC services as soon as possible after January 1, 2000. All responsible sources may submit capability statements in consideration to the Agency at the above address. Posted 04/01/99 (I-SN315415). (0091)

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