What is the basis for calculating ASC payment rates according to the new facility payment system?

The basis for calculating Ambulatory Surgical Center (ASC) payment rates according to the new facility payment system is centered on the Ambulatory Payment Classification (APC) relative payment weights established for hospitals. This framework is designed to ensure that payments to ASCs are aligned with the costs associated with outpatient procedures in hospitals, which are categorized under APCs.

The APC system groups similar clinical services together into classifications that reflect the resources used in delivering care. Each classification has a relative weight that reflects its costliness, thus creating a standardized payment system. This method allows for a more equitable reflection of procedure costs, ensuring that ASCs receive a fair payment based on the complexity and resource needs of the surgical procedure conducted.

In contrast, other options do not provide the correct basis for ASCs. For instance, while the average cost of procedures in hospitals might inform decision-making, it does not directly equate to the payment structure established for ASCs. Similarly, the performance ranking of ASC facilities is relevant for quality metrics but does not dictate the payment rate calculation itself. Lastly, historical payment rates for outpatient surgeries might reflect past financial data but do not serve as the current basis under the revised payment system. Hence, the correct choice underscores the role of APC relative payment weights as