Aligning Payment with Quality: OPPS and the Hospital Outpatient Quality Reporting (OQR) Program

The Hospital OQR program is a pay-for-reporting quality data program for hospital outpatient services.

As a coding professional with 20-plus years of coding and documentation integrity experience under my belt, I humbly recognize that I don’t know everything, and must stay curious and open to learning the ever-changing world of coding, documentation, and reimbursement methodologies. This allows me to remain relevant as a professional and continue to add value to the organization I work for; I hope and trust all of you feel the same way.

As I was preparing a presentation late last year on the American Medical Association (AMA) CPT® Coding updates and the Medicare Hospital Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) Payment System Final Rule for the 2021 calendar year, I stumbled upon the requirements for the Hospital Outpatient Quality Reporting (OQR) Program.

For many years my interest in CPT and OPPS updates has centered around the CPT changes, the OPPS Ambulatory Payment Classification (APC) and payment status indicator updates, the inpatient-only list, and the OPPS pass-through payments for devices, drugs, biologicals, and radiopharmaceuticals, etc. I must admit, I have not really focused too much on the OQR Program.

Although OPPS began in August 2000, the Hospital OQR program was mandated by the Tax Relief and Health Care Act of 2006, and became effective for payment beginning in the 2009 calendar year. The Hospital OQR program is a pay-for-reporting quality data program for hospital outpatient services, and requires hospitals to meet quality reporting requirements or get a 2-percentage point reduction in their annual payment update. Hospitals qualify for the full OPPS update factor by submitting required quality data for specific quality-of-care measures. Measures of quality may be of various types, including those of process, structure, outcome, and efficiency. In addition to providing hospitals with a financial incentive to report their quality-of-care measure data, the Hospital OQR Program provides the Centers for Medicare & Medicaid Services (CMS) with data to help Medicare beneficiaries make more informed decisions about their healthcare. Hospital quality-of-care information gathered through the Hospital OQR Program is available on the CMS.gov Hospital Compare website.

The table below shows the quality measures for 2021. Currently there are 15 quality measures, including two outcomes-based measures added in 2020. For some of the measures, the data is abstracted from the medical record; for some of the measures, the data is captured via CART, the web-based CMS Abstraction and Reporting Tool; and the outcomes data is captured from hospital outpatient claims. The measures focus on high-impact services and support national priorities for improved quality and efficiency of care for Medicare beneficiaries. For 2021, CMS did not make any changes to the measures used for payment determination. They did, however, finalize a review and corrections period for web-based measures. This review and correction period would run concurrently with the submission period. This would allow hospitals to enter, review, and correct data submitted directly to CMS prior to the submission deadline.

The patient is at the center of everything we do. The accuracy of documentation and the accuracy of coded data impacts healthcare organization and patient care. As coding and documentation integrity professionals, we should know what is being measured and why, and how we can help. Can an outpatient clinical documentation improvement (CDI) program incorporate some of these measures that require abstracting into their work responsibilities? Can an outpatient CDI program bring awareness of the measures and the data collected, and provide it to the impacted clinical areas? Can an outpatient CDI program collaborate with the quality department to strengthen the data collected and reported? Quality reporting, in some capacity, is certainly something to consider for your outpatient CDI program.

Deighan031621

Programming Note: Listen to Colleen Deighan report this story live today during Talk Ten Tuesdays, 10-10:30 a.m. Eastern.

Facebook
Twitter
LinkedIn

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

AI, Audits, and the Future of the Revenue Cycle

Artificial intelligence is rapidly transforming healthcare revenue cycle operations, from coding and auditing to compliance and denials. Join industry leaders Pam Warren (MaineHealth) and Raemarie Jimenez (AAPC) for a live fireside chat exploring how AI is changing workflows, workforce roles, payer-provider dynamics, and compliance risk—and what organizations should be doing now to prepare.

June 17, 2026

Trending News

Featured Webcasts

Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules – Part 2

Medicare regulations are complex and even seasoned professionals struggle to apply them consistently. Due to overwhelming demand, Dr. Hirsch returns for Part 2 of Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules to answer even more of Medicare’s most misunderstood questions, covering inpatient status, observation, SNF access, Medicare Advantage denials, and more. Join Dr. Hirsch as he provides clear, referenced answers to real-world questions submitted by your peers, helping you navigate Medicare compliance with confidence and clarity.

June 18, 2026

Reengineering Utilization Management: Building an Adaptive Model for the New Payer Era

Traditional utilization management models can no longer keep pace with regulatory shifts, payer scrutiny, and operational pressures. In this webcast, Tiffany Ferguson, LMSW, CMAC, ACM, ACPA-C, introduces an Adaptive Model strategy that modernizes UM through role specialization, technology-driven workflows, and proactive, team-based processes. Attendees will learn how to restructure programs to improve efficiency, strengthen clinical collaboration, and enhance financial performance in a rapidly changing healthcare environment.

May 20, 2026

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

Trending News

Prepare for the 2025 CMS IPPS Final Rule with ICD10monitor’s IPPSPalooza! Click HERE to learn more

Get 15% OFF on all educational webcasts at ICD10monitor with code JULYFOURTH24 until July 4, 2024—start learning today!

This Memorial Day, we honor those who gave all for our freedom. Take 20% off sitewide through May 29 with code MEMORIAL26 at checkout

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24