Outpatient Hospital Payment

Outpatient Hospital Payment

Upcoming Rule Change

The Department has recently received approval from CMS for its State Plan update reflecting a 1.4% rate increase to EAPG base rates effective July 1 2017. The proposed update to the rule will be presented as an emergency rule update to the Medical Services Board on October 13th, 2017. See below for the attachment for the proposed update to the existing rule.

Medical Services Board Rate Update

For all input and feedback on the proposed rule change, please email HCPF_Hospitalregulatory@state.co.us.


Enhanced Ambulatory Patient Groups (EAPG)

The Department of Health Care Policy and Financing (the Department) has a scheduled implementation of the Enhanced Ambulatory Patient Grouping System for October 31, 2016. Enhanced Ambulatory Patient Groups (EAPG) weight tables are provided for reference by various health care partners and providers. The relative weight tables are used by the Department to reimburse hospitals for outpatient services. The Department has compiled a list of Frequently Asked Questions regarding the implementation which can be viewed by clicking here.

EAPG Weight Tables

EAPG Hospital-specific Base Rates



Hospitals will not be required to purchase the EAPG software to facilitate the implementation of EAPGs. The EAPG grouper specific to Colorado Medicaid will assign the EAPGs to the claim lines and calculate the payment within the Department’s MMIS system. Hospitals may choose to purchase the EAPG grouping software allowing them to project revenue. For sales inquiries, please contact 3M Health Information System. For access to the EAPG Definitions Manual, please see 3M's Definitions Manual Order Agreement. 


Engagement Meetings

The Department will be hosting meetings to address EAPG processes bi-weekly from 2pm to 4pm. Attendance can be in person at 303 E 17th Avenue, Denver CO 80203 or by logging into the webinar link listed below. Prior meeting’s recordings can be found under the date of the meeting.

Webinar Link https://cohcpf.adobeconnect.com/eapg/

Policy Decisions

The Department presented documents during the informational meetings containing the policy decisions required for the implementation of the EAPG system. Please click here for a copy of the Department's policy decisions to date.

For all questions relating to the implementation of EAPGs, please contact the Department at HCPF_Hospitalregulatory@state.co.us.

As part of the HB 09-1293 provisions, the Department of Health Care Policy and Financing (the Department) is authorized to develop and implement improvements to the current hospital payment methodologies, including but not limited to the development of incentive payments, implementation of new payment systems, and rate reform.