What term describes financial protections ensuring certain facilities recover losses due to APC payment discrepancies?

The term that describes financial protections ensuring that certain facilities recover losses due to APC (Ambulatory Payment Classification) payment discrepancies is "hold harmless." This concept is fundamental in healthcare reimbursement practices, particularly in scenarios where payment rates do not fully cover the costs incurred by the facilities.

When facilities are in a hold harmless arrangement, it means they are protected against specific financial losses resulting from reduced payment rates or discrepancies in reimbursement. This ensures that patients and facilities are not adversely impacted, allowing facilities to remain financially stable despite challenges in payment structures.

In contrast, limiting charge pertains to the maximum amount that a provider can charge a patient in a non-participating status, indemnity insurance typically refers to a broader category of insurance that provides compensation for a loss, and pass-through generally refers to costs that are directly passed along to the payer without markup. These terms do not specifically address the protection against losses related to APC payment discrepancies, making "hold harmless" the most accurate term in this context.