--- title: "TPT, Transitional Pass-Through Payment | MedTech Terms" description: "Supplemental outpatient payment for new device technologies. Plain-English Reimbursement definition for MedTech teams, with examples and related terms." lang: en json-ld: | { "@context": "https://schema.org", "@graph": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/tpt#term", "name": "Transitional Pass-Through Payment", "alternateName": "TPT", "description": "TPT provides supplemental Medicare outpatient (OPPS) payment for new devices for 2–3 years while CMS gathers utilization data to incorporate device costs into APC payment rates.", "url": "https://medtechterms.com/terms/tpt", "termCode": "tpt", "inDefinedTermSet": { "@type": "DefinedTermSet", "name": "MedTech Terms", "url": "https://medtechterms.com/terms" } }, { "@type": "Article", "@id": "https://medtechterms.com/terms/tpt#article", "headline": "TPT, Transitional Pass-Through Payment", "description": "Supplemental outpatient payment for new device technologies.", "url": "https://medtechterms.com/terms/tpt", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://medtechterms.com/terms/tpt" }, "about": { "@id": "https://medtechterms.com/terms/tpt#term" }, "articleSection": "Reimbursement", "inLanguage": "en", "keywords": "Transitional Pass-Through Payment, TPT, Reimbursement, medical device, MedTech", "author": { "@type": "Person", "name": "Christian Espinosa", "jobTitle": "Founder, Blue Goat Cyber", "url": "https://bluegoatcyber.com" }, "publisher": { "@type": "Organization", "name": "MedTech Terms", "url": "https://medtechterms.com" }, "isPartOf": { "@type": "WebSite", "name": "MedTech Terms", "url": "https://medtechterms.com" }, "datePublished": "2026-05-05", "dateModified": "2026-05-05", "citation": [ { "@type": "CreativeWork", "name": "AMA CPT Resources", "url": "https://www.ama-assn.org/practice-management/cpt", "publisher": { "@type": "Organization", "name": "AMA" } }, { "@type": "CreativeWork", "name": "AdvaMed - Payment & Coverage", "url": "https://www.advamed.org/our-work/", "publisher": { "@type": "Organization", "name": "AdvaMed" } } ], "mentions": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/ntap#term", "name": "New Technology Add-On Payment", "alternateName": "NTAP", "url": "https://medtechterms.com/terms/ntap" }, { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/opps#term", "name": "Outpatient Prospective Payment System", "alternateName": "OPPS", "url": "https://medtechterms.com/terms/opps" }, { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/asc-shift#term", "name": "ASC Site-of-Service Shift", "url": "https://medtechterms.com/terms/asc-shift" } ] }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://medtechterms.com/" }, { "@type": "ListItem", "position": 2, "name": "Terms", "item": "https://medtechterms.com/terms" }, { "@type": "ListItem", "position": 3, "name": "Reimbursement", "item": "https://medtechterms.com/terms?cat=Reimbursement" }, { "@type": "ListItem", "position": 4, "name": "Transitional Pass-Through Payment", "item": "https://medtechterms.com/terms/tpt" } ] }, { "@type": "FAQPage", "@id": "https://medtechterms.com/terms/tpt#faq", "mainEntity": [ { "@type": "Question", "name": "What is the primary purpose of Transitional Pass-Through Payment?", "acceptedAnswer": { "@type": "Answer", "text": "The primary purpose of TPT is to provide temporary, supplemental Medicare payment for new medical devices in the outpatient setting. This allows for market adoption and data collection before the device's costs are fully integrated into standard payment classifications." } }, { "@type": "Question", "name": "How long does Transitional Pass-Through Payment typically last?", "acceptedAnswer": { "@type": "Answer", "text": "TPT status typically lasts for a period of two to three years. This timeframe is designed to allow CMS sufficient time to gather utilization data and assess the device's cost-effectiveness." } }, { "@type": "Question", "name": "What happens after the TPT period ends?", "acceptedAnswer": { "@type": "Answer", "text": "After the TPT period concludes, CMS uses the collected utilization and cost data to incorporate the device's payment into the standard Ambulatory Payment Classification (APC) system. The supplementary payment ceases, and the device is reimbursed under the established APC rates." } }, { "@type": "Question", "name": "Is TPT applicable to all new medical devices?", "acceptedAnswer": { "@type": "Answer", "text": "No, not all new medical devices are eligible for TPT. Specific criteria, often related to the newness of the device and its clinical benefit, must be met for CMS to grant TPT status, as defined in CMS regulations." } } ] } ] } --- [ MedTech Terms The authoritative reference ](/) Browse Learn [Latest](/latest) About 1. [Home](/) 2. / 3. [Terms](/terms) 4. / 5. [Reimbursement](/terms?cat=Reimbursement) 6. / 7. Transitional Pass-Through Payment [All terms](/terms) Reimbursement [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer)TPT # Transitional Pass-Through Payment Supplemental outpatient payment for new device technologies. Reviewed by [Christian Espinosa, Founder, Blue Goat Cyber](/authors/christian-espinosa) Last reviewed May 5, 2026 ## Definition TPT provides supplemental Medicare outpatient ( [OPPS](/terms/opps)) payment for new devices for 2–3 years while CMS gathers utilization data to incorporate device costs into [APC](/terms/apc) payment rates. What the regulation says The Centers for Medicare & Medicaid Services (CMS) outlines the Transitional Pass-Through Payment (TPT) mechanism in its regulations to support the adoption of new medical devices in the outpatient setting. TPT provides additional reimbursement for new devices for a limited period, typically two to three years, allowing CMS to collect data on their utilization and cost. This data is subsequently used to establish appropriate payment rates within the [Ambulatory Payment Classification](/terms/apc) (APC) system, as described in relevant sections of the Social Security Act and its implementing regulations. ## What this means in practice Outpatient analog of [NTAP](/terms/ntap). Highly important for ASC- and HOPD-administered procedures ( [structural heart](/terms/structural-heart), EP, ophthalmology). ## Examples - A novel implantable cardiac monitor receives TPT status, allowing hospitals to be reimbursed for the device's cost in addition to the procedure for two years. - A new surgical ablation catheter is granted TPT, facilitating its adoption in outpatient procedures while CMS collects data on its usage and associated costs. - A company developing an innovative drug delivery system for outpatient administration seeks TPT to ensure adequate reimbursement during its initial market phase. Common pitfalls - • A common pitfall is misunderstanding the limited duration of TPT status, which is not a permanent reimbursement mechanism. - • Another mistake is failing to collect robust real-world evidence during the TPT period, which can hinder future APC rate setting. - • Companies sometimes misjudge the data submission requirements for continued TPT eligibility and eventual APC integration. - • Not all new devices are eligible for TPT, leading to misaligned expectations regarding reimbursement pathways. - • Failing to engage with CMS early can result in delays or missed opportunities for TPT consideration. ## Frequently asked questions What is the primary purpose of Transitional Pass-Through Payment? The primary purpose of TPT is to provide temporary, supplemental Medicare payment for new medical devices in the outpatient setting. This allows for market adoption and data collection before the device's costs are fully integrated into standard payment classifications. How long does Transitional Pass-Through Payment typically last? What happens after the TPT period ends? Is TPT applicable to all new medical devices? ## Cross-references ### Often confused with Distinct concept frequently mistaken for this one. - [ New Technology Add-On Payment(NTAP) NTAP is inpatient (IPPS); TPT is outpatient (OPPS). ](/terms/ntap) ## Related terms Grouped by theme ### Editor's picks · Hand-selected related concepts [ Reimbursement ASC Site-of-Service Shift Migration of procedures from hospitals to ambulatory surgery centers. ](/terms/asc-shift)[ Reimbursement New Technology Add-On Payment(NTAP) Supplemental Medicare payment for inpatient use of qualifying new technologies. ](/terms/ntap)[ Reimbursement Outpatient Prospective Payment System(OPPS) Medicare's payment system for hospital outpatient services. ](/terms/opps) ### More in Reimbursement · Same category [ Reimbursement 340B Drug Pricing Program(340B) Federal program providing discounted drugs to safety-net providers. ](/terms/340b)[ Reimbursement Ambulatory Payment Classification(APC) The Medicare grouping system that determines hospital outpatient payment amounts under OPPS, analogous to MS-DRGs for inpatient. ](/terms/apc)[ Reimbursement Budget Impact Model(BIM) Financial model that estimates the total cost consequences of adopting a new technology to a payer's budget over a defined horizon. ](/terms/budget-impact-model)[ Reimbursement Bundled Payment Single payment that covers all services for an episode of care. ](/terms/bundled-payment) Cited by Where this term appears across MedTech Terms. Ecosystems (1) - [Hospital Buyer & Reimbursement](/ecosystems/hospital-buyer) ## Primary references 2 sources Link health: 2 verified · last checked 2026-06-20 AMA· 1 AdvaMed· 1 1. [1 AMA CPT Resources Verified AMA · ama-assn.org ](https://www.ama-assn.org/practice-management/cpt) 2. [2 AdvaMed - Payment & Coverage Verified AdvaMed · advamed.org ](https://www.advamed.org/our-work/) Inline markers like \[1\] jump to the matching reference above. Sponsor note ### Need cybersecurity expertise on a connected-device launch? Blue Goat Cyber helps MedTech teams ship connected products that hospital security teams will actually procure. [Book a 30-minute discovery session](https://go.bluegoatcyber.com/meetings/blue-goat-cyber/discovery-session) - No obligation - Expert-led from minute one - NDA available on request MedTech Terms is a community resource sponsored by [Blue Goat Cyber](https://bluegoatcyber.com). Definitions are independent of any vendor. On this term Category Reimbursement Acronym TPT Sources 2 Updated 5/5/2026 [Compare with another term](/compare?a=tpt) Learn in 60 seconds Card Lesson Quiz Supplemental outpatient payment for new device technologies. - · Outpatient analog of NTAP. - · Highly important for ASC- and HOPD-administered procedures (structural heart, EP, ophthalmology). Remember this Watch out: A common pitfall is misunderstanding the limited duration of TPT status, which is not a permanent reimbursement mechanism. Related terms - [New Technology Add-On Payment(NTAP) ](/terms/ntap) - [Outpatient Prospective Payment System(OPPS) ](/terms/opps) - [ASC Site-of-Service Shift ](/terms/asc-shift) You may also need Auto-suggested from Reimbursement and shared keywords. - [Ambulatory Payment Classification(APC) ](/terms/apc) - [Category III CPT Code ](/terms/category-iii-cpt) - [Site-Neutral Payment ](/terms/site-neutral-payment) - [Transitional Coverage for Emerging Technologies(TCET) ](/terms/tcet) - [Budget Impact Model(BIM) ](/terms/budget-impact-model) - [Category III CPT Codes ](/terms/category-iii-codes) [All Reimbursement terms](/terms?cat=Reimbursement) MedTech Terms An authoritative, plain-language reference for the regulatory, quality, cybersecurity, and software terms that shape modern medical devices. 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