This teleconference addresses the difficult task of determining how to categorize supply items and devices in the chargemaster. Due consideration is given to the shifting stance and guidance provided by CMS over the past several years. Particular attention is given to ambulatory payment classification (APCs) and associated coding concepts of ‘not reporting separately’ and ‘not to be billed separately’. Categorization of supply items, including drugs, is a difficult issue for hospital chargemaster personnel. Also, the use of tiered pricing relative to supplies has led to charge compression and the need for CMS to modify the cost reporting process. Additionally, the changes that CMS is making to the cost report relative to devices and device definitions lends additional confusion to a difficult topic.