decisionhealth Newsletters, Coder Pink Sheets - 2008 Issue 1 (January)
Analyze how Medicare fee changes impact your various specialties
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Article Overview
This article is for physician practices, coders, and billing staff who need to estimate the financial impact of Medicare fee schedule changes across multiple specialties. It covers a step-by-step method for comparing fee scenarios using RVUs, geographic practice cost indices, and conversion factor assumptions, along with broader factors that can affect revenue such as modifier-related policy changes and imaging payment caps. The piece is designed to help readers understand how to assess specialty-level exposure to fee schedule updates and plan budgets more effectively.
Why This Topic Matters
Medicare fee updates can materially change reimbursement across specialties and create uncertainty for practice budgeting. This article helps readers understand the structure of the analysis they need to estimate those impacts before final payment updates are known.
Article Sections
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Financial impact of Medicare fee updates
Overview of how Medicare fee schedule changes can affect specialty practices and why practices may need to model multiple payment scenarios.
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Specialties most affected by RVU reductions
Discussion of the specialty groups highlighted as facing the greatest impact from relative value changes.
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Additional revenue factors to monitor
Broad mention of other policy-related issues that can affect payment, including certain code classifications and imaging-related limits.
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The five-step formula
A structured process for estimating Medicare fee effects using practice data, fee schedule inputs, and comparison calculations.
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Medicare's 2008 fees: Key figures and calculations
Reference values and a general calculation framework for estimating locality-adjusted Medicare fees under the 2008 payment methodology.
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Resource
Source information pointing readers to Medicare fee schedule and geographic adjustment data from the CMS website.
What You Will Learn
- How to estimate the budget impact of Medicare fee schedule changes across specialties.
- How RVU changes and geographic adjustments factor into payment calculations.
- How to compare alternative conversion factor scenarios for planning purposes.
- What broad policy areas may also influence specialty revenue.
- Where to obtain Medicare fee schedule and geographic adjustment data.
Who Should Read This
- Physician practices
- Medical coders
- Billing staff
- Practice administrators
- Revenue cycle staff
Codes Discussed
Modifiers Discussed
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