CMS finalizes fee disparity between facility and non-facility, sets two conversion factors

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article reviews finalized 2026 Medicare physician fee schedule changes, including the new two-tier conversion factor structure, site-of-service payment differences, and revisions to RVU inputs that affect fee calculation. It also summarizes related Quality Payment Program and Medicare Shared Savings Program updates, along with examples of how selected services are projected to change across facility and non-facility settings. The piece is aimed at physicians, coders, billers, and practice managers tracking Medicare payment policy for the upcoming year.

Why This Topic Matters

The final rule affects how Medicare payment amounts are set for many services in 2026 and highlights meaningful differences between facility and non-facility reimbursement. It also includes policy changes that may affect participation, reporting, and planning under QPP and MSSP.

Article Sections

  1. New in 2026: 2 conversion factors

    Overview of the finalized 2026 Medicare conversion factor structure and the broad annual changes affecting physician and anesthesia payment rates.

  2. But watch the RVU inputs

    Discussion of broader RVU-related adjustments, including site-of-service effects and the efficiency-related changes that influence payment projections by specialty and setting.

  3. QPP, Shared Savings changes mostly intact from proposed

    Summary of finalized Medicare quality and shared savings policy updates, including program structure, eligibility, reporting, and measure-set changes.

  4. Impact on CY 2026 payment for selected procedures

    Illustrative payment impact table for selected procedures and services across facility and non-facility settings for 2025 and 2026.

What You Will Learn

  • How the 2026 Medicare physician fee schedule is structured at a high level
  • Which broad policy areas were finalized in the 2026 rule
  • How site-of-service differences affect payment projections
  • What kinds of QPP and Shared Savings Program updates were included
  • How selected services are presented for year-to-year payment comparison

Who Should Read This

  • Physicians
  • Medical coders
  • Medical billers
  • Practice managers
  • Revenue cycle staff
  • Healthcare administrators
  • Compliance teams

Codes Discussed

Modifiers Discussed


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