decisionhealth Newsletters, Coder Pink Sheets - 2025 Issue 11 (November)
Getting paid: Non-facility setting favored in practice expense RVU revamp
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Article Overview
This premium article covers CMS’s 2026 Medicare physician fee schedule final-rule changes affecting practice expense RVU methodology and site-of-service payment differences. It summarizes the policy rationale, the expected impact on office-based and facility-based specialties, and the range of stakeholder reactions to the revision. It is relevant for physicians, practice managers, coders, and reimbursement professionals tracking how the fee schedule may affect payment by place of service.
Why This Topic Matters
Site of service can materially change physician reimbursement, so understanding the 2026 PE RVU restructuring helps practices anticipate payment shifts and assess financial impact across office and facility settings.
Article Sections
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CMS final rule overview
Introduces the 2026 Medicare physician fee schedule changes and the broader shift in how practice expense is allocated across settings.
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Background on practice expense methodology
Explains the historical basis for indirect practice expense allocation and why CMS says current practice patterns prompted a review.
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Facility and non-facility payment structure
Describes the general components of physician payment in facility and non-facility settings and how site of service affects the fee calculation framework.
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Where to find the expected impact
Points readers to the table in the final rule that summarizes projected payment effects by specialty and site of service.
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RVU changes net mixed reviews
Summarizes stakeholder reactions to the final rule and CMS’s response regarding assumptions about indirect practice costs.
What You Will Learn
- How CMS is changing practice expense RVU methodology in the 2026 physician fee schedule
- Why place of service affects physician payment under the updated framework
- Which broad specialty groups are expected to see differing impacts by setting
- How CMS characterized stakeholder feedback on the proposed changes
- Where the final rule summarizes projected payment effects
Who Should Read This
- Physicians
- Medical practice managers
- Coding and reimbursement staff
- Healthcare finance teams
- Revenue cycle professionals
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