decisionhealth Newsletters, Part B News - 2010 Issue 7 (July)
4 new RVU changes would shift pay toward higher-expense specialties
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Article Overview
This article explains several proposed 2011 Medicare Physician Fee Schedule adjustments that would influence how physician payments are calculated. It is intended for coders, billing staff, physicians, and practice managers who need a high-level understanding of the policy changes, the payment methodology updates being discussed, and the specialties most likely to be affected.
Why This Topic Matters
The proposed changes could alter Medicare reimbursement across specialties by changing the inputs used to calculate payment. Understanding the scope of these updates helps readers assess potential financial impact and track policy changes that may affect practice expense, imaging, surgery, evaluation and management, and other service categories.
Article Sections
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Overview of proposed payment changes
Introduces the Medicare payment methodology changes discussed in the article and explains that multiple factors may affect payment calculations at the same time.
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RVU change: transition to a new practice expense dataset
Describes the continuing transition to a new survey-based dataset used in relative value unit calculations and notes that the effects vary by service category.
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RVU change: rebasing the Medicare economic index
Summarizes a proposed change to the Medicare economic index and its broad effect on the components that drive payment calculations, including its relevance to higher-expense specialties.
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GPCI change: new methodology for practice expense indices
Covers the proposed update to the methodology used for practice expense geographic practice cost indexes, including the move to newer wage data sources and a phased implementation.
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GPCI change: equalizing national and local comparisons
Explains the additional geographic practice cost index adjustment proposed to align local and national data more closely under health reform requirements.
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Net impact and related physician fee schedule adjustments
Notes that other proposed fee schedule rules may offset some of the payment effects and points readers to specialty-level tables in the referenced charts.
What You Will Learn
- How proposed fee schedule changes can affect Medicare payment calculations
- The broad role of RVUs and GPCIs in physician reimbursement
- Which general specialty groups may be more affected by the proposed changes
- How the article frames the relationship between new methodology updates and offsetting fee schedule rules
Who Should Read This
- Medical coders
- Billing staff
- Physicians
- Practice managers
- Revenue cycle professionals
- Healthcare administrators
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