decisionhealth Newsletters, Answer Books - 2009 Issue 1 (January)
Physician_Fee_Schedule_Rules / 1997
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Article Overview
This article explains the 1997 Medicare physician fee schedule final rule issued by HCFA/HHS. It reviews broad payment policy changes, updates tied to relative value units and geographic practice cost indices, and selected coverage and status changes affecting physician services. The material is aimed at readers who need to understand how the 1997 fee schedule was revised and what categories of services and code families were affected.
Why This Topic Matters
It provides the regulatory and coding context behind major Medicare physician payment updates for 1997, including changes that affect reimbursement structure, locality-based payment variation, and how certain procedure groups were classified for Medicare payment purposes.
Article Sections
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Background
Introduces the physician fee schedule framework, relevant statutory authority, and the development process for relative value units and payment policies.
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Specific Proposals for Calendar Year 1997 and Responses to Public Comments
Summarizes the major 1997 policy proposals discussed in the rule and the general response themes from public comments.
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Payment Area (Locality) and Corresponding Geographic Practice Cost Index Changes
Describes revisions to payment area structure and the accompanying geographic index updates used in Medicare physician payment calculations.
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Special Rules for the Payment of Diagnostic Tests, Including Diagnostic Radiologic Procedures
Addresses coverage and payment policy for diagnostic testing services and related ordering requirements.
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Transportation in Connection with Furnishing Diagnostic Tests
Discusses payment treatment for transportation associated with certain diagnostic equipment and related service delivery settings.
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Bundled Services
Covers service groups that are discussed for bundling or status changes under the physician fee schedule.
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Hot or Cold Packs
Reviews payment treatment and status classification for a commonly billed therapy-related service.
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Dermatology Procedures
Discusses selected dermatology service families and how their reporting or payment structure was considered for revision.
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Change in Coverage Status for Screening and Obsolete Procedures
Addresses selected procedures reviewed for noncoverage or bundled status based on screening or obsolescence considerations.
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Payments for Supervising Physicians in Teaching Settings
Explains revisions affecting supervising physicians, residency settings, and related Medicare teaching policy language.
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Change in Global Periods for Four Percutaneous Biliary Procedures
Reviews global surgery period considerations for a small group of biliary procedures and the related work value discussion.
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Refinement of Relative Value Units for Calendar Year 1997 and Responses to Public Comments on the Five-Year Review of Work Relative Value Units
Describes the 1997 work RVU refinement process, including the broader five-year review and the review methodology used for code valuation.
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Summary of the Development of Physician Work Relative Value Units
Provides background on how physician work valuation concepts and methodology were developed for the fee schedule.
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Scope of the Review
Outlines the extent of the five-year review and the process used to evaluate codes and comments.
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Discussion of Comments and Decisions
Presents grouped commentary and decisions organized by clinical specialty and administrative topic.
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Discussion of Comments by Clinical Area
Groups refinements and comment responses by specialty and clinical service category.
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Other Comments
Covers broader valuation and policy topics not limited to a single clinical specialty.
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Other Issues
Addresses additional administrative and policy matters associated with the fee schedule review.
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Refinement of Relative Value Units for Calendar Year 1997 and Responses to Public Comments on Interim Relative Value Units for 1996
Explains how interim and revised values were handled for 1997 and how comments on prior interim values were addressed.
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Provisions of the Final Rule
Summarizes the final regulatory provisions adopted in the rule.
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Collection of Information Requirements
Addresses paperwork or information collection considerations associated with the rule.
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Response to Comments
Provides the agency’s overall response framework to public input on the proposed policies.
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Regulatory Impact Analysis
Presents the administrative and economic impact analysis associated with the final rule.
What You Will Learn
- How HCFA described the 1997 Medicare physician fee schedule update
- Which broad policy areas were revised in the final rule
- How locality and geographic index changes fit into the fee schedule
- What categories of services were reviewed for bundling, coverage, or status changes
- How the five-year RVU review process was organized for 1997
- Which specialties and administrative topics were used to structure the comment response sections
Who Should Read This
- Medical coders
- Physician billing staff
- Revenue cycle professionals
- Healthcare compliance teams
- Practice administrators
- Policy analysts
Codes Discussed
Code Ranges Discussed
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