decisionhealth Newsletters, Coder Pink Sheets - 2025 Issue 9 (September)
Rules & regulations: Proposed ‘efficiency adjustment’ would cut work relative value units
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Article Overview
This Find-A-Code article reviews a CMS proposal to revise how selected physician services are valued under the Medicare Physician Fee Schedule. It focuses on the proposed efficiency adjustment, the types of services and code families it would affect or exclude, the agency’s rationale, and the reaction from the AMA. The piece is relevant to physicians, coders, compliance staff, and reimbursement professionals who track Medicare payment policy and RVU valuation updates.
Why This Topic Matters
The proposal could affect valuation for a large group of services and influence Medicare payment calculations, especially for facility-based procedures, imaging, and diagnostic testing. Readers need to understand the scope of the policy, which services are carved out, and how CMS says it plans to apply the adjustment over time.
Article Sections
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CMS proposal and rationale
Introduces the proposed valuation change and the agency’s general rationale for revisiting work RVU methodology for certain services.
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RUC process and CMS concerns
Summarizes CMS’s critique of the current survey-based review process and its concerns about timing and revaluation of services.
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Proposed efficiency adjustment methodology
Describes the alternative calculation approach CMS proposes and the general framework for applying it over a multi-year period.
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Services affected and excluded
Outlines the broad categories of services expected to be subject to the proposal and the categories CMS says would not be included.
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Implementation timing and comment period
Notes the proposed cadence for applying the adjustment and CMS’s request for public feedback.
What You Will Learn
- What CMS is proposing to change in its valuation methodology
- Which broad categories of services are targeted or excluded
- How CMS describes the review process it is moving away from
- Why the AMA objected to the proposal
- When CMS says the adjustment would be applied
Who Should Read This
- Physician coders
- Revenue cycle staff
- Compliance professionals
- Medical practice administrators
- Healthcare reimbursement analysts
- Physicians and specialists
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