tci Medicare Compliance & Reimbursement - 2005 Issue 11

Physicians: Chemotherapy Reimbursement Not Covering $144 Million Cost

If oncology practices feel short-changed, it may be for a reasonChemotherapy administration payments were nearly 50 percent less than practice expenses in oncology practices, according to study data presented by the Washington-based Moran Company. Not only that, but on average the Resource-Based Relative Value System (RBRVS) only reimburses physicians for 70 percent of the cost of treating Medicare patients, the study found. This happens because Medicare "blends" practice expenses across specialties and thus factors out specialty-specific expenses, the Moran study explained. Moran is also conducting a second study on the changes in oncology practices in 2005. The National Patient...

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