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Friday Compliance Briefing: Significant Changes in 2003 Reimbursement

Editor's Welcome

This week we will continue to analyze the economic effects of the 2003 Medicare Physician Fee Schedule (MPFS). Although Medicare reduced the fee schedule amounts for a majority of procedures, some fee schedule amounts are significantly higher. Read on for more information. As always feel free to contact us with suggestions and/or questions.

Sincerely,

Charles B. Root, Ph.D.

Economic Consequences of 2003 MPFS

As we discussed in the Jan. 10 newsletter, the 2003 MPFS was reduced an average of 4.4% from 2002 levels. However, Medicare reimbursement for some individual procedures actually increased because of changes in the relative value units (RVUs) used to calculate the new fees. Remember the MPFS is different from the Medicare Laboratory Fee Schedule which actually contains across the board increases for 2003. 

Physician fees are calculated by:

  1. multiplying local cost factors by the RVUs for physician work, pract....

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