CMS Releases 2010 Medicare Physician Fee Schedule Final Rule

• Effective Jan.1, 2010, the conversion factor for the MPFS will be approximately $28.42. This is a 21.2 percent decrease from the current 2009 conversion factor of $36.066. Medicare must run the SGR formula and implement this cut unless Congress overrides this mandate.
• CMS finalized its proposal to remove drugs from the calculation of allowed and actual expenditures used in the SGR formula.
•  For 2010, the combined impact is -5 percent for radiology, -1 percent for radiation oncology, -3 percent for interventional radiology, and -18 percent for nuclear medicine as a result of changes to the physician work, practice expense and malpractice values. These impacts assume Congress will act to override the cut in the conversion factor.
• For the fully implemented (last year of the 4-year transition, the combined impact is -16 percent for radiology, -5 percent for radiation oncology, -10 percent for interventional radiology, and -23 percent for nuclear medicine as a result of changes to the physician work, practice expense and malpractice values.
• CMS finalized its proposal to use the PPI survey data.  CMS will phase it in over a 4 year period from the current practice expense RVUs to the practice expense RVUs developed using the new PPI survey data. 
• CMS finalized its proposal to increase the equipment use rate from 50 to 90 percent for diagnostic equipment priced at more than $1 million (CT and MR, but therapeutic equipment excluded). The changes will be phased in over a 4year period. 
• CMS finalized its proposal on a clarification on one aspect of the physician stand in the shoes provision.

The ACR is currently reviewing the 2010 MFS final rule and will keep the membership updated with a more detailed summary later this week. Please contact the Economics and Health Policy Department at 800-227-5463, ext. 4587 with any questions.

Click here to read the 2010 MFS final rule in its entirety.