Decoding the Medicare Physician Fee Schedule and the Annual Conversion Factor
Every year the Medicare Physician Fee Schedule resets what you are paid. RVUs, the conversion factor, and how to protect your practice from cuts.
The Medicare Physician Fee Schedule (MPFS) sets payment for thousands of services and is updated annually — often with downward pressure on the conversion factor. Because commercial contracts frequently reference Medicare rates, MPFS changes ripple across your whole book.
How payment is built
- Relative Value Units (RVUs): work, practice expense, malpractice
- Geographic adjustment (GPCI)
- The annual conversion factor that turns RVUs into dollars
Protect your margin
Model the impact of each year’s final rule on your top codes, renegotiate commercial contracts that auto-track Medicare, and tighten coding so you capture the RVUs you earn.
How Aethera helps
Aethera models annual fee-schedule changes against your code mix and flags contracts that quietly absorb Medicare cuts.
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