RVU Changes

And yes, there will be changes in valuation of RVUs. 2012 Practice expense RVUs are in thethird of a four-year transition. Work RVUs are in the fourth of an every-five year review andsome adjustments could be applied here as well.

The application of a budget neutrality adjustment may also affect RVUs. Budget neutralitytypically requires that expenditures not increase or decrease as a result of changes or revisionsto policy. However, adjustments are required only if the change in expenditures resulting fromthe annual revisions to the PFS exceeds a threshold amount. Specifically, adjustments in RVUsfor a year may not cause total PFS payments to differ by more than $20 million from what theywould have been if the adjustments were not made.

Also affecting fee calculations is the proposal to revise practice expense GPCIs (GeographicPractice Cost Indices) for CY 2012, as well as lowering the physician work cost share weightfrom 52.466 to 48.266 and increasing the practice expense weight from 43.669 to 47.439.

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