Part B Insider (Multispecialty) Coding Alert

Practices that furnish Part B outpatient therapy can't afford to ignore physician fee schedule payment cuts that are poised to slash therapy reimbursement.

"Changes to payments under the physician fee schedule for outpatient therapy services have a significant and direct effect on Medicare payments across the entire spectrum of the therapy delivery system," noted physical therapist R. Scott Ward, president of the American Physical Therapy Association, in a comment on the proposed rule. APTA wants CMS to withdraw the multiple procedure payment reduction (MPPR) policy component.

The policy, APTA argues, is based on incorrect assumptions and flawed methodology.

Bottom line: CMS's proposal for "drastic reductions in payment for outpatient therapy services are arbitrary and essentially across the board cuts that are likely to restrict patient access to vital outpatient therapy services," APTA contends. CMS plans to publish the final rule in early November with an effective date of Jan. 1, 2011. Keep an eye on the Insider for more on the Fee Schedule once CMS finalizes it.