Practice Management Alert

Question: I-ve been hearing disturbing news that CMS may cut the fee schedule reimbursement by more than 10 percent in 2008. Is this really true?

Oregon Subscriber

Answer: Unfortunately, unless Congress steps in, practices could face an overwhelming 10.1 percent pay cut in 2008. That's even more than the 9.9 percent cut you were bracing for. Just imagine calculating all of your payments with the 2008 relative value units (RVUs) and a conversion factor of 34.0682. That's the reality you-ll face in January unless Congress acts soon.

Although Congress has stepped in in recent years to prevent such large cuts to physician Medicare payments, experts lament that this year might be the year you-ll be forced to find other ways to ensure practice income compliantly.

Pointer: Experts suggest that one way to help your practice overcome the steep cut is to ensure you-ve mastered the Physician Quality Reporting Initiative (PQRI). See the article "Weed Through the PQRI Confusion With These Expert Tips" in Medical Office Billing & Collections Alert, Vol. 7, No. 6.

Some good news: If you bill for an anesthesiologist, you-ll see a massive pay hike next year. CMS decided to increase the work value of almost all anesthesia services by 32 percent reflected in their RVUs.