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Gastroenterology Coding Alert

Reader Question:

Geography Affects Your Payments

Published on Mon Nov 16, 2009

Question: My physician has asked me to explain how to figure out what our reimbursement will be based on the RVUs a payer assigns to a code. He wants to know why we're getting paid differently than his colleague in another state. Can you help? Kansas Subscriber Answer: Many insurers adopt in some form Medicare's resource-based relative value scale, which assigns codes relative value units (RVUs) based on the service's work and required resources. Each code consists of RVUs that represent service work, practice expense, and professional liability. These values depend on the service's location -- nonfacility or facility. Do the math: To calculate how much a particular code pays nationally based on the Medicare Physician Fee Schedule (MPFS), you multiply the total location-specific RVUs for the code by Medicare's conversion factor (CF). The 2009 CF is 36.0666. Example: For 2009, the MPFS assigns level-three established patient visit code 99213 1.70 [...]
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