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How Medicare Work RVU Changes Affect Physician Compensation

In 2021, CMS implemented its changes to work relative value units (RVUs), which have implications for the fair market value of productivity-based compensation (see story, p. 1),[1] said Anna Brewer, a partner of JTaylor in Texas. The value of work RVUs dramatically increased for office and outpatient evaluation and management services (CPT codes 99203-99205 and 99212-99215), while Medicare reimbursement will decline for some specialties, such as hospital-based physicians. The charts below show the effect of the work RVU and conversion factor changes on two types of physicians and the changes in work RVUs for some office/outpatient codes, according to Brewer. Contact her at abrewer@jtaylor.com.

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