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Health Care Futures Direct: 2021 Proposed Medicare Physician Fee Schedule

Health Care Futures Direct: 2021 Proposed Medicare Physician Fee Schedule –Provider Compensation Implications, September 2020

In early August, the Centers for Medicare and Medicaid Services (CMS) released the CY 2021 Medicare Physician Fee Schedule (PFS) Proposed Rule, prompting criticism from the American Medical Association and other professional membership organizations of the proposed unsustainable reduction in Medicare reimbursement for most specialist services. Health Care Futures shares this concern and believes that implementation of the proposed rule without modification could have a grave disruptive impact on healthcare provider organizations nationwide. Put simply, a critical implication of the proposed rule is that work relative value units (wRVUs) are expected to increase while reimbursement is expected to decline, leaving organizations that employ physicians to absorb even larger practice subsidies than they have historically, threatening margins and the future sustainability of physician employment arrangements.

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