DateJune 27, 2018
 
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New McDermottPlus Tool Replicates Practice Expense RVU Calculation

Medicare payment to physicians under the Medicare Physician Fee Schedule (MPFS) is based on relative value units (RVUs) representing physician work, practice expense and malpractice insurance. These RVUs are multiplied by a conversion factor and geographic adjustment factors to determine the payment rate.

Practice expenses account for a substantial portion of the overall payments made under the MPFS. For example, payments for practice expenses constituted 45 percent of total MPFS payments in 2016.

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