Payment cuts to facility-based physician services: Tracing the ripple effects through PE RVUs - McDermott+

Payment cuts to facility-based physician services: Tracing the ripple effects through PE RVUs

Starting January 1, 2026, the Centers for Medicare & Medicaid Services (CMS) will halve the indirect practice expense per work relative value unit (RVU) applied to facility-based services under the Physician Fee Schedule – reshaping payment relativity and tilting dollars toward office-based care.

Our first +Insight on this topic covered the decision, its rationale, and the headline implications. This installment goes deeper: the data and mechanics behind the change, the evidence and assumptions CMS cited, and the alternatives stakeholders urged CMS to consider.

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additional physician fee schedule final rule coverage