CMS Releases the 2011 Anesthesia Conversion Factor
The anesthesia conversion factor and the general conversion factor were modified as a result of changes to the Medicare Economic Index (MEI) as outlined in the 2011 final Medicare physician fee schedule database and as result of adjustments required by the Affordable Care Act.
These modifications resulted in a decreased general conversion factor, increased practice expense RVU, increased malpractice RVUs, and lower work values for chronic pain services and critical care services that will result in decreases to fees for many of these services. The negative impact of these decreases for pain practices and critical care services is about 8%.
Effects on the Anesthesia Conversion The anesthesia conversion factors for all localities (except Miami, Florida – which will remain the same and Queens, NY locality – which actually increased by 12 cents) have decreased slightly from 2010 to 2011. The average decrease in anesthesia conversion factors for those localities with decreases is approximately $0.54.
What does this mean for your anesthesia practice? Although, the big 25% Medicare fee schedule reduction was averted, calendar year 2011 will bring lower Medicare payments for anesthesia services as well as chronic pain care services. Due to the Patient Protection and Affordable Care Act and the Medical Economic Index, you will experience a minor decrease in the anesthesia conversion factor that will result in small reductions in reimbursement, but nowhere near the magnitude of what was expected earlier last year.
Average Physician Compensation Increase Was 3.8% in 2009: AMGA Survey
Most specialties saw modest increases in compensation in 2009, but many provider organizations continue to operate at a significant loss, according to findings in the American Medical Group Association’s (AMGA’s) 2010 Medical Group Compensation and Financial Survey. The survey found that 76% of the specialties experienced increases in compensation in 2009, with the overall average increase around 3.8% (in 2008, when 81% experienced an average increase around 3.5%). The primary care specialties (excluding hospitalists) saw about a 3.8% increase in 2009 (same in 2008), while other medical specialties averaged an increase of 2.4% and surgical specialties averaged around 3.8%. The primary care specialties saw about a 3.8% increase in 2008, while other medical and surgical specialties averaged 6%. The survey reports that during 2009, the specialties experiencing the largest increases in compensation were pulmonary disease (10.37%), dermatology (7%), and urology (6.36%).
The section of the survey that examines financial operations found that medical groups were still faced with significant financial challenges. Most regions were doing better than in 2008, but margins are thin. In 2009, organizations in the Eastern and Western regions were operating at break even. Organizations in the Southern region continue to operate at a loss (-$1,034 per physician in 2009, -$120 per physician in 2008). Groups in the Northern region continued to experience significant losses (-$9,943 per physician in 2009, -$3,254 per physician in 2008).
