How Medicare Work RVU Changes Affect Physician Compensation

By Nina Youngstrom

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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