Fee schedule has the direct impact on physician’s payment, it will calculate based on three factors.
1) RBRVS
2) Geographical practice cost index
3) Monetary conversion factor
Let’s see in detail about RBRVS
Its used by Medicare and almost all the public and private payers
RBRVS calculated based on three factors
1) Physician work accounts 52%
2) Practice expense 44%
3) Malpractice expense 4%
RBRV = (Total Work)(1+RPC)(1+AST)
RBRV + Total work *Specialty Practice cost index*Specialized Training Cost Index.
Total Work = Time×(Complexity Index)
Complexity index = “sweat factor”
Includes Pre- + Intra- + Post-service work
Based on surveys of physicians
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