CMS inks 2.83% physician pay cut: 5 things to know

Becker's Healthcare November 4, 2024
Patsy Newitt

CMS finalized a 2.83% physician pay cut in its 2025 Medicare Hospital Outpatient Prospective Payment System and Ambulatory Surgical Center Payment System released on Nov. 1.

Here are five things to know:

1. The physician fee schedule conversion factor for 2025 is $32.35, down from $33.29 in 2024.

2. Updated reimbursement increases are based on a projected hospital market basket percentage increase of 3.4%, and then a 0.5 percentage point productivity adjustment. The final rule is 0.3% up from the proposed rule.

3. The move follows a trend of declining physician pay. CMS cut overall physician pay by 1.25% for 2024, and, overall, physician reimbursement amounts per Medicare patient decreased around 2.3% between 2005 and 2021 when accounting for...

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