Medicare updates the physician fee schedule conversion factor while RVU assignments for a CPT remain unchanged. What is the financial impact?
Select an answer to reveal the explanation.
Short Explanation
Think of RVUs as the recipe quantities and the conversion factor as the price per unit. Congress or CMS can change the price tag without rewriting the recipe—so payment moves even when the CPT’s RVUs sit still. Watch CF updates; they hit across RVU-priced services.
Full Explanation
The conversion factor translates total geographically adjusted RVUs into payment dollars. When the conversion factor changes under budget-neutrality or policy updates, payment for RVU-priced physician services changes even if a given CPT’s RVU components are unchanged. Coders and revenue staff should understand CF updates as a broad financial driver distinct from revaluing individual codes’ RVUs.