The Medicare Physician
Fee Schedule payment rates formula shows how a payment rate is calculated for a
physician for her/his service. The sum of the three RVU’s (the physician work, practice
expense (PE), and malpractice (MP) insurance) is multiplied to the conversion
factor to get the Medicare PFS payment.
Moreover, these RVU’s is adjusted for
differences across geographic areas in the input prices related to each
component.
