The primary care reimbursement mess

26 Nov
2007

I love this article, but then I am biased because I consider John Goodson a friend and colleague. Several other have linked to this article already – Unintended Consequences of Resource-Based Relative Value Scale Reimbursement

The American Medical Association (AMA) sponsors the resource-based relative value scale update committee (RUC) both as an exercise of “its First Amendment rights to petition the Federal Government” and for “monitoring economic trends . . . related to the CPT [Current Procedures and Terminology] development process.”17 Functionally, the RUC is the primary advisor to CMS for all work RVU decisions.

The RUC has 30 members (the chair only votes in case of a tie) with 23 of its members appointed by “national medical specialty societies.”17 Meetings are closed to outside observation except by invitation of the chair. Only 3 of the seats rotate on a 2-year basis. Other members have no term limits. Seventeen of the permanent seats on the RUC are assigned to a variety of AMA-recognized specialty societies including those that account for a very small portion of all professional Medicare billing, such as neurosurgery, plastic surgery, pathology, and otolaryngology. Proceedings are proprietary and therefore are not publicly available for review. Traditionally, more than 90% of the RUC’s recommendations are accepted and enacted by CMS (http://www.ama-assn.org/ama1/pub/upload/mm/380/rvs_booklet_07.pdf). As the catalog of billing opportunities expands, the total number and, importantly, the type of RVUs delivered each year have increased. From 1992 to 2002, the number of evaluation and management services as measured by RVUs increased 18% while the number of nonmajor procedures increased 21%, and the number of imaging services increased 70%.18 The resource-based relative value scale system “defies gravity”19 with the upward movement of nearly all codes. In 2006, based on RUC recommendations, CMS increased RVUs for 227 services and decreased them for 26.

The story of the RUC often reminds me of conspiracy theories. They (we never really know who they are) determine the fate of the world (or at least the economy). The RUC has disproportionate power and has apparently taken a reasonable idea (RBRVS) and corrupted it. If you want to know who to really blame, it is the RUC. I blame the AMA for developing a committee which does not represent the interest of overall health care, but rather the interests of subspecialties.

If you have access, please read John’s commentary. I have discussed this issue with John in the past, and he has taken the effort to really understand how the RUC impaired our reimbursement system.

Now I do not believe that this is a conscious destruction, nonetheless, I do believe that the RUC has done more to negatively impact outpatient continuity, chronic care than any single entity.

For another excellent commentary on this issue – The pathophysiology of primary care dwindels.

This issue deserves more attention. We must expose this problem and make it reach the national conscious. I fear that it is important but a bit obtuse. I cannot imagine a sound bite approach to the evil the RUC has wrought.

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Related posts:

  1. Primary care payment – is win-win possible?
  2. Improved performance – P4P or consistent primary care?
  3. Finding enough primary care
  4. Why health care reform should focus on primary care
  5. Thoughts on health care costs

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8 Responses to The primary care reimbursement mess

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Roy M. Poses MD

November 27th, 2007 at 4:31 pm

Bravo for daring to talk about this topic.

I am pasting below relevant comments that I also posted to the Covert Rationing Blog.

See these posts on Health Care Renewal and the articles to which they link:
http://hcrenewal.blogspot.com/2007/05/more-on-disparities-between.html
http://hcrenewal.blogspot.com/2007/03/on-disparities-between-reimbursement-of.html

Also see this post on Retired Doc’s Thoughts blog and the articles to which it links:
http://mdredux.blogspot.com/2007/11/pathophysiology-of-primary-care.html

It looks like how the RUC has operated is mainly responsible for the poor and declining reimbursement for primary care and cognitive services.

As I said in a comment on the latter post above:
It seems very clear that 1) Medicare controls physician reimbursement for Medicare patients, and indirectly strongly influences all physician reimbursement, since managed care organizations and insurers tend to just go along. 2) The Medicare reimbursement rates in turn are heavily influenced by the RUC. CMS does not seem to get any other input on updating the RBRVS system. 3) The RUC is dominated by sub-specialist proceduralists. 4) The RUC seems to make no effort to get input from physicians in the trenches. As best as I can tell, the actual membership of the RUC is not published, although it is possible to figure who most of the members are.

This appears to be a terrible, unfair system, and the RUC appears to be one of the missing links that explain why US health care is such a mess.

Avatar

Brian Stephens MD

November 29th, 2007 at 9:27 am

I second Dr Poses comments. Really appreciate you opening this up. I continue think everyday why I still give money to the AMA. To be honest, I may stop and just stick with the AAFP. At least they provide me with tons of resources and and they truly understand the importance of primary care. When I hear how the AMA makes money off the debacle known as CPT coding it just makes me upset. The AMA has lost touch with it’s old grassroots ideals and now are simply an ivory tower.

I would gladly take a pay cut if someone would just simplify the whole stupid system.

(sigh) glad to have that little rant off my chest. :) I feel better….LOL

Avatar

Ashok V. Daftary, MD

December 6th, 2007 at 7:58 pm

Goodson has described very clearly the negaive effect of the RUC and its specialist dominated work -force on the health of primary care and this nation.
Two excellent Power-point presentations can be accessed at

http://www.businessgrouphealth.org/opportunities/webinar080107ucsf.ppt

http://healthcaredisclosure.org/docs/files/BodenheimerPaymentMay2006.pdf

that further cast light on the murky operation of the RUC.

While Goodson’s commentary detailed the RUC reccomendations to CMS (ususally accepted) the presentations above will further detail the ripple effect on other payers.
The AMA must have been concerned about the legality of this committee. It did request an opinion from the FTC.

That opinion did state in 1996 “it does not appear that the proposed dissemination of information is likely to violate anti-trust law…..We have not conducted an independent investigation, and our opinion could change if the facts change significantly”
http://www.ftc.gov/bc/adops/ama.shtm

The facts speak for themselves and the decisions of the committee have proved that grounds for reevaluation including another complaint to the FTC may be necessary.

Recent opinions of William Plested the President of the AMA decrying pay-for -performance and other health care reforms is but another example of the mood of the AMA.

The CPT is a proprietary document of this organization. Aside from being a considerable revenue stream for the AMA it is also a mechanism that furthers its strangle -hold over Primary Care.

It is unlikely that with the considerable lobbying power that the AMA posseeses that correstive legislation is likely. the only solution may be litigation.
Failing that statements of mine published in The Annals of Internal Medicine may be prophetic and appropriate

“Medical subspecialties that are nurtured in the ivory towers of academia have further reduced the stature of the internist. Effective lobbying by their affiliated societies and by commercial manufacturers of the medical devices they use assured them disproportionately higher reimbursement than that of their generalist colleagues. Absent an identity, the internist’s only remaining role is thought to be that of provider of ambulatory care to the chronically ill whose medical problems are beyond procedural intervention and lucrative compensation.
A continuing decline in professional stature and income, when coupled with deteriorating working conditions, makes the continued existence of internal medicine untenable. I am pessimistic that current political and professional interests will allow significant change to resuscitate internal medicine. Would it then not be opportune to draft an obituary for internal medicine and commission a requiem to its memory? ” (http://www.annals.org/cgi/content/full/144/9/702-a)

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HealthBlawg

January 9th, 2008 at 7:23 pm

Minute Clinic regs approved in Massachusetts…

After tabling the issue last month, the Massachusetts Public Health Council finally approved the long-awaited limited service clinic licensure regulations, aka the Minute Clinic regs, today. These regs now set the stage for CVS to open a couple dozen M…

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December 12th, 2008 at 8:30 am

[...] adopted RBRVS.  But then they made a huge mistake.  They let the AMA develop the RUC – The primary care reimbursement mess.  The members of that secret society include very few primary care physicians and many [...]

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March 8th, 2009 at 4:06 am

[...] with my other blog at MedPage Today) Over at DB’s Medical Rants, rcentor comments on the machination of the RUC, also known as the “RBRVS Update [...]

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Ranting on the RUC | Diario BV

June 2nd, 2009 at 3:35 am

[...] with my other blog at MedPage Today) Over at DB’s Medical Rants, rcentor comments on the machination of the RUC, also known as the “RBRVS Update [...]

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March 1st, 2010 at 9:59 am

[...] services and publishes the book that sets these ratios.  It is widely believed that the RUC is overrepresented by subspecialists which has led to undervalue of primary care services.  More recent concerns [...]

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