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Health Care Economics: A Study Guide for Neuroradiology Fellows, Part 2

S.L. Weiner, R. Tu, R. Javan and M.R. Taheri
American Journal of Neuroradiology October 2017, DOI: https://doi.org/10.3174/ajnr.A5382
S.L. Weiner
aFrom the Neuroradiology Section, Department of Radiology, George Washington University Hospital, Washington, DC.
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R. Tu
aFrom the Neuroradiology Section, Department of Radiology, George Washington University Hospital, Washington, DC.
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R. Javan
aFrom the Neuroradiology Section, Department of Radiology, George Washington University Hospital, Washington, DC.
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M.R. Taheri
aFrom the Neuroradiology Section, Department of Radiology, George Washington University Hospital, Washington, DC.
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    FIGURE.

    Overview of the CPT code development process. MPFS indicates Medicare Physician Fee Schedule; QHP, qualified healthcare professionals.

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    Table 1:

    Physician payment calculation for a brain MR imaging without dye in the Washington, DC area

    Payment Calculation
    Total RVU = (1.48 × 1.048) + (4.95 × 1.205) + (0.09 × 1.271)
    Total RVU = 1.55 + 5.96 + 0.11 = 7.62
    Payment = 7.62 × $35.8887
    Total = $273.47
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    Table 2:

    Quality Payment Program—basic breakdown of MACRA

    MIPSAAPM
    DefinitionMerit-Based Incentive Payment SystemAdvanced Alternative Payment Model
    Payment adjustment componentsQuality (replaces PQRS)Quality measures like MIPS
    Advancing care information required (eg, use of EMR)
    Implementing CPIAs is requiredOtherwise, varies on the basis of APM model (eg, BPCI, Next Generation Accountable Care Organization Model, and so forth)
    Measures of cost
    Basic inclusion requirementsFail to meet the 3 requirements to be in an AAPM (see cell to the right)Use of approved EMR
    Base reimbursement on quality measures like MIPS
    Required to bear “more than nominal” financial risk
    Benefits/penaltiesUpward or downward adjustment of 4%, based on performance measured in 2017QPs not subject to budget-neutral payment/adjustment
    Percentage adjustment increases each year, reaching a maximum of ±9% in 2022Automatic 5% bonus payment based on aggregate Medicare Part B payments during the first 6 years
    Increase in fee schedule conversion factor used to calculate Medicare Part B payments of 0.25% per yearBeginning in 2026, 3-fold increase for QPs in their fee schedule conversion factor used to calculate Medicare Part B payment of 0.75% per year for QPs
    Effective date (begins impacting physicians' Medicare Part B reimbursements)20192019
    • Note:—AAPM indicates Advanced Alternate Payment Model; BPCI, Bundled Payments for Care Improvement Initiative; EMR, electronic medical record; CPIA, Clinical Practice Improvement Activities; QP, Qualifying Participant.

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S.L. Weiner, R. Tu, R. Javan, M.R. Taheri
Health Care Economics: A Study Guide for Neuroradiology Fellows, Part 2
American Journal of Neuroradiology Oct 2017, DOI: 10.3174/ajnr.A5382

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Health Care Economics: A Study Guide for Neuroradiology Fellows, Part 2
S.L. Weiner, R. Tu, R. Javan, M.R. Taheri
American Journal of Neuroradiology Oct 2017, DOI: 10.3174/ajnr.A5382
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