Practice expense RVUs phased in over four years

Rather than hit all the practices in the country at once with a dramatic change in their Medicare physician fee schedules, Congress has directed that the new practice expense formula be phased in over a four-year period.

Here's how the changes would occur:

· 1999: The practice expense RVUs are based on 75% of the practice expense RVUs applicable to services furnished in 1998 and 25% of the new relative practice expense resources involved in furnishing the service.

· 2000: The practice expense RVUs are based on 50% of the practice expense RVUs applicable to services furnished in 1998 and 50% of the new relative practice expense resources.

· 2001: The practice expense RVUs are based on 25% of the practice expense RVUs applicable to services furnished in 1998 and 75% of the new practice expense RVU.

· 2002 and subsequent years: The practice expense RVUs are based entirely on relative practice expense resources.