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Health systems face a 2.31% conversion factor cut for most clinicians, while ACOs get a higher BASIC track sharing rate and the option to waive patient cost sharing.
The Centers for Medicare & Medicaid Services (CMS) finalized a 2.31% cut to the Medicare physician fee schedule conversion factor for most clinicians in 2027, a deeper reduction than it proposed in July, while raising a key shared savings rate and adding incentives for accountable care organizations (ACOs).
The final rule, released Nov. 4, sets the rates Medicare pays for physician services, including those billed by hospitals and health systems for their employed physicians, starting Jan. 1.
CMS also issued its final 2027 outpatient payment rule the same day.
For clinicians who don’t qualify through an advanced alternative payment model (APM), the conversion factor drops from $33.40 to $32.63, according to the CMS fact sheet.
For qualifying APM participants, it falls 1.83%, from $33.57 to $32.95. The July proposal had projected cuts of 1.68% and 1.19%.