Single Conversion Factor

The 2007 Medicare Physician Payment Schedule increased the relative value units, or RVUs, for many services provided by family physicians. The AAFP has learned from its members that some payers have adopted the RVU increase, but have also altered their conversion factors to, in effect, neutralize any actual increase in payment. In addition, some payers use different conversion factors for evaluation and management (E/M) services than they do for other services.

AAFP believes that payment for services should be established according to an Resource-Based Relative Value Scale (RBRVS), which takes into account the unique practice expenses and professional liability costs of primary care physicians and uses a single conversion factor for all physician services. Read the full policy on physician payment.