1. What is Medicare Conversion Factor?

The Medicare Conversion Factor (CF) is the dollar amount that Medicare pays per Relative Value Unit (RVU). It's used to calculate physician payments by multiplying the RVUs for a service by the conversion factor.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( CF \) — Conversion Factor ($/RVU)
• \( Payment \) — Total payment amount in dollars
• \( RVU \) — Relative Value Units

Explanation: This calculation shows how much Medicare pays per unit of RVU, which is fundamental to understanding physician reimbursement.

3. Importance of Conversion Factor

Details: The conversion factor is critical for healthcare providers to understand their reimbursement rates and for policymakers to adjust Medicare payments.

4. Using the Calculator

Tips: Enter the total payment amount in dollars and the RVU value. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is an RVU?
A: Relative Value Units measure the value of physician services considering physician work, practice expenses, and malpractice insurance.

Q2: How often does the conversion factor change?
A: Medicare updates the conversion factor annually, though mid-year changes can occur due to legislative actions.

Q3: What's a typical conversion factor value?
A: The Medicare conversion factor typically ranges between $32-$38 per RVU, varying by year and location.

Q4: Does this include all RVU components?
A: This calculator uses total RVU. For detailed analysis, you might want to separate work RVU, practice expense RVU, and malpractice RVU.

Q5: Can this be used for non-Medicare payments?
A: While designed for Medicare, the same principle applies to other payers, though their conversion factors may differ.