ABSTRACT

In some other cases, the influence of charges is relatively indirect. For example, the Medicare Physician Fee Schedule (MPFS) is based on a relative value scale that uses resource utilization as the determining factor for developing relative values and thus payment. So, at least in theory, physician charges have little to do with payments under the MPFS. However, there are other fee schedules that utilize the usual, customary, and reasonable (UCR)* charges to develop payments, particularly for physicians. In these cases, there is a more direct relationship between charges and healthcare payment.