What does the Physician Fee Schedule (PFS) refer to?

The Physician Fee Schedule (PFS) refers to a comprehensive schedule published by the Centers for Medicare & Medicaid Services (CMS) annually. This schedule outlines the payment amounts for various medical services and procedures provided by physicians and certain other healthcare providers. It incorporates Relative Value Units (RVUs), which account for the resources and practice costs associated with delivering care, and translates these into specific payment amounts for each service.

The importance of the PFS lies in its role in determining reimbursement for Medicare services, which in turn impacts how other insurers approach billing and payments. By providing this annual publication, CMS offers transparency and a structured guide for providers to understand how their services will be compensated, contributing to financial planning and operational efficiency in healthcare practices.