The proposed 2027 Medicare fee schedule would lower the physician conversion factors
Developing
What changed
CMS proposed a 2027 Medicare Physician Fee Schedule conversion factor of $33.17 for qualifying Advanced Alternative Payment Model participants, 1.19% below 2026, and $32.84 for clinicians who are not qualifying participants, 1.68% below 2026. The proposal reflects statutory updates, proposed work-RVU changes and the expiration of a temporary 2.5% increase that applies in 2026.
This is still a proposed rule. The comment period closed September 14, and the final 2027 numbers can change.
Why it matters
A one- or two-percent reimbursement move can matter when payroll, rent, supplies and software are rising. The effect will also vary by specialty because service RVUs and other policies can move separately from the headline conversion factor.
What it means for your business
Run a few 2027 scenarios using your actual Medicare volume and highest-use codes: the proposed rates, a somewhat better final result and a worse case. Then put expected labor and occupancy costs next to them. That will show whether you have a real margin problem or mostly a scary headline.
Also check coding, denials, collection time and unused schedule capacity. Those leaks are usually more controllable than trying to make up a reimbursement cut with sheer volume.
What to watch
Watch the final CY 2027 rule and specialty-specific RVU changes. Do not change staffing or pricing based on the proposal alone.
NewsTrend status describes the development’s observed direction, not a forecast. Business implications are general operating ideas; actual results depend on your concept, market and economics.