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How Will the 2023 MPFS Affect Your Practice?

Lauren M. Foe, MPH

January 9, 2023

New payment policy, coding, and reimbursement changes set forth in the calendar year (CY) 2023 Medicare Physician Fee Schedule (MPFS) final rule took effect January 1. The MPFS, which the Centers for Medicare & Medicaid Services (CMS) updates annually, lists payment rates for Medicare Part B services and introduces or modifies other policies and regulations that affect physician reimbursement and quality measurement.

The ACS submitted comments September 6, 2022, in response to the CY 2023 MPFS proposed rule issued by CMS earlier in the year.* Some provisions in the final rule, released November 1, 2022, incorporate the College’s recommendations. Although the final rule includes important payment and policy decisions that affect all physicians, this article focuses on updates that are particularly relevant to general surgery and its related specialties.

Table 1: Definition of Substantive Portion for E/M Visit Code Families

E/M Visit Code Family

2023 Definition of Substantive Portion

2024 Definition of Substantive Portion

Other outpatient*

History, or exam, or MDM, or more than half of total time
More than half of total time

Inpatient/observation/hospital/nursing facility

History, or exam, or MDM, or more than half of total time
More than half of total time

Emergency department

History, or exam, or MDM, or more than half of total time
More than half of total time

Critical care

More than half of total time
More than half of total time

*Office visits will not be billable as split (or shared) services.

E/M Services

After revising the office and outpatient evaluation and management (E/M) code sets in CY 2021, CMS finalized refinements to coding and documentation requirements for hospital inpatient, observation, and some other E/M visits for 2023 to align with the 2021 changes. A discussion of these coding changes can be found in an October 2022 Bulletin article entitled “What Surgeons Should Know: 2023 Changes to Reporting Inpatient and Observation Evaluation and Management Services.”

Split (or Shared) Services

CMS previously finalized changes to its policies for split (or shared) E/M visits. Such changes, applicable to a facility-based visit by a physician furnished in conjunction with a nonphysician practitioner (NPP) and originally set to begin January 1, 2023, allowed the practitioner—either the physician or NPP—who provided the “substantive portion” of the visit to bill for the services furnished. As part of this policy, a substantive portion was to be defined by comparing the time spent by each clinician and determining who spent more time with the patient. CMS will delay implementation of this policy until 2024, and in 2023, providers who furnish split/shared visits will continue to select the billing practitioner either by (a) who provided the history, physical exam, or medical decision-making (MDM); or (b) who spent more than half of the total time on the service. 

In 2024, unless CMS revisits the policy, the substantive portion will be defined as more than half of the total time that the physician and NPP spent performing the split (or shared) visit (see Table 1). The substantive portion may include time spent with or without direct patient contact.

Telehealth Services

In accordance with the Consolidated Appropriations Act, 2022 (CAA), CMS will allow certain services added during COVID-19 to the Medicare telehealth covered services list to remain on the list for 151 days after the expiration of the public health emergency (PHE). The CAA also enacted additional flexibilities for the 151-day post-PHE period and expanded the scope of telehealth originating sites to include any site in the US where the beneficiary is located at the time of the telehealth service, including an individual’s home. 

Colorectal Cancer Screening Services

To broaden access to colorectal cancer (CRC) screening, CMS modified coverage and payment limitations of certain CRC screening tests to begin at age 45 instead of 50. The regulatory definition of CRC tests also was expanded to include follow-up screening colonoscopies after a Medicare-covered non-invasive, stool-based CRC screening test returns a positive result. Such tests include guaiac fecal occult blood tests, immunoassay fecal occult blood tests, and Cologuard™ Multitarget Stool DNA tests. CMS will pay for follow-up colonoscopies as screening tests—rather than diagnostic tests, for which patients would be billed—thereby eliminating coinsurance and deductibles for these services and reducing out-of-pocket costs for Medicare beneficiaries.

Table 2: Calculation of the 2023 MPFS Conversion Factor

CY 2022 Conversion Factor

$34.6062

Conversion Factor without CY 2022 Protecting Medicare and American Farmers from Sequester Cuts Act

$33.5983
Statutory Update Factor
0.00%
CY 2023 RVU Budget Neutrality Adjustment
-1.60%

CY 2023 Conversion Factor

$33.0607

Conversion Factor

Absent Congressional intervention, the 2023 MPFS conversion factor (CF)—which is the amount Medicare pays per relative value unit—is $33.0607, an approximate 4.5% decrease from last year’s CF of $34.6062. This decrease reflects the expiration of a one-time 3% cut avoidance that Congress provided for the CY 2022 MPFS CF and an additional 1.6% reduction due to 2023 budget neutrality requirements (see Table 2).


Lauren Foe is the Senior Associate for Regulatory Affairs in the ACS Division of Advocacy and Health Policy in Washington, DC.


*American College of Surgeons. CY 2022 Medicare Physician Fee Schedule Comment Letter. Available at: https://www.facs.org/media/5vldhdae/acs-cy-2023-mpfs-comment-letter.pdf. Accessed November 28, 2022.

†Nagle J, Romano T. What Surgeons Should Know: 2023 Changes To Reporting Inpatient And Observation Evaluation And Management Services. Bull Am Coll Surg. 2022;107(10):44-46. 

‡All specific references to CPT codes and descriptions are © 2022 American Medical Association. All rights reserved. CPT is a registered trademark of the American Medical Association.