RBRVS - The politics 
This series is personal recollection. A few details may be a little off the
mark - though not enough to undermine the message.

Before the discussion of politics it is only fair to make a brief assessment
of the system. The resource based relative scale (RBRVS) has gotten a lot of
bad press because of lack of understanding and political manipulation.
Sadly the term "managed care" in this country has deteriorated into a system
"bureaucratic care", or red tape barrier to access. The dysfunctional health
care payment system in the United States is largely the result of
competitive plans presenting varying schemes of skimming a layered
percentage of expenditure for their role in "cost management."  

Many left the American Medical Association (AMA) Interim meeting in December
1989 with the feeling that, with the AMA endorsement of RBRVS, we had a
standard by which to measure progress and time would give us a better idea
of direction. I purchased the first RBRVS diskette release and as I started
analyzing the file, I was surprised to find compensation for family
physicians had not improved as anticipated. The Bush(1)administration,
though promising "revenue neutral" transition, had removed "highly
compensated" specialists from the formula. 

This maneuver was both simple, since the Federal government had dealt with
the radiologists, pathologists, and anesthesiologists before the RBRVS was
completed, and quiet, since the media, newspapers and journalists were NOT
sensitive to and, indeed, did not understand, our plight. After adapting the
RBRVS for our schedule, we discovered another weakness. A general surgeon in
our group pointed out that Blue Cross allowed three times the RBRVS fees for
most surgery. (I recalled Dr. Hsiao's comment about 35 cents on the dollar,
and now here it was looming over billing.) We decided we could not leave
that kind of money on the table, even if the surgeon would tolerate it. We
added a modifier, for special fee adjustment, to the formula. 

The Tennessee Academy of Family Physicians adopted, and sent on to the
American Academy of Family Physicians, a resolution asking the AAFP to
promote the idea and lobby commercial carriers to convert to the RBRVS
payment scale. The expectation was a "revenue neutral" conversion, however
there was a preponderance of proceduralists in the leadership of the AAFP
whose goal was to retain the proceduralist-oriented scale and fight instead
for added privileges - family physicians doing more procedures. This setback
left an imbalanced payment system and as late as 2004 Blue Cross of
Tennessee met severe opposition when they announced plans to adopt the RBRVS
for their fee for service contracts. A clear understanding of the RBRVS and
discounting is essential to designing a practice accounts receivable and
management system. The next installment deals with adapting the RBRVS to
effective electronic accounts management.



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