CMS’ 2026 Medicare Physician Fee Schedule raised the conversion factor to $33.57 for qualifying participants, a 3.77% increase.
Buried in the same rule is a 2.5% efficiency adjustment to the work RVU values on roughly 7,700 non-time-based CPT codes, covering about 91% of physician services by billed volume. According to an analysis from Holland & Knight, CMS called it an incremental, first-in-a-series approach, even though the agency’s own data supported a steeper 3.6% cut.
The adjustment doesn’t hit every specialty equally. According to an analysis from consulting firm Buckhead FMV, urology absorbs the largest aggregate hit to wRVU production, down 2.57%, followed by invasive and interventional cardiology at -2.32% and diagnostic radiology at -2.30%. Internal medicine, hematology/oncology and hospital medicine are barely touched, down less than 0.05%. E/M office visits, behavioral health, care management, telehealth, maternity codes, time-based drug administration and rehabilitation therapy are exempt entirely.
It’s also arriving as compensation is already outrunning productivity. SullivanCotter’s 2026 survey of roughly 235,000 physicians found cash compensation for anesthesiology up 14% to 16% since 2024 and for radiology up 12% to 18%, while wRVU productivity gains were just 2.8% for adult medical specialties and 0.8% for primary care.
“As physician shortages persist and the implementation of AI tools alters care delivery, health care organizations must have agile compensation and care model strategies,” said Courtney Dutton, SullivanCotter’s managing director and clinical workforce services leader.
“While I appreciate the sentiment behind CMS’ proposed increase, the reality is that this adjustment still falls short,” Triwanna Fisher-Wikoff, MD, told Becker’s. “Had CMS and Congress addressed the flaws in the sustainable growth rate formula over 20 years ago… this increase would be far more meaningful today.”
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
