On July 14 CMS issued a proposed rule outlining Medicare Part B payment policy changes for physicians and other practitioners under the calendar year 2027 Physician Fee Schedule, including a 1.68% decrease in the proposed conversion factor for non-qualifying alternative payment model participants.
While the rule isn’t designed specifically for ASCs, leaders in the space are still keeping a close eye on what changes will be finalized and how it will impact physicians’ practice and compensation.
Two ASC leaders recently joined Becker’s to share their reactions to the CMS announcement and how they think it will impact ASCs.
Editor’s note: Responses have been lightly edited for clarity and length.
Alex Taira. Associate Director of Public & Regulatory Affairs at the Ambulatory Surgery Center Association: Although the Medicare Physician Fee Schedule primarily affects physicians rather than ASCs, changes to physician payment can influence practice patterns and, in turn, ASCs.
ASCA anticipated CMS would propose a lower physician conversion factor, because last year’s increase resulted from a temporary 2.5% payment boost included in the One, Big, Beautiful Bill Act. Congress has intervened to increase physician payments several times in recent years, but the conversion factor has declined in five of the past six years, so this is not an aberration. While the conversion factor may decrease, the impact on reimbursement will vary by procedure code.
In its comments, ASCA plans to address CMS’ continued adjustments to indirect practice expense calculations for facility versus non-facility settings, the proposed Ambulatory Specialty Model scheduled to begin in 2027, and updates to global surgery periods and payments.
Ed Tolentino. Administrator of Outpatient Surgery Center of Central Florida (Wildwood): Reimbursement compression has become a structural reality in healthcare, not an isolated event. While we anticipated continued pressure on physician payments and have planned accordingly, further reductions increase the importance of operational efficiency, physician alignment, and disciplined growth. The organizations that will succeed are those that consistently deliver high-quality care at a lower cost while maintaining strong clinical outcomes. From our perspective, these changes reinforce, not change our long-term strategy.
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.
