Medical Societies Release Statement on Congress’ Failure to Mitigate Impact of Clinical Labor Pricing Update Policy in Omnibus Appropriations Package

The Clinical Labor Coalition—a group of national medical societies representing a broad range of physicians, health professionals and practice managers who care for Medicare beneficiaries in a community-based, office setting—released the following statement in response to Congress’ failure to include targeted monies to mitigate the impact of the clinical labor pricing update policy in the year-end omnibus appropriations package.

December 22, 2022 — The Clinical Labor Coalition—a group of national medical societies representing a broad range of physicians, health professionals and practice managers who care for Medicare beneficiaries in a community-based, office setting—released the following statement in response to Congress’ failure to include targeted monies to mitigate the impact of the clinical labor pricing update policy in the year-end omnibus appropriations package.

“The Clinical Labor Coalition (CLC) is disappointed that the fiscal year 2023 Omnibus Appropriations bill not only fails to prevent the scheduled 4.5% cut to the Medicare conversation factor (CF) for 2023 in its entirety, but also omits critical policy designed to explicitly increase the non-facility/office-based practice expense relative value units (NF PE RVUs) negatively impacted by CMS’ clinical labor update policy.”

Despite Congress’ intent to partially mitigate scheduled Medicare payment reductions for 2023, the bottom line is that physicians’ payments are still being cut. The impact of these cuts is real, and disproportionately impacts those practicing in community-based, office settings, and will increasingly result in diminished access to care for Medicare patients seeking a variety of critical services. Community-based office setting specialty care is a critical part of the nation’s healthcare infrastructure, and we are certain that these now annual payment reductions for CY 2022 – 2025 and beyond will result in repercussions for the future, impacting access and value.

The CLC remains concerned that 2023 payment reductions, combined with the impacts of high inflation, will result in a breaking point for many physicians. These annual payment reductions are driving providers from the field (either through retirement or career adjustment), with practices being closed or sold, and the consequence being a significant number of patients losing access to a variety of healthcare service in their communities. The 118th Congress must prioritize Medicare payment reforms designed to provide stability for physicians and the patients they serve in all sites of service.

Coalition members include:

Alliance of Wound Care Stakeholders

American College of Cardiology

American College of Radiation Oncology

American College of Radiology

American Rhinologic Society

American Society for Radiation Oncology

American Society of Diagnostic and Interventional Nephrology

American Society of Nephrology

American Urological Association

American Vascular Associates

American Vein & Lymphatic Society