Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

The relative value of how physicians are paid needs to change

Toni Brayer, MD
Policy
September 24, 2013
Share
Tweet
Share

The Centers for Medicare and Medicaid (CMS) sets the rates all physicians get paid and insurance companies base their rates on the same formula. So who creates the formula? Well, it’s the doctors, silly! Or at least some of the doctors. Here’s how it works.

A 31-member committee formed by the American Medical Association is made up of representatives from the various specialty societies. This Relative Value Update Committee (RUC) meets in private and decides how much value each unit of medical work represents. That unit of work is then assigned a dollar amount and that creates the pay scale.

The catch is that primary care (internal medicine, family medicine and pediatrics) is very poorly represented on the committee. The surgical specialties; anesthesia, radiology and even tiny surgical specialties like urology or ear, nose and throat are equally represented and as a group they get to decide how to value a doctors time and expertise. This is why primary care has been undervalued and underpaid all of these years. Somehow something done with a scope or a tube or a scalpel is considered many times more valuable than thinking and diagnosing and treating.

This RUC has been criticized for years but no other system has been designed to replace it. The value that some specialties like ophthalmology and orthopedics are paid has created situations where doctors are paid the equivalent of 12 hours of procedures in a single day. The panel estimated 75 minutes for each colonoscopy and, according to the Washington Post, one doctor was able to bill for 26 hours of paid work in a single day. A colonoscopy rarely takes more than 20-30 minutes and most of the work is done by the nurse setting up the procedure.

I have been writing about the fact that fewer and fewer of our brightest physicians are choosing primary care specialties. This decline has persisted for years and now we have truly reached a crisis point, especially when Obamacare goes into effect and more people will be seeking care.

It is no wonder that young graduating doctors with $150,000 in school debt would pick a specialty like anesthesia where they could work 8 hours, never be on call, have no practice expense (except a billing and accounting service) and make 4-5 times what an internist makes. Thanks to the RUC for the lopsided value they place on medical care.

Medicare spending is capped. There is no way to raise the rates for needed physicians (like primary care) unless the value of other services is ratcheted down. The current RUC is seriously flawed and the time and relative work estimates some of the specialties have come up with is just wrong. Furthermore, this payment method shows no consideration for quality outcomes or value to society.

The Unites States is the only country where these wide ranges of specialist physician pay is seen. The relative value, as it is done now, needs to change.

Toni Brayer is an internal medicine physician who blogs at EverythingHealth.

Prev

Addressing the disparities in those using patient portals

September 24, 2013 Kevin 51
…
Next

Can sexualized images from pop music be a teachable moment?

September 24, 2013 Kevin 1
…

Tagged as: Medicare, Primary Care, Specialist

Post navigation

< Previous Post
Addressing the disparities in those using patient portals
Next Post >
Can sexualized images from pop music be a teachable moment?

ADVERTISEMENT

More by Toni Brayer, MD

  • Health care predictions 2025: What’s next for AI, access, and home care

    Toni Brayer, MD
  • Struggles of navigating prestigious medical systems

    Toni Brayer, MD
  • Don’t wait until you’re old: Diseases hitting younger generations now

    Toni Brayer, MD

More in Policy

  • Mobile dentistry: a structural redesign for public health

    Rida Ghani
  • Accountable care cooperatives: a 2026 vision for U.S. health care

    David K. Cundiff, MD
  • Geography as destiny: the truth about U.S. life expectancy disparities

    Arthur Lazarus, MD, MBA
  • Student loan cuts for health professionals

    Naa Asheley Ashitey
  • Why lab monkey escapes demand transparency

    Mikalah Singer, JD
  • The political selectivity of medical freedom: a double standard

    Arthur Lazarus, MD, MBA
  • Most Popular

  • Past Week

    • Whole-body MRI screening: political privilege or future of care?

      Michael Brant-Zawadzki, MD | Physician
    • Physician attrition rates rise: the hidden crisis in health care

      Arthur Lazarus, MD, MBA | Physician
    • How frivolous lawsuits drive up health care costs

      Howard Smith, MD | Physician
    • The physical exam in the AI era

      Jason Ryan, MD | Physician
    • Concierge medicine access: Is it really the problem?

      Dana Y. Lujan, MBA | Conditions
    • The shifting meaning of supervision in modern health care

      Timothy Lesaca, MD | Physician
  • Past 6 Months

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • The loss of community pharmacy expertise

      Muhammad Abdullah Khan | Conditions
    • Catching type 1 diabetes before it becomes life-threatening [PODCAST]

      The Podcast by KevinMD | Podcast
  • Recent Posts

    • Medical brain drain leaves vulnerable communities without life-saving care [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why a nice surgeon might actually be a better surgeon

      Sierra Grasso, MD | Physician
    • Did ABIM MOC reform actually fix the problem for physicians?

      Brian Hudes, MD | Physician
    • Scrotal pain in young men: When to seek urgent care

      Martina Ambardjieva, MD, PhD | Conditions
    • Mobile dentistry: a structural redesign for public health

      Rida Ghani | Policy
    • How physicians can preserve trust after medical errors [PODCAST]

      The Podcast by KevinMD | Podcast, Sponsored

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 35 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Whole-body MRI screening: political privilege or future of care?

      Michael Brant-Zawadzki, MD | Physician
    • Physician attrition rates rise: the hidden crisis in health care

      Arthur Lazarus, MD, MBA | Physician
    • How frivolous lawsuits drive up health care costs

      Howard Smith, MD | Physician
    • The physical exam in the AI era

      Jason Ryan, MD | Physician
    • Concierge medicine access: Is it really the problem?

      Dana Y. Lujan, MBA | Conditions
    • The shifting meaning of supervision in modern health care

      Timothy Lesaca, MD | Physician
  • Past 6 Months

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • The loss of community pharmacy expertise

      Muhammad Abdullah Khan | Conditions
    • Catching type 1 diabetes before it becomes life-threatening [PODCAST]

      The Podcast by KevinMD | Podcast
  • Recent Posts

    • Medical brain drain leaves vulnerable communities without life-saving care [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why a nice surgeon might actually be a better surgeon

      Sierra Grasso, MD | Physician
    • Did ABIM MOC reform actually fix the problem for physicians?

      Brian Hudes, MD | Physician
    • Scrotal pain in young men: When to seek urgent care

      Martina Ambardjieva, MD, PhD | Conditions
    • Mobile dentistry: a structural redesign for public health

      Rida Ghani | Policy
    • How physicians can preserve trust after medical errors [PODCAST]

      The Podcast by KevinMD | Podcast, Sponsored

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

The relative value of how physicians are paid needs to change
35 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...