Medicare Volume Performance Standards

Medicare Volume Performance Standards

A series of legislated standards enacted by the US Congress as an alternative to spending targets in Medicare. The Sustainable Growth Rate (SGR) system replaced the Medicare Volume Performance Standards  (MVPS) in 1998 as the mechanism to ensure Medicare physician spending did not exceed expenditure targets.

The MVPS were created with the understanding that the standards would be “reasonable”, and based on the reality that Medicare recipients increased at a rate of 12%/year since 1966; they provided a format for comparing physician pay, and were believed to have had the net effect of blocking inflationary increases in Medicare payments for physicians. The proposed MVPS were set so low as to virtually ensure cuts in the Medicare Economic Index.
References in periodicals archive ?
Estimates of the behavioral response continue to be of importance to the Medicare program because assumptions regarding the volume response have been used in estimating savings from changes in Medicare policy, in setting the initial conversion factor, and in the annual Medicare Volume Performance Standards (MVPS).
Finally, the AMA signaled its intention to continue to oppose implementation of the Medicare Volume Performance Standards as expenditure targets or caps in legislation or regulations.
Physician Payment Review Commission: Fee Update and Medicare Volume Performance Standards for 1993.
Beginning this year, Medicare Volume Performance Standards (MVPS) will create overall expenditure targets for physician services.
However, some critical observers of the Washington scene note that the Medicare volume performance standards contained in the final bill and the eventual restriction on balance billing to 115 percent of an approved national fee schedule have the potential to achieve the same ends as the unwelcome ethods, only carrying a different label.