Medicare Volume Performance Standards
Medicare Volume Performance StandardsA 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.