Physician reimbursement: the environment for change

Escalation of costs for physician care services in the Medicare program has elicited measures to rein in these expenditures. These include freeze and control of physician fees, limits on reimbursement for certain procedures, and mandated assignment of clinical laboratory service charges. An important step in rationalizing physician fees lies in the resource cost-based relative value study undertaken by the American Medical Association together with Harvard University economists. The results should redress inequities inherent in the current reimbursement system and allow a more suitable distribution of funds within the profession.