What it is
Anesthesia payment is units times a dollar amount. That dollar amount is the conversion factor. See the billing formula.
Medicare
Medicare sets a national anesthesia conversion factor each year in the physician fee schedule, then adjusts it for each locality. Your Medicare contractor publishes the local amounts. They change every January, and sometimes during the year.
Commercial and Medicaid
Commercial plans set their own conversion factors, usually in your contract. They're often well above Medicare. Medicaid sets its own, usually lower.
Why it matters
Your average payment per unit, across all payers, is one of the most useful numbers you can track. See revenue per anesthesia unit.
This article is general information, not billing, legal or tax advice. Payer rules change; always check current guidance.
Sources
Free checklist
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