Time and Financial Costs for Physician Practices to Participate in the Medicare Merit-based Incentive Payment System

Importance: The Merit-based Incentive Payment System (MIPS) is a major Medicare value-based purchasing program, influencing payment for more than 1 million clinicians annually. There is a growing concern that MIPS increases administrative burden, and little is known about what it costs physician practices to participate in the program. Objective: To examine the costs for independent physician practices to participate in MIPS in 2019. Design Setting and Participants: This qualitative study identified and interviewed leaders of physician practices participating in the US Centers for Medicare medium, 10-25; and large, ≥50), specialty (primary care, general surgery, or multispecialty), and US census region. Participants were asked about 2019 costs related to clinician and staff time, information technology, and external vendors. Time was converted to financial costs using the Medical Group Management Association's Provider Compensation and the Management and Staff Compensation databases. Main Outcomes and Measures: Annual time spent by staff on MIPS-related activities and mean per-physician costs to physician practices in 2019. Results: Leaders of 30 physician practices (9 30. 0% small primary care, 6 20. 0% small general surgery, 4 13. 3% medium primary care, 4 13. 3% medium general surgery, and 7 23. 3% large multispecialty) represented all US census regions, and 14 of the 30 (46. 7%) practices participated in a MIPS alternative payment model in 2019. The mean per-physician cost to practices of participating in MIPS was 12 811 (interquartile range IQR, 2861-17 715). Physicians, clinical staff, and administrative staff together spent 201. 7 (IQR, 50. 9-295. 2) hours annually per physician on MIPS-related activities. Medical assistants and nursing staff together spent a mean of 99. 2 (IQR, 0-163. 3) hours per physician each year; frontline physicians spent 53. 6 (IQR, 0. 6-55. 8) hours; executive administrators spent 28. 6 (IQR, 3. 1-26. 7) hours; other clinicians and staff spent a combined 20. 3 (IQR, 0-36. 8) hours. Physician time accounted for the greatest proportion of overall MIPS-related costs (54%; 6909; IQR, 94-9905). Conclusions and Relevance: In this qualitative study, physician practice leaders reported significant time and financial costs of participating in the MIPS program. Attention to reducing the burden of MIPS may be warranted.