2025 RVU Analysis Part 1 - GPCI Comparison

Every year, I dig into the latest RVU release to understand how the changes will affect my clients and other independent pediatric practices.  Since 2020, it's been a somewhat muted endeavor because all the payors strenuously avoid using any newer RVU year.  Why is that? Remember, the federal and AAP effort to move more money into primary care meant that E&Ms were massively improved and that money came out of specialty codes.  All those doctors taking Medicare got a real boost.  Pediatricians?  Not so much.  Or nearly at all, frankly.

I like to be prepared, however.  In dribs and drabs, practices are being offered RVU contracts years newer than 2020 and we want to know which year to pick.  Is 2021 better than 2022?  Is 2025 better than 2024?  The answer isn't simple (though anything from 2021-2025 is great, really), and this year makes it a little more challenging.  Why?  Because for the first year in memory, no one gets a GPCI boost.  In fact, many locations will recognize a real reduction (>1%) in RVUs moving from 2024 to 2025.

But don't panic, it's not all bad news.  And it requires some sophisticated understanding that I'll walk us through.  There is a lot of misunderstanding about how RVUs work and a lot of angst when, to be clear, 2025 is STILL a better year for pediatric RVUs than any time before 2021.  Let's start with this year's GPCI analysis.

I know this is a lot of preface, but it's important. 

Back to the GPCI adjustments.  As I've shared year over year over year, the changes to geographical adjustments to RVUs have a small, but subtle effect to your actual RVU - and payment - results.  Yes, we know that living in the Bay Area of CA adjusts your RVUs considerably higher and Mobile Bay in AL actually lowers them.  The relative changes from year to year, however, are just as interesting.   Living in Queens, NY, gives you a nice RVU boost, but did the people living there realize that their actual adjustment was reduced by more than 2% in 2024?

This year is tricky because there is an annual fight over the "Work GPCI Floor of 1.0."  Basically, the Feds make sure the minimum Work-RVU adjustment, by location, is always at neutral.  Last year, they originally extended that floor to mid-January but later corrected it for the year.  In other years, they haven't corrected it until much later.  Right now, the floor hasn't been corrected and I haven't heard what the expectation is.  So, I have to do TWO estimates - one with the present values, one if they get fixed.

Back to the story.  To estimate what your pediatric GPCI impact will be, I take the unit volume for all the procedures our clients perform and determine what the actual weighting of your work is.  I do this because the Practice Expense portion of typical pediatric work is greater than it is for the rest of medicine and using the weightings from the Feds isn't accurate for peds.

That's a long preamble for the conclusion I shared to open.  In 2025, even if we include the GPCI Floor of 1.0, every practice in the US will receive an additional -1.32% RVU hit.  That's right, even with the lower CF.  If the GPCI floor doesn't get restored, the hit is even bigger for some locations.  Let's take a look - and I've added the impact on GPCIs from 2020 until now:

Locality Name 2025 – With
Floor Intact
2025 – No GPCI
Work Floor
2024 2023 2020   2024-2025
Change
Change With
Floor Intact
2020-2025
Change
ALABAMA 91.9% 90.9% 93.2% 93.0% 93.4%   -2.4% -1.3% -2.6%
ALASKA 125.7% 125.7% 127.4% 126.9% 127.8%   -1.4% -1.4% -1.6%
ARIZONA 98.2% 97.4% 99.6% 97.6% 97.5%   -2.2% -1.4% -0.1%
ARKANSAS 91.3% 89.2% 92.5% 90.9% 91.2%   -3.6% -1.3% -2.2%
BAKERSFIELD 104.4% 104.4% 105.8% 104.2% 103.8%   -1.3% -1.3% 0.6%
CHICO 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
EL CENTRO 104.0% 104.0% 105.4% 103.5% 103.2%   -1.3% -1.3% 0.7%
FRESNO 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
HANFORD-CORCORAN 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
LOS ANGELES-LONG BEACH-ANAHEIM (LOS ANGELES/ORANGE CNTY) 110.8% 110.8% 112.3% 110.4% 110.0%   -1.3% -1.3% 0.7%
MADERA 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
MERCED 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
MODESTO 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
NAPA 116.9% 116.9% 118.4% 114.0% 112.4%   -1.3% -1.3% 4.0%
OXNARD-THOUSAND OAKS-VENTURA 109.4% 109.4% 110.8% 109.3% 109.1%   -1.3% -1.3% 0.3%
REDDING 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
RIVERSIDE-SAN BERNARDINO-ONTARIO 105.0% 105.0% 106.5% 104.7% 104.0%   -1.4% -1.4% 1.0%
SACRAMENTO-ROSEVILLE-FOLSOM 108.1% 108.1% 109.5% 106.2% 103.9%   -1.3% -1.3% 4.0%
SALINAS 108.6% 108.6% 110.0% 108.4% 106.5%   -1.3% -1.3% 2.0%
SAN DIEGO-CHULA VISTA-CARLSBAD 109.6% 109.6% 111.1% 108.9% 106.6%   -1.3% -1.3% 2.8%
SAN FRANCISCO-OAKLAND-BERKELEY (SAN FRANCISCO/SAN MATEO/ALAMEDA/CONTRA COSTA CNTY) 123.5% 123.5% 125.2% 120.7% 117.9%   -1.3% -1.3% 4.8%
SAN FRANCISCO-OAKLAND-BERKELEY (MARIN CNTY) 123.6% 123.6% 125.3% 120.8% 116.3%   -1.3% -1.3% 6.3%
SAN JOSE-SUNNYVALE-SANTA CLARA (SAN BENITO CNTY) 125.3% 125.3% 127.0% 123.6% 115.8%   -1.3% -1.3% 8.2%
SAN LUIS OBISPO-PASO ROBLES 105.9% 105.9% 107.4% 105.1% 103.8%   -1.3% -1.3% 2.1%
SAN JOSE-SUNNYVALE-SANTA CLARA (SANTA CLARA CNTY) 124.8% 124.8% 126.5% 123.1%     -1.3% -1.3%  
SANTA CRUZ-WATSONVILLE 110.0% 110.0% 111.5% 110.4% 108.3%   -1.3% -1.3% 1.6%
SANTA MARIA-SANTA BARBARA 108.5% 108.5% 109.9% 108.8% 107.1%   -1.3% -1.3% 1.2%
SANTA ROSA-PETALUMA 111.6% 111.6% 113.1% 110.5% 107.4%   -1.3% -1.3% 3.9%
STOCKTON 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
VALLEJO 116.7% 116.7% 118.3% 113.9% 112.4%   -1.3% -1.3% 3.8%
VISALIA 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
YUBA CITY 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
REST OF CALIFORNIA 103.9% 103.9% 105.3% 103.5% 103.1%   -1.3% -1.3% 0.8%
COLORADO 102.5% 102.5% 103.9% 102.0% 101.3%   -1.3% -1.3% 1.2%
CONNECTICUT 106.3% 106.3% 107.8% 106.7% 107.4%   -1.4% -1.4% -1.0%
DC + MD/VA SUBURBS 112.9% 112.9% 114.5% 114.1% 114.4%   -1.4% -1.4% -1.2%
DELAWARE 99.8% 99.8% 101.2% 100.5% 101.4%   -1.4% -1.4% -1.6%
FORT LAUDERDALE 102.4% 101.5% 103.9% 102.7% 103.3%   -2.3% -1.4% -1.8%
MIAMI 106.3% 105.6% 107.8% 106.6% 107.1%   -2.1% -1.4% -1.4%
REST OF FLORIDA 98.5% 97.1% 99.9% 98.5% 98.7%   -2.8% -1.4% -1.7%
ATLANTA 100.3% 100.1% 101.7% 100.0% 99.9%   -1.5% -1.4% 0.2%
REST OF GEORGIA 94.5% 93.0% 95.8% 94.1% 94.4%   -2.9% -1.4% -1.5%
HAWAII, GUAM 106.1% 106.0% 107.6% 106.2% 106.2%   -1.5% -1.3% -0.3%
IDAHO 93.5% 91.6% 94.8% 92.7% 92.5%   -3.4% -1.3% -1.0%
CHICAGO 104.8% 104.8% 106.3% 105.3% 105.6%   -1.4% -1.4% -0.7%
EAST ST. LOUIS 98.4% 97.5% 99.8% 99.0% 99.5%   -2.3% -1.4% -2.1%
SUBURBAN CHICAGO 104.6% 104.6% 106.1% 104.9% 105.2%   -1.4% -1.4% -0.5%
REST OF ILLINOIS 96.8% 95.5% 98.1% 96.6% 96.5%   -2.7% -1.4% -1.0%
INDIANA 94.3% 93.1% 95.6% 93.7% 93.4%   -2.6% -1.3% -0.3%
IOWA 93.8% 92.3% 95.1% 93.6% 93.3%   -2.9% -1.3% -1.0%
KANSAS 93.7% 92.1% 95.0% 93.6% 93.8%   -3.0% -1.3% -1.8%
KENTUCKY 93.5% 91.7% 94.7% 93.2% 93.0%   -3.3% -1.4% -1.5%
NEW ORLEANS 97.2% 96.1% 98.6% 97.7% 98.8%   -2.4% -1.4% -2.7%
REST OF LOUISIANA 93.9% 92.3% 95.2% 94.3% 94.8%   -3.0% -1.4% -2.6%
SOUTHERN MAINE 99.5% 98.5% 100.8% 99.1% 98.9%   -2.3% -1.3% -0.4%
REST OF MAINE 94.4% 92.7% 95.7% 94.0% 94.3%   -3.1% -1.4% -1.6%
BALTIMORE/SURR. CNTYS 105.9% 105.9% 107.4% 106.5% 107.1%   -1.4% -1.4% -1.1%
REST OF MARYLAND 101.3% 101.3% 102.7% 101.9% 102.5%   -1.4% -1.4% -1.2%
METROPOLITAN BOSTON 111.6% 111.6% 113.1% 111.7% 111.3%   -1.3% -1.3% 0.3%
REST OF MASSACHUSETTS 103.2% 103.2% 104.6% 103.5% 104.1%   -1.3% -1.3% -0.9%
DETROIT 101.8% 101.8% 103.2% 101.9% 102.0%   -1.4% -1.4% -0.2%
REST OF MICHIGAN 96.0% 94.9% 97.4% 95.8% 95.7%   -2.6% -1.4% -0.9%
MINNESOTA 99.0% 98.8% 100.3% 98.6% 98.3%   -1.5% -1.3% 0.5%
MISSISSIPPI 91.7% 89.4% 93.0% 91.4% 91.0%   -3.8% -1.4% -1.8%
METROPOLITAN KANSAS CITY 97.3% 96.5% 98.7% 97.4% 97.9%   -2.2% -1.4% -1.4%
METROPOLITAN ST. LOUIS 97.5% 96.7% 98.9% 98.0% 98.3%   -2.2% -1.4% -1.6%
REST OF MISSOURI 92.7% 90.7% 94.0% 92.4% 92.5%   -3.5% -1.4% -1.9%
MONTANA 99.9% 98.2% 101.3% 99.9% 101.1%   -3.0% -1.4% -2.8%
NEBRASKA 93.5% 92.2% 94.8% 93.1% 92.8%   -2.7% -1.3% -0.7%
NEVADA 99.5% 98.9% 100.9% 100.3% 100.7%   -1.9% -1.4% -1.7%
NEW HAMPSHIRE 101.4% 101.1% 102.8% 101.5% 102.1%   -1.7% -1.4% -1.0%
NORTHERN NJ 111.8% 111.8% 113.3% 111.9% 111.4%   -1.4% -1.4% 0.3%
REST OF NEW JERSEY 107.5% 107.5% 109.0% 108.1% 107.8%   -1.4% -1.4% -0.3%
NEW MEXICO 95.9% 94.7% 97.2% 95.7% 96.1%   -2.6% -1.4% -1.4%
MANHATTAN 113.6% 113.6% 115.2% 114.9% 115.1%   -1.4% -1.4% -1.3%
NYC SUBURBS/LONG ISLAND 116.2% 116.2% 117.8% 117.7% 117.9%   -1.4% -1.4% -1.5%
POUGHKPSIE/N NYC SUBURBS 108.4% 108.4% 109.9% 108.5% 107.1%   -1.4% -1.4% 1.2%
QUEENS 114.4% 114.4% 116.0% 117.1% 118.3%   -1.4% -1.4% -3.2%
REST OF NEW YORK 96.5% 96.1% 97.8% 96.7% 96.4%   -1.8% -1.4% -0.3%
NORTH CAROLINA 95.1% 94.4% 96.4% 95.5% 95.6%   -2.2% -1.4% -1.3%
NORTH DAKOTA 98.4% 97.5% 99.8% 98.2% 98.1%   -2.3% -1.3% -0.7%
OHIO 95.6% 94.8% 96.9% 95.8% 95.9%   -2.2% -1.4% -1.2%
OKLAHOMA 93.8% 92.2% 95.1% 93.6% 93.8%   -3.0% -1.4% -1.7%
PORTLAND 104.8% 104.8% 106.2% 103.7% 102.5%   -1.3% -1.3% 2.3%
REST OF OREGON 98.1% 97.1% 99.5% 96.9% 96.6%   -2.4% -1.3% 0.5%
METROPOLITAN PHILADELPHIA 104.4% 104.4% 105.8% 105.1% 106.0%   -1.4% -1.4% -1.6%
REST OF PENNSYLVANIA 96.0% 95.5% 97.4% 96.3% 96.7%   -1.9% -1.4% -1.2%
PUERTO RICO 100.3% 100.2% 101.7% 100.0% 100.4%   -1.4% -1.4% -0.2%
RHODE ISLAND 102.6% 102.6% 104.0% 103.0% 103.5%   -1.4% -1.4% -0.9%
SOUTH CAROLINA 95.0% 93.7% 96.3% 94.6% 94.0%   -2.7% -1.4% -0.3%
SOUTH DAKOTA 98.0% 96.8% 99.3% 97.8% 97.7%   -2.5% -1.3% -1.0%
TENNESSEE 93.2% 91.6% 94.5% 93.0% 93.1%   -3.1% -1.3% -1.6%
AUSTIN 102.1% 102.0% 103.5% 101.7% 100.7%   -1.4% -1.4% 1.2%
BEAUMONT 94.9% 94.2% 96.2% 95.3% 95.6%   -2.1% -1.4% -1.5%
BRAZORIA 100.3% 100.3% 101.6% 100.6% 100.6%   -1.4% -1.4% -0.3%
DALLAS 100.5% 100.5% 101.8% 100.7% 100.6%   -1.4% -1.4% -0.1%
FORT WORTH 100.1% 100.1% 101.5% 99.4% 98.8%   -1.4% -1.4% 1.3%
GALVESTON 100.2% 100.2% 101.5% 100.7% 101.1%   -1.4% -1.4% -0.9%
HOUSTON 102.1% 102.1% 103.6% 102.4% 101.9%   -1.4% -1.4% 0.2%
REST OF TEXAS 97.0% 96.3% 98.3% 96.7% 96.2%   -2.0% -1.4% 0.1%
UTAH 96.4% 94.6% 97.7% 95.8% 96.1%   -3.1% -1.4% -1.5%
VERMONT 98.1% 96.8% 99.4% 98.3% 98.9%   -2.6% -1.3% -2.1%
VIRGINIA 98.5% 98.5% 99.8% 98.9% 99.2%   -1.4% -1.4% -0.7%
VIRGIN ISLANDS 100.3% 100.2% 101.7% 100.0% 100.4%   -1.4% -1.4% -0.2%
SEATTLE (KING CNTY) 112.7% 112.7% 114.2% 111.6% 109.5%   -1.3% -1.3% 3.0%
REST OF WASHINGTON 101.7% 101.7% 103.1% 100.7% 100.0%   -1.3% -1.3% 1.7%
WEST VIRGINIA 94.1% 92.3% 95.4% 93.9% 93.7%   -3.3% -1.4% -1.5%
WISCONSIN 95.6% 94.9% 96.9% 95.1% 95.0%   -2.0% -1.3% -0.1%
WYOMING 99.1% 98.0% 100.5% 99.3% 99.5%   -2.5% -1.3% -1.6%

I welcome input.

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