Facility fees vs. no facility fees

Can someone please explain to me the difference between facility fee and non facility fee (RVUs)? My physician wants to know if he performs a procedure in our office does that mean it should be considered a non facility fee? And if he performs a procedure in an outpt or inpt facility does that mean it should be considered a facility fee?

Thank you,
Sheri

facility vs non facility

You are correct. Many procedures can be done in the office setting. The reimburstment is higher for a procedure done in the office because of the office over head cost. If done at the facility you are paid less because they have the over head cost. If your other insurance contracts follow the medicare fee schedule they will also have the same set up. Also keep this in mind when you set up your fees for a procedure that can be done in both places. You could have two different fees or pick the place that you do it most often.