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Healthcare Term

Anesthesia Conversion Factor

The anesthesia conversion factor is the dollar multiplier used to calculate the payment amount for anesthesia services by multiplying it by the total anesthesia units.

What is an Anesthesia Conversion Factor?

An anesthesia conversion factor is a dollar amount used in the calculation of allowable payment for anesthesia services. This factor, often determined for specific localities, is used in the formula to compute the total fee amount for anesthesia care, which is generally calculated as (Base Units + Time [in units]) x Conversion Factor. A single conversion factor is typically applied to all qualified anesthesia practitioners, whether they are physicians or non-physicians.

The Centers for Medicare and Medicaid Services (CMS) and other payers publish these conversion factors annually for use with specific CPT codes for anesthesia services (e.g., 00100 to 01999). It is important to note that the anesthesia conversion factor is distinct from the relative value unit (RVU) conversion factor used for other physician services. The value of the conversion factor can vary based on locality, as well as whether the provider is participating or non-participating with Medicare.

What is the difference between an Anesthesia Conversion Factor and Relative Value Unit (RVU) conversion factor?

An anesthesia conversion factor is a dollar amount used to calculate the payment for anesthesia services using the formula: (Base Units + Time [in units]) x Conversion Factor. This factor is distinct from the Relative Value Unit (RVU) conversion factor.

The anesthesia conversion factor is used for calculating allowable payment for anesthesia services (CPT codes 00100 to 01999), while the RVU conversion factor is used for other physician services.

The anesthesia conversion factor is used in the formula (Base Units + Time [in units]) x Conversion Factor to compute the total fee for anesthesia care.

Anesthesia conversion factors are published annually by CMS and other payers and can vary based on locality and provider participation status.

What are examples of an Anesthesia Conversion Factor?

1

A Medicare Participating Physician and CRNA conversion factor for Metropolitan Boston in 2025 is $21.50, which is used to calculate the allowed payment for anesthesia services in that locality.

2

The calculation for the total fee amount for anesthesia care generally follows the formula: (Base Units + Time [in units]) x Conversion Factor.

3

The anesthesia conversion factor is different from the relative value unit (RVU) conversion factor used for other physician services, reflecting its specific use for calculating anesthesia payment.

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