WASHINGTON, DC – Today, the Dialysis Vascular Access (DVAC) Executive Committee issued the following statement in response to the text of the Budget Reconciliation legislation passed by the House of Representatives on May 22:

“We see the Physician Fee Schedule provisions in the House Budget Reconciliation package as an initial step toward providing further essential support that office-based healthcare providers will need during the rest of the 119th Congress. There is more work to do to help dialysis patients."

“While the estimated permanent 1.7% increase to the 2026 conversion factor is encouraging news, this adjustment falls short of fully reversing the 2024 reduction. The increase still leaves physicians facing an 8% cumulative decrease in the conversion factor between 2020 and 2026. Additionally, the proposed future increases—set at only 10% of the Medicare Economic Index—will not keep pace with medical inflation, making them insufficient from the start. We also note that this update – potentially as low as 0.23% annually – would fall well below the current law updates for APM participation of 0.75% and discourage APM participation going forward.”

“Furthermore, these provisions fail to address the critical need to fix Physician Fee Schedule practice expense shortfalls that are driving office-based specialists out of business, especially in rural and underserved communities. Continued reductions in PFS practice expense payments mean independent providers frequently receive compensation below their actual costs.”

“DVAC encourages the Senate to expand upon the initial PFS measures in the House Budget Reconciliation package by acknowledging the importance of cost-effective, office-based care and delivering necessary additional support for both conversion factor adjustments and practice expense relief for office-based healthcare providers. We believe that this approach will help dialysis patients get improved and more accessible care. “

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(1) The reconciliation bill provides for a 2026 conversion factor increase of 75% of MEI which is estimated by MedPAC to be around 2.3% per year from 2025 through 2023.