Payment Policy

AMA survey on practice expense includes occupational therapy

Indirect practice expense, a substantial part of determining reimbursement for current procedural terminology (CPT) codes, includes overhead costs of providing healthcare services such as administrative overhead, rent, and technology costs. Indirect expenses represent 33% of the calculation for total practice expenses utilized for CPT code values. Because of its importance in calculating overall practice expenses for CPT codes, changes in this area can have a significant impact on the overall reimbursement rates for delivering health care.

Recognizing that practices, costs, and technology have changed dramatically over the last decade, especially with rising inflation and increased use of technology to manage documentation, scheduling, and therapy delivery, the American Medical Association (AMA) is partnering with Mathematica to coordinate a survey of indirect practitioner practice expenses to inform code value recommendations for health care professionals--and AOTA is participating in this undertaking.

A random sampling of practices employing OT practitioners will be included in the electronic survey, which will be sent to selected practices beginning in early January 2024. These surveys should be completed by the financial officers of the practice, who can answer questions about overhead expenses and other costs associated with providing OT services in 2022.

The last time indirect practice expenses were surveyed was over 15 years ago. If selected, your practice’s feedback will be critical to ensure that the indirect practice expenses used for CPT code valuation accurately reflect the current costs of conducting the business of occupational therapy.

Please make your practice aware and be on alert for an email from ppisurvey@mathematica-mpr.com in early 2024. Encourage your practice to complete the survey before the June 2024 deadline.

Please contact regulatory@aota.org with questions or concerns about participation in this important endeavor.

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