Physician payment under Medicare--recent developments and a look ahead.

Continuing increases in Medicare expenditures for physicians' services, despite repeated attempts to control costs, have led to substantial pressure to reform the system by which Medicare pays physicians. This article summarizes the most recent changes to Medicare's methodology for physician payments. It then discusses more far-reaching reforms likely to be considered during the next several years. Finally, it suggests ways in which local physician groups, including hospital medical staffs, may be able to influence the outcome of the reform process.