Place of Service

Medicare Part B pays for services that physicians provide to program beneficiaries. Although physicians routinely perform many of these services in an outpatient hospital department or in a freestanding ambulatory surgical center, some of these services may also be performed in nonfacility settings such as a physician's office. To account for the increased expense that physicians incur by performing services in their offices, Medicare reimburses physicians a higher amount for services performed in their offices rather than in an outpatient hospital or an ambulatory surgical center. Click here for complete update