CMS has released its estimates of the 2009 physician fee schedule conversion factor update, conversion factor, and sustainable growth rate (SGR). In the absence of additional legislation, CMS expects the SGR formula to result in a 2009 physician fee schedule conversion factor update of -5.4 percent which would result in a 2009 conversion factor of $32.2285. This would be 15.4 percent lower than the current $38.0870 conversion factor in effect for the first half of 2008, and 15.0 percent lower than the 2007 conversion factor.