CMS has posted an “emergency update” to the 2011 Medicare physician fee schedule (MPFS) files, reflecting recent statutory changes and certain technical corrections. The final conversion factor for 2011 is $33.9764, compared to the December 20, 2010 conversion factor of $36.8729. Although recent physician fee schedule fix legislation, the Medicare and Medicaid Extenders Act of 2010 (MMEA), called for a zero percent update to the physician fee schedule, CMS has adjusted the conversion factor downward to ensure budget neutrality in light of other changes to relative value units (RVUs). In addition to the conversion factor change, CMS also has revised practice expense and malpractice RVUs and payment indicators for certain procedures, among other changes. CMS also has released a corresponding transmittal to contractors with additional details on recent statutory policy changes impacting the MPFS.