Medicare Conversion Factor: Then vs. Now

When looking at reimbursement for physical therapy, it’s not enough to just watch and compare the nominal Medicare conversion factor year over year- we also have to ask what it means in real dollars.

Here’s the reality:
2016 CF = $35.80 → worth $48.93 in 2025 dollars
2020 CF = $36.09 → worth $45.74 in 2025 dollars
2026 proposed CF = $33.42 → worth only $32.62 in 2025 dollars!!!

That’s more than a 35% loss over the past decade.

Even with the 2026 proposed bump, we’re still far below historical levels once inflation is factored in- and that’s even before considering the RVU revaluations that further impact therapy codes.

Practices are being asked to deliver the same skilled care with fewer resources. Rising costs in wages, compliance, and supplies are colliding with shrinking real reimbursement.

This trend highlights why advocacy, smart practice management, and policy reform remain essential for sustainability in outpatient rehab.

We're all celebrating the positive conversion factor- and yes, it's a step in the right direction, but we still have so far to go... keep up the advocacy!