Medicare Physician Payment Reform Act of 1989

Medicare Physician Payment Reform Act of 1989 - Amends part B (Supplementary Medical Insurance) of title XVIII (Medicare) of the Social Security Act to provide for the gradual transition, from 1992 through 1995, to the determination of Medicare payments for physician services pursuant to a fee schedule which takes into account the relative value of the work, overhead, and malpractice risks associated with each physician service. Allows for geographic variations in resource values.

Sets Medicare payments for nonparticipating physicians' services at 95 percent of the fee schedule amount. Prohibits payments for the same physician service from varying on the basis of whether or not the physician is a specialist. Sets forth sumptuary provisions. Limits nonparticipating physicians' actual charges for unassigned claims. Requires that payments for physician services to Medicaid (title XIX of the Social Security Act)-eligible Medicare beneficiaries be made on an assignment-related basis. Increases the incentive payment for physicians' services furnished in manpower shortage areas from five to ten percent of the payment for such services. Sets forth miscellaneous study and reporting requirements.

Directs the Secretary of Health and Human Services to establish: (1) a patient outcomes assessment research and education program focusing primarily on the study of the management of health conditions; and (2) a practice parameters development program providing health care professionals with information regarding the health care practices found to be most effective. Directs the Secretary to establish the Independent Advisory Committee on Managing Patient Outcomes and enter into a contract with the National Academy of Sciences for assistance in conducting such programs and reviewing outcomes research. Sets forth reporting requirements. Authorizes appropriations for such programs through FY 1992.