Are you familiar with RVUs and conversion factors and how CMS determines reimbursement schedules, and the disproportionate representation of surgeons and other specialists on the RUC committee? I'm not trying to be smart; I'm genuinely wondering. Your idea that those who are doing more work should be paid more goes without saying. That was the whole idea with Relative Value Units- a way to compare CPT code to CPT code and measure the amount of time, skill, effort, etc. required to complete each task. Medicare (and by adoption almost every private health insurer) then has a conversion factor by which they will multiply a code's RVU to determine reimbursement.
For reference, a inpatient hospital management code is worth a little under 3 RVUs as is the 11400 code (benign excision <.5cm). So you would expect that the person removing the mole would earn approximately the same reimbursement as the person doing the E/M hospital visit. That's where the adjustment you're referring to (for doing the additional work for the procedure) should come into play. But in reality,
the conversion factors applied to the E/M codes are on average 30% lower than the conversion given to procedural codes, which makes this a double whammy. That 3-RVU hospital visit gets paid $101 by Medicare but the dermatologists 3-RVU mole removal earns $210. If they also did the E/M for that visit (although its more likely that a PCP did and then referred) they can also charge seperately for that
(which is why they are in the habit of making people schedule two consultations- one to look at the mole and then another to remove it).
It has been determined that on average a primary care physician gets reimbursed about $58.00 per relative value unit of work across all codes, while a procedure is reimbursed about $76.00 per unit. There's no rational basis for doing this! A procedure that takes four times the "work" is going to be paid six times the money. Therein lies the disparity, because the bulk of codes for a primary care physician are going to be E/M and not procedures, so they are not being fairly compensated for, literally, the relative value of work that they are putting in. Which, of course, makes procedures more financially lucrative and potentially overused.
You say "those docs are just doing more" but the truth is that
even adjusted for relative value units, the people doing procedures are making disproportionately more. Besides, I think its obvious anyway that a derm earning 2-3x the income of a pediatrician is not necessarily doing 2-3x more work.
Edit- here, this explains the problem very clearly:
http://www.aafp.org/fpm/20070400/13arey.html