Physician Quality Reporting System (PQRS – Formerly known as the Physician Quality Reporting Initiative or PQRI) - Established by the Centers for Medicare & Medicaid Services (CMS), PQRS uses a combination of incentive payments and downward payment adjustments (penalties) to promote reporting of quality information by eligible professionals. However, the financial incentive (available to eligible professionals who satisfactorily report data on certain quality measures for Medicare Part B services paid under the physician fee schedule) will sunset after 2014. Additionally, CMS is mandated to apply a payment adjustment (penalty) beginning in 2015 (based on data reported in 2013) to those eligible professionals who do not satisfactorily report (or do not report) data on quality measures for covered professional services. This annual assessment will continue indefinitely, using data from the calendar year two years prior. That is, the payment adjustment (penalty) in 2016 is based on reporting year 2014.