Medicare Physician Payment Reform Act of 2007 - Amends title XVIII (Medicare) of the Social Security Act to revise physician service fee schedule requirements, particularly the conversion factors in the formula for determining fees.
Provides for separate conversion factors for service categories. Establishes specified update service categories and expenditure measurement categories. Prescribes a formula for establishing updates for conversion factors for update service categories. Replaces sustainable growth rates with service category growth rates
Directs the Secretary of Health and Human Services to report to the appropriate congressional committees after the end of any year in which actual expenditures exceeded allowed expenditures for such year and the preceding year for either of the expenditure measurement categories: (1) clinical diagnostic laboratory tests; or (2) drugs, biologicals, and radiopharmaceuticals. Requires an analysis of the reasons for such excess expenditures and recommendations for addressing them in the future.