2006 proposed fee schedule - American Society of Clinical Oncology

ased on the labor components established in the relevant
market baskets for each provider type.
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The basis for determining the current labor shares is
based on outdated data from very few facilities relative to
the current number of ESRD facilities (110 versus
approximately 4300 facilities). We are proposing to
establish a single labor-related share applicable to all
ESRD facilities based on the labor-related categories
included in the ESRD composite rate market basket. This
change will bring the methodology for the ESRD composite
rate labor-related share more in line with that for
determining the labor-related shares for other Medicare
PPSs.
(1) ESRD Composite Rate Market Basket
In the following sections, we present a brief
background on market baskets, provide a reference to the
detailed methodology used to develop the ESRD composite rate
market basket, and outline the methodology used to determine
the proposed ESRD labor share.
As required by section 422(b) of the Medicare,
Medicaid, and SCHIP Benefits Improvement and Protection Act
of 2000 (BIPA), Pub. L. 106-554, we developed an ESRD
composite rate market basket. Each of the PPSs that we
administer utilizes a market basket that reflects each type
of provider’s production patterns used to furnish patient