2006 proposed fee schedule - American Society of Clinical Oncology
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2006 proposed fee schedule - American Society of Clinical Oncology

2006 proposed fee schedule - American Society of Clinical Oncology 2006 proposed fee schedule - American Society of Clinical Oncology

asco.org
19.02.2013 Views

care. The market baskets capture the rate of price inflation for a fixed quantity of inputs (both goods and services used to provide medical services) relative to a base year. Each of the PPS market baskets distinguishes 156 between labor-related and non-labor costs. Similar to other PPSs, we believe the ESRD composite rate market basket index is an appropriate measure for revising the labor-related portion of the composite payment rate. The detailed methodology used to develop the ESRD composite rate market basket, including data sources, cost categories, and price proxies, is set forth in the Secretary’s May 2003 report to the Congress, Toward a Bundled Outpatient Medicare ESRD Prospective Payment System. That report is available on the internet at http://qa.cms.hhs.gov/providers/esrd and we recommend it to interested readers. We used CY 1997 as the base year for the development of the ESRD composite rate market basket cost categories. Source data included CY 1997 Medicare cost reports (Form CMS-265-94), supplemented with 1997 data from the U.S. Department of Commerce, Bureau of the Census’ Business Expenditure Survey (BES). Analysis of Medicare cost reports for CYs 1996, 1997, 1998, and 1999 showed little difference in cost weights compared to CY 1997. Medicare cost reports from independent ESRD facilities were used to construct the market basket because data from independent ESRD facilities tend to reflect the

157 actual cost structure faced by the ESRD facility itself, and are not influenced by the allocation of overhead over the entire institution as in hospital-based facilities. This approach is consistent with our standard methodology used in the development of other market baskets, particularly those used for updating the SNF and home health PPSs. We expect that the cost structure in both hospital-based and independent ESRD facilities and units would be similar. Therefore, we are proposing to base the labor-related share of the composite payment rates on data from freestanding facilities only. In Table 24, we have reproduced Table 2 from the May 2003 report to the Congress containing the ESRD composite rate market basket cost categories, weights, and price proxies in this proposed rule. This table lists all of the expenditure categories in the ESRD composite rate market basket.

157<br />

actual cost structure faced by the ESRD facility itself, and<br />

are not influenced by the allocation <strong>of</strong> overhead over the<br />

entire institution as in hospital-based facilities. This<br />

approach is consistent with our standard methodology used in<br />

the development <strong>of</strong> other market baskets, particularly those<br />

used for updating the SNF and home health PPSs. We expect<br />

that the cost structure in both hospital-based and<br />

independent ESRD facilities and units would be similar.<br />

Therefore, we are proposing to base the labor-related share<br />

<strong>of</strong> the composite payment rates on data from freestanding<br />

facilities only.<br />

In Table 24, we have reproduced Table 2 from the May<br />

2003 report to the Congress containing the ESRD composite<br />

rate market basket cost categories, weights, and price<br />

proxies in this <strong>proposed</strong> rule. This table lists all <strong>of</strong> the<br />

expenditure categories in the ESRD composite rate market<br />

basket.

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