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2006 proposed fee schedule - American Society of Clinical Oncology

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175<br />

Because Neighborhood Dialysis Center is located within<br />

the Baltimore-Towson MD CBSA (code 12580), its new wage<br />

index, which has been adjusted for budget neutrality, is<br />

1.0135. Applying the wage index <strong>of</strong> 1.0135 to the revised<br />

labor-related component <strong>of</strong> the base composite rate for<br />

independent facilities shown in Table 26, yields a labor<br />

adjusted payment rate <strong>of</strong> $129.28.<br />

( $ 68.<br />

94 × 1.<br />

0135)<br />

+ $ 59.<br />

41 = $ 129.<br />

28<br />

This labor adjusted payment rate <strong>of</strong> $129.28 is less<br />

than the wage-adjusted composite rate <strong>of</strong> $134.93 currently<br />

applicable to Neighborhood Dialysis Center. In accordance<br />

with our <strong>proposed</strong> two year transition, this facility would<br />

receive a wage-adjusted composite payment rate beginning<br />

January 1, <strong>2006</strong> equal to 50 percent <strong>of</strong> its current<br />

wage-adjusted rate plus 50 percent <strong>of</strong> its new wage-adjusted<br />

rate. The CY <strong>2006</strong> blended wage-adjusted rate for this<br />

facility would be $132.11.<br />

( 0 . 50 × $ 134.<br />

93)<br />

+ ( 0.<br />

50 × $ 129.<br />

28)<br />

= $ 132.<br />

11<br />

The 8.9 percent drug add-on adjustment and relevant<br />

case-mix adjustments (related to the budget neutrality<br />

adjustment) would be applied to this blended rate.<br />

• Example 2--Serve U Well is a hospital-based dialysis<br />

facility located in Morrow County, Ohio. The Crosswalk<br />

table (see Addendum F) reveals that Morrow County was<br />

previously classified as rural, but is now classified urban

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