2006 proposed fee schedule - American Society of Clinical Oncology

codes that the RUC has not yet reviewed, the original data
from the Harvard resource-based RVU system survey is used.
Physician time includes time spent on the case prior to,
during, and after the procedure. The physician procedure
time is multiplied by the frequency that each procedure is
performed on Medicare patients by the specialty.
● The total specialty-specific SMS PE for each cost
category is the sum, for each direct and indirect cost
category, of all of the procedure-specific total PEs.
Table 1 illustrates an example of the calculation of
the total SMS cost pools for the three direct and one
indirect cost categories discussed in step 1. For this
specialty, PE/HR for clinical payroll expenses is $9.30 per
hour. The hourly rate is divided by 60 minutes to obtain
the clinical payroll per minute for the specialty.
The total clinical payroll for providing hypothetical
procedure 00001 for this specialty of $3,633,465 is the
result of taking the clinical payroll per minute of $0.16;
multiplying this by the physician time for procedure 00001
(56 minutes); and multiplying the result by the number of
times this procedure was provided to Medicare patients by
this specialty (418,602). The total amount spent on
clinical payroll in this specialty is $667,457,018. This
amount is calculated by summing the clinical payroll
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