2006 proposed fee schedule - American Society of Clinical Oncology

expenses of procedure 00001 and all of the other services
provided by this specialty.
TABLE 1--Calculation of SMS Cost Pool
Standard Methodology
Clinical
Payroll
Medical
Supplies
Medical
Equipment
Indirect
Expenses
Total*
(A) (B) (C) (D) (E)
(a) PE/HR $9.30 $4.80 $7.40 $46.50 $68.00
(b) PE/Minute $0.16 $0.08 $0.12 $0.78 $1.13
(c) Physician Time - 00001 56 56 56 56 56
(d) Number of Services 418,602 418,602 418,602 418,602 418,602
(e) Subtotal $3,633,465 $1,875,337 $2,891,144 $18,167,327 $26,567,274
(f) All Other Services $663,823,552 $342,618,608 $528,203,687 $3,319,117,762 $4,853,763,609
(g) Total - SMS Pool
(b) = (a)/60
(e) = (b)*(c)*(d)
(g) = (e)+(f)
$667,457,018 $344,493,945 $531,094,831 $3,337,285,089 $4,880,330,883
* Components may not add to totals due to rounding.
Step 2--Calculation of CPEP Cost Pool
CPEP data provide expenditure amounts for the direct
expense categories (clinical labor, supplies and equipment
cost) at the procedure level. Multiplying the CPEP
procedure-level PEs for each of these three categories by
the number of times the specialty provided the procedure,
produces a total category cost, per procedure, for that
specialty. The sum of the total expenses from each
procedure results in the total CPEP category cost for the
specialty.
For example, in Table 2, using CPEP data, the clinical
labor cost of procedure 00001 is $65.23. Under the
methodology described above in this step, this is multiplied
by the number of services for the specialty (418,602), to
yield the total CPEP data clinical labor cost of the
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