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

19.02.2013 Views

Step 6--Weighted Average of RVUs for Procedures Performed by More than One Specialty For codes that are performed by more than one specialty, a weighted average PE is calculated based on Medicare frequency data of all specialties performing the procedure as shown in Table 6. TABLE 6--Weight Averaging for All Specialties Standard Methodology Practice Expense Value Percent of Total Allowed Services (A) (B) (a) Specialty Total Practice Expense $390.12 83 (b) Weighted Avg. - All Other Specialties $929.87 17 (c) Weighted Avg. - All Specialties $481.70 100 Step 7--Budget Neutrality and Final RVU Calculation The total scaled direct and indirect inputs are then adjusted by a budget neutrality factor to calculate RVUs. Section 1848(c)(2)(B)(ii)(II) of the Act provides that adjustments in RVUs may not cause total PFS payments to differ by more than $20 million from what they would have been if the adjustments were not made. Budget neutrality for the upcoming year is determined relative to the sum of PE RVUs for the current year. Although the PE RVUs for any particular code may vary from year-to-year, the sum of PE RVUs across all codes is set equal to the current year. The budget neutrality factor (BNF) is equal to the sum of the current year's PE RVUs, divided by the sum of the direct and indirect inputs across all codes for the upcoming year. The 40

BNF is applied to (multiplied by) the scaled direct and indirect expenses for each code to set the PE RVU for the upcoming year. In Table 7, the sum of the scaled direct and indirect expenses for hypothetical code 00001 ($481.70) is multiplied by the BNF (0.02 in this example) to yield a PE RVU of 10.60. TABLE 7--Calculate PE RVU Total Scaled Direct and Indirect Inputs Budget Neutrality Factor 41 Final PE RVU (A) (B) (C) (a) Code 00001 $481.70 0.02 10.60 c. Other Methodological Issues: Nonphysician Work Pool (NPWP) As an interim measure, until we could further analyze the effect of the top-down methodology on the Medicare payment for services with no physician work (including the technical components (TCs) of radiation oncology, radiology and other diagnostic tests), we created a separate PE pool for these services. However, any specialty society could request that its services be removed from the nonphysician work pool. We have removed some services from the nonphysician work pool if we find that the requesting specialty provides the service the majority of the time.

BNF is applied to (multiplied by) the scaled direct and<br />

indirect expenses for each code to set the PE RVU for the<br />

upcoming year.<br />

In Table 7, the sum <strong>of</strong> the scaled direct and indirect<br />

expenses for hypothetical code 00001 ($481.70) is multiplied<br />

by the BNF (0.02 in this example) to yield a PE RVU <strong>of</strong><br />

10.60.<br />

TABLE 7--Calculate PE RVU<br />

Total Scaled Direct and<br />

Indirect Inputs<br />

Budget Neutrality<br />

Factor<br />

41<br />

Final PE<br />

RVU<br />

(A) (B) (C)<br />

(a) Code 00001 $481.70 0.02 10.60<br />

c. Other Methodological Issues: Nonphysician Work Pool<br />

(NPWP)<br />

As an interim measure, until we could further analyze<br />

the effect <strong>of</strong> the top-down methodology on the Medicare<br />

payment for services with no physician work (including the<br />

technical components (TCs) <strong>of</strong> radiation oncology, radiology<br />

and other diagnostic tests), we created a separate PE pool<br />

for these services. However, any specialty society could<br />

request that its services be removed from the nonphysician<br />

work pool. We have removed some services from the<br />

nonphysician work pool if we find that the requesting<br />

specialty provides the service the majority <strong>of</strong> the time.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!