2006 proposed fee schedule - American Society of Clinical Oncology

NPWP Step 2--Calculation of Charge-based PE RVU Cost Pool
The nonphysician work pool calculation uses the 1998
(charge-based) PE RVU value for the code, multiplied by the
1995 CF (25.74 x $34.503 = $888.11). The percentage of
clinical labor, supplies and equipment are the percentage
that each PE category represents for all physicians relative
to the total PE for all physicians (calculated from the SMS
data) as shown in Table 9.
TABLE 9--Calculate Charge-Based Cost Pools for Nonphysician
Work Pool
NPWP Methodology Clinical Supplies Equipment
(A) (B) (C)
CPT 00002 - Charge Based
(a)
Value
$888.11 $888.11 $888.11
Percent Clinical,
(b)
Supplies, Equipment
0.18 0.11 0.05
(c) CPT 00002 $158.08 $95.03 $41.74
(d) Number of - NPWP 105,095 105,095 105,095
(e) Total NPWP "CPEP" Pool
(c) = (a)*(b)
(e) = (c)*(d)
$16,613,742 $4,386,775 $9,986,912
NPWP Step 3--Calculation and Application of Scaling Factors
After the total cost pools for each specialty and code
performed by the specialty are calculated, the steps to
ensure the total costs for all of the procedures performed
by a specialty do not exceed the total costs for the
specialty (scaling) are the same as those described
previously for codes with physician work.
In Table 10 below, the SMS total clinical labor costs
is $2,499,159. This amount divided by the charge-based
total clinical labor amount of $16,613,742 yields a scaling
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