2006 proposed fee schedule - American Society of Clinical Oncology

factor of 0.15. The charge-based clinical labor cost for
hypothetical procedure 00002 is $158.08 (from step 2-Table
2). Multiplying the 0.15 scaling factor for clinical labor
costs by $158.08 yields the scaled clinical labor cost
amount of $23.78. Individual scaling factors must be
calculated for both supply and equipment expenses. The sum
of the scaled direct cost values, $23.78, $32.57 and $2.72,
respectively, equals the total scaled direct expense of
$59.07.
TABLE 10--Calculation and Application of Direct Cost Scaling
Factors
Clinical Supplies Equipment
Total
Scaled
Direct
Expense
NPWP Methodology (A) (B) (C) (D)
Total - NPWP
(a)
Specialty Pool
$2,499,159 $1,503,559 $650,188
Total NPWP Charge-
(b)
based Pool
$16,613,742 $4,386,775 $9,986,912
(c) Scaling Factor 0.15 0.34 0.06
CPT 00002 -
(d)
Unscaled Value
$158.08 $95.03 $41.74
CPT 00002 - Scaled
(e)
Value
$23.78 $32.57 $2.72 $59.07
NPWP Step 4--Calculation of Indirect Expenses
Because codes in the nonphysician work pool do not have
work RVUs, indirect expenses are set equal to direct
expenses (for codes with physician work, indirect expenses
equal the sum of the scaled direct expenses and the
converted work RVU). This amount is then multiplied by the
number of times the procedure is performed.
44