2006 proposed fee schedule - American Society of Clinical Oncology

esults in a scaling factor of 1.51. Next, the unscaled
indirect charge-based cost for procedure 00002 of $59.07
(from step 4-Table 4) is multiplied by the 1.51 scaling
factor, resulting in scaled indirect costs for this
procedure of $89.19.
TABLE 12--Calculation and Application of Indirect Cost
Scaling Factors
Standard Methodology
Indirect
Costs
Direct Cost
46
Specialty
Specific
PE RVU
(A) (B) (C)
Total - NPWP "SMS"
(a)
Pool
$9,407,404
Total NPWP Indirect
(b)
Expense
$6,207,961
(c) Scaling Factor 1.51
CPT 00002 - Unscaled
(d)
Value
$59.07
CPT 00002 - Scaled
(e)
Value
$89.19 $59.07 $148.26
NPWP Step 6--Budget Neutrality and Final RVU Calculation
Similar to the calculation for codes with physician
work, the 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 13, the sum of the scaled direct and indirect
expenses for hypothetical code 00002 ($148.26) is multiplied
by the BNF (0.022 in this example) to yield a PE RVU of
3.26.